I've been in this market for seven years. I started with 30,000 yuan, and now my account has reached the 50 million level. Many people ask me what my secret is. To be honest, it's all about sticking to the "50% Position Rule"—never risking everything, never going all-in.



On average, I can achieve a 70% monthly return. I once mentored a student who followed this strategy and doubled their capital in three months. The market looks pretty good today, so I felt inspired to lay out the things I've learned over the years.

**Let's start with position sizing.**
I divide my principal into five parts and never use more than one part per trade. Each trade has a 10% stop-loss, so even if I hit a bad trade, I only lose 2% of my total account. Even if I get five trades wrong in a row, the total loss is just 10%. But as long as I catch the right trend, taking profits above 10% is easy—no matter how you calculate it, you can't lose.

**About trend judgment.**
Most rebounds during a downtrend are bull traps. In a real uptrend, every dip is a buying opportunity. Don't always try to catch the bottom or the top—following the market works better than guessing turning points. Coins that spike in the short term? Don't touch them. Whether it's blue chips or small caps, consecutive strong rallies are rare, and the higher the price goes, the harder it is to keep climbing. If you see high volume at the top but the price doesn't move, that's a signal it's running out of steam and will probably go down next.

**As for technical indicators, I mainly watch MACD.**
When the DIF and DEA lines cross upwards below the zero line and break above it, that's a solid entry point. Conversely, if the MACD dead crosses and turns down above the zero line, it's time to reduce your position—no hesitation.

**Here's a pitfall you must avoid—averaging down on losing positions.**
This strategy has ruined countless retail investors: lose, add more, lose even more, and get stuck deeper. Remember this: only add to winning trades, never throw good money after bad on losing ones.

**Keep a close eye on volume and price action.**
If a coin consolidates at a low level for a long time and suddenly breaks out with volume, it's worth watching. If there's high volume at the top but the price stalls, get out. Volume doesn’t lie—it's the truest reflection of market sentiment.

**The moving average system is my main battlefield.**
If the 3-day MA turns up, there's short-term potential. If the 30-day MA is rising, the mid-term trend is in place. If the 84-day MA starts to rise, it means we're entering a major rally. If the 120-day MA is also up, that's a long-term bull market. Time is money—picking the right trend makes you ten times more efficient.

**You must review your trades after every close.**
Check if your logic has changed, whether the weekly trend matches your expectations, and watch for any signs of reversal. The market changes, and your strategy needs to adapt.

Ultimately, relying on emotion or luck won’t get you far in this market. Only a systematic thinking framework and a repeatable trading method can cut through the noise and distractions and actually make you money.
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