Having navigated the crypto world for these years, many people are desperately trying to find that stable way to make money. Instead of superstition about overnight riches, it’s better to return to the simplest logic—using 7 years to grow from a small capital to a substantial scale, relying on persistent risk management and understanding market rhythm.

**Fund Allocation is Fundamental**

Divide your principal into three parts, and only move one-third at a time. It sounds conservative but is actually an advanced approach. Set a stop-loss at 8 points; a single loss can at most touch 2.7% of the total funds. Even three consecutive mistakes only result in an 8% drawdown. Conversely, aim for take-profit at over 15 points—this asymmetric risk-reward ratio is incredibly powerful over the long term. Want to get caught deep? Under this logic, it’s really not easy.

**Timing Decides Success or Failure**

$BTC and $ETH markets are never unidirectional; oscillation ranges are the killers. The upper boundary is often a trap for retail investors, while the real opportunity to scoop up coins is at the lower boundary—this is not luck, but a pattern. Those coins that double in a short period, whether mainstream or altcoins, are not worth touching. Only a rare few can sustain a continuous upward wave. When high prices stagnate and volume drops, a decline becomes inevitable.

**Focus on Moving Averages for Technicals**

Complex indicators are often just eye tricks. The 20-day moving average line is enough. When the price stays above the 20-day MA and turns upward, that’s a buy signal; if it breaks below and turns downward, exit quickly. Simple and straightforward, but effective.

A short-term upward turn of the 5-day MA indicates short-term action; a rising 60-day MA suggests mid-term bullishness; a rising 120-day MA signals a main upward wave; an upward 250-day MA indicates a long-term stabilization—layered logic makes it naturally clear.

**Diluting Costs Is the Biggest Trap**

How many retail investors have been wiped out because they keep adding when losing? This trap is classic. Wrong approach: adding to losing positions. Correct approach: decisively stop adding when losing; only add in parts when making profits. This is an iron law and a psychological game.

**Understand Volume-Price Relationship to See Through the Market**

When volume surges at low levels and breaks through key levels, follow along; when volume surges at high levels but prices don’t rise, exit quickly. This contrast often hints at a reversal in advance.

**Post-Trade Review Is Necessary**

Why hold this coin? Where are the support and resistance? What is the current trend? Review each trade and adjust your strategy based on market dynamics. Traders who are too rigid are most likely to get wrecked.

The most core point: only trade coins in an upward trend. The win rate will naturally be higher. Stick to this logic, don’t rely on luck or tricks, just a steady methodology. Long-term gains are right in front of you.