Since I entered the crypto space 8 years ago with 20,000 yuan, I have been thinking about running away for the past two months. My account has been daily plummeting, and watching the balance slide down in a striped pattern is still a bit painful to recall. The turning point came from three ironclad rules of fund management and two trading techniques— all earned with real money.

Let's start with the most critical point: diversification of principal. I split my funds into 5 parts, only moving one part at a time. Sounds conservative? But even if I lose five times in a row, the total loss would only be about 10%, which doesn't damage my core strength. The stop-loss is set at 10% as the bottom line; bleeding must be controlled. Profit-taking is even more important—set at a minimum of 10% to exit, and don’t always think about waiting longer or earning more, as greed often leads to double losses. Without capital, there’s no chance to turn things around; this is a lesson I learned the hard way.

Next is the trend issue. In my early years, I loved doing one thing: rushing in to buy the dip during a decline, with my mind full of thoughts of a rebound. The result? I got deeper and deeper trapped. Later, I realized that rebounds in a downtrend are mostly trap setups; the real opportunity is during normal pullbacks in an uptrend. Follow the trend, don’t fight against the market—this can double your win rate.

Regarding coins that surge wildly, I advise you to stay away. Those short-term skyrocketing assets look tempting, but most can’t withstand the volatility. Especially during sideways consolidation at high levels, don’t hold onto the illusion of “catching the last wave”—you’ll just get buried.

Technical analysis doesn’t need to be complicated. Use MACD to gauge the overall trend, but don’t focus only on the golden cross signal; RSI helps you judge bullish or bearish momentum and find entry points; VPVR is used to identify support and resistance levels. These three tools are enough.

There’s also a deadly trap: adding to losing positions. I used to think “averaging down” during a decline, pouring more money in, but ended up losing even more. The correct approach is to add only when in profit, as the trend is already turning positive, and the risk is actually lower.

Volume-price relationship is a barometer of market sentiment. A sudden surge in volume at a low level often signals a start; high volume at a high price with no movement usually indicates a pullback, so it’s time to exit.

Finally, multi-timeframe review is essential. I habitually look at 1-hour, 4-hour, daily, and weekly charts simultaneously—when the daily is rising, a 1-hour pullback is an opportunity; if the weekly is falling, don’t hold too much hope for short-term gains. Reviewing my trading logic daily is much more reliable than chasing stories of “getting rich overnight.”