Traders who have been rooted in the crypto space for years know that making money is not about luck, but relies on strict discipline and replicable methods. Someone used 7,000 yuan of principal to turn into 38 million over three years on ZEC, and there’s no secret behind it—just sticking to a steady and reliable trading system.

**Position Management is Fundamental**

Divide your funds into five parts, and only move one part at a time. Set a hard stop-loss at 10%—this means a single mistake only damages 2% of your total capital. Five consecutive mistakes would only hurt 10%. Conversely, aim for more than 10% profit-taking, using small amounts to test and aim for big gains. Being caught in a position becomes difficult when you’re too conservative.

**Follow the Trend to Win**

Never go against the overall trend. Rebounds during a downtrend are often traps; corrections during an uptrend are true opportunities. Moving with the trend naturally increases your chances of winning. Let go of coins that have surged in the short term—whether mainstream or small coins, continuous main upward waves are low probability. High-level stagnation signals risk; if it can’t be pushed higher, a decline isn’t far off.

**Keep Technical Indicators Simple**

MACD is enough to determine direction. A bullish crossover below the zero line that breaks above zero is a buy signal; a death cross above the zero line indicates to reduce positions decisively. Also, pay attention to volume and price: a volume breakout after consolidation at low levels is a key entry point; high-volume stagnation at high levels suggests it’s time to exit.

**Two Iron Rules of Risk Management**

First: Never add to a losing position. Averaging down when losing only amplifies mistakes, and most retail traders fall into this trap. Second: Only scale into positions when in profit. Losses and gains follow different logic and should not be mixed.

**Use Cycles to Spot Layout Opportunities**

When the 3-day moving average is rising, there’s short-term opportunity; when the 30-day is rising, consider mid-term layout; when the 84-day is rising, it may signal the start of a main upward wave; and when the 120-day is rising, the long-term trend is established. Different cycles provide different operational windows.

**Review to Progress**

Every trade must be reviewed afterward. Has your logic for holding coins changed? Is the weekly trend still healthy? Do strategies need adjustment? Reject stubborn holding; stay flexible. Only then can you go further in the market.