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Having navigated this market for 8 years, from frequent trial and error at the beginning to now developing a relatively stable cognitive system. There are no insider tips, nor do I rely on luck; I simply adhere to a set of somewhat "clumsy" methods—yet it is precisely this clumsiness and discipline that help avoid most emotional traps.
This approach isn't complicated and has withstood the test of the market. The core can be summarized in six points, which I share with everyone:
**First: Diversify your funds, don’t go all-in**
The most basic risk management. Divide your principal into 5 parts, with each trade risking no more than 10%, and keep the overall drawdown within 2%. It sounds conservative, but the logic is clear—even if you suffer five consecutive losses, your account only shrinks by 10%, and a strong market move can recover all the trial-and-error costs. Stability is the foundation of compound growth.
**Second: Follow the trend, don’t try to guess the bottom or bet on the top**
During a decline, no matter how cheap it looks, don’t rush to buy the dip; when it rises, don’t rush to sell and run. The best entry opportunities appear after the trend has been established. The market’s greatest tormentors are those trying to buy the bottom or sell at the top—wait until the market shows a clear direction, then opportunities become more abundant.
**Third: Stay away from those skyrocketing coins; rationality is the most valuable**
Short-term gains of several times or ten times are often traps, not opportunities. Whether it’s mainstream coins or small tokens, once the gains are outrageous, simply avoiding them already beats most people. The habit of chasing highs must be broken.
**Fourth: Use indicators, but don’t be enslaved by them**
Take MACD as an example: a golden cross below the zero line can be seen as a setup signal; a death cross above the zero line is a sign to reduce positions. Increasing positions should only be based on already profitable trades; never add when in loss—this helps you block out a large part of emotional interference.
**Fifth: Volume is the true pulse of the market**
A volume breakout at a low level is often a clear signal of a bullish start. Also, pay attention to the direction of the 3-day, 30-day, 84-day, and 120-day moving averages; only participate in assets that have already formed a bullish alignment. Combining volume with moving averages gives a clearer picture.
**Sixth: Review is the only way to improve**
Every trade must be reviewed. Was the buy logic sound? Where did mistakes happen? Has the weekly trend changed? Experts succeed not by prediction but by continuous reflection and correction.
These methods may sound simple, but the real challenge is maintaining discipline over the long term. The market ultimately rewards those who stay calm amid noise and stick to their rhythm amid volatility. If you’re still looking for direction, give this set a try. As long as you are willing to persist, your understanding will gradually become clearer.