Do you also have moments like these—just after opening a long position, the market suddenly plunges; switch to short, and it immediately reverses?



It feels like the entire market is against you, and your funds are constantly shrinking.

In fact, this is the norm for most traders. Many people in the crypto space accumulate losses, but it’s not because their technical skills are poor—true killers are those trading based on "feelings" and placing orders arbitrarily.

I’ve been through the ups and downs for years and have summarized a trading framework that, while seemingly "basic," can sustain survival. I don’t expect to get rich overnight; the key is to stay alive steadily.

**Money Management is the Line of Life and Death**

Divide your trading capital into 5 parts, only use one-fifth for each entry. Set a 10-point stop-loss—this means a mistake will only lose 2% of your total funds. Even if you fail 5 times in a row, the total loss would be around 10%. As for profit targets, set them above 10 points and let the profits run. The mindset of chasing a perfect hit and frequently closing positions is the easiest way to get caught.

**Follow the Trend, Don’t Think About Counter-Trend Operations**

The momentum of the market is your most reliable partner. In a downtrend, sudden rebounds are often traps set by the main players to lure in shorts; in an uptrend, real opportunities are usually hidden in brief pullbacks. Instead of frequently bottom-fishing, it’s better to enter along the trend’s lows—this will significantly improve your win rate.

**MACD and Volume-Price Combined Signals**

When MACD forms a golden cross below the zero line and then breaks above zero, that’s a relatively solid entry point. Observe volume and price simultaneously: a volume breakout at the bottom is a key focus; if at high levels, volume increases but price stagnates, it’s time to exit decisively. The coordination between volume and price almost never deceives you.

**Trade Only Coins in an Uptrend Channel**

Look at the moving averages: a 3-day moving average trending upward indicates short-term bullishness; a 30-day moving average rising suggests medium-term optimism; an 84-day moving average upward may mean the main upward wave is starting; a 120-day moving average rising indicates a long-term trend is established. Focus on coins clearly in an uptrend and avoid wasting energy on sideways or declining assets.

**Stick to Weekly Review and Adjust Your Strategy**

Review your positions weekly to see if your logic still holds and whether the weekly candlestick trend deviates from your initial expectations. Adjust your strategy parameters in time to avoid being trapped by inertia.

This methodology may sound simple, but it can turn trading from emotional-driven to rule-based execution. The cruelest fact in the crypto world is—surviving longer is more valuable than making quick profits. If you’re tired of being repeatedly "cut" by the market, try using this framework to standardize every operation. #数字资产动态追踪 $SOL
ETH0.59%
SOL0.35%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 4
  • Repost
  • Share
Comment
0/400
BlockchainTherapistvip
· 7h ago
You're so right, it feels like we're always getting beaten up by the market.
View OriginalReply0
fomo_fightervip
· 01-05 00:50
Basically, don't rely on intuition to play; only with rules can you survive longer.
View OriginalReply0
DefiPlaybookvip
· 01-05 00:47
According to on-chain transaction data, the risk control theory of this fund management framework is indeed solid—limiting single losses to 2% can effectively reduce the risk of bankruptcy. Historical data shows that traders who implement such strict stop-loss measures have a survival cycle approximately 3.7 times longer.
View OriginalReply0
ProofOfNothingvip
· 01-05 00:37
It's the same old story again; fund management is indeed important, but too many people talk about it.
View OriginalReply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)