People often ask me what the secret to making money through trading is. Honestly, it’s pretty straightforward. The market looks colorful on the surface, but the logic behind making money has always been very simple. Over the years, I’ve experienced pitfalls in practice and summarized some rules. Today, I’ll share a few core principles that are truly effective, especially suitable for those who want to trade steadily and reliably.

**Tip 1: Focus on "Living Water" When Choosing Coins**

I never touch dead coins. To judge whether a coin has major players involved, you just need to look at one thing—funding attention. If a coin can’t even make it onto the top gainers list, it’s basically a sign that no one is taking it on. My habit is to quickly scan the top 20 gainers every day, paying special attention to two situations:

One is coins with good volume-price coordination, with continuous three days of increased volume (volume ratio over 1.5x). This indicates genuine, sustained capital inflow, not a fleeting spike. The other is coins where the monthly MACD shows a golden cross, especially when the first pullback doesn’t break previous lows. These often can develop into trend-following行情.

But don’t be greedy. Also, track no more than five coins at a time, so you have the energy to understand each one’s temperament and rhythm, rather than passively chasing highs and selling lows.

**Tip 2: Use the Monthly Chart to Set the Big Direction, the Daily Chart to Find Entry Points**

"The big on small" principle has saved me countless times. I usually confirm the trend with the monthly MACD golden cross. As long as the monthly chart doesn’t show a bullish crossover, I stay calm regardless of short-term fluctuations, which can’t shake my confidence.

How to enter? There are two conditions: First, when the price retraces to the 60-day moving average, it must do so with increased volume—at least 1.5 times the average volume. Second, on the 30-minute chart, the candlesticks should be above the MA20 line—never chase after false浪 at high levels.

Take SOL as an example. Last month, when it retraced to the 60-day line, there was obvious volume increase. I entered manually when the 30-minute chart broke above the MA20, and the entire wave gained over 20%. Because both bulls and bears understood the situation, I felt confident.

**Tip 3: Execute Stop Loss and Take Profit Mechanically, Don’t Rely on Feelings to Gamble**

Stop loss is the lifeline to protect your principal, and take profit is the insurance to lock in gains. The rules must be simple enough that you don’t hesitate:

If the price falls below the lowest point of your entry candle, or if your account has already lost 3%, cut it immediately—no discussion. When profits reach 30%, take half off the table. The rest can run, but your principal must be protected.

It sounds easy, but execution is the hard part. Most people hesitate to sell when they’re making money, and hesitate to cut losses when they’re losing, ending up giving back their profits. Mechanical execution of these rules doesn’t guarantee every win, but at least it ensures you stay alive long enough to wait for real opportunities.