That 3 million liquidation event brought me to my lowest point.

But it was also during that time that I understood what it means to make money by staying alive.

Starting with 4,000 yuan, over three years I grew to 38 million, without any tricks or shortcuts, relying solely on a proven "Five-Partition Risk Management System." Later, I shared this method with a few traders, and one of them doubled his account in just three months.

Today, I will share the complete approach.

**① Five-Partition Allocation, 10-Point Stop-Loss as the Bottom Line**

Divide your capital into five parts, and only use one-fifth for each trade. This way, if you exit at a 10-point stop-loss, the maximum loss per trade is 2% of total funds.

Losing five times results in only a 10% loss, but as long as you catch a profit of over 10% once, it can cover all previous losses. Staying alive is always the top priority.

**② Trend Following is the Most Reliable "Insider" for Retail Investors**

Rebounds in a downtrend are traps—avoid them. Pullbacks in an uptrend are the real entry points.

Follow the market’s rhythm, don’t trade based on your mood.

**③ Avoid Highly Volatile Stocks, Exit Decisively at High Levels**

The probability of continued upward attack after a rapid short-term surge is very low. Truly strong upward waves that complete three phases are rare.

Once you see stagnation or volume drying up at high levels, it’s a sign of weakness. Missing the last push is a survival rule.

**④ MACD is the Most Practical Trading Signal**

A golden cross below the zero line and breaking above it = a safe entry point.

A death cross above the zero line and heading down = a clear signal to reduce positions.

Look at the data, don’t rely on feelings.

**⑤ Averaging Down is the Easiest Trap for Retail Investors**

The more you average down on losing positions, the deeper you sink—creating a vicious cycle.

The correct logic is only twofold: don’t add to losing trades, add to winning trades.

**⑥ How to Read Volume? One Principle: Low-volume breakout at low levels is an opportunity; high-volume breakout at high levels is a signal to escape.**

Breakout with volume at low levels = bottom confirmed, worth paying attention.

Stagnation with volume at high levels = main players are unloading, time to exit.

**⑦ Only Trade Upward Trending Stocks, Don’t Waste Time on Downtrends**

Continuous rise of the 3-day moving average = short-term upward trend.

Continuous rise of the 30-day moving average = mid-term upward channel begins.

Continuous rise of the 84-day moving average = main upward wave.

Continuous rise of the 120-day moving average = long-term upward trend established.

Only focus on upward movements, avoid participating in downward trending stocks.

**⑧ Daily Review is the Fast Track for Ordinary People to Improve**

Has the logic changed? Has the trend reversed? Is there a counter-signal on the weekly chart?

Every trade is an opportunity to adjust your strategy.

From someone groping in the dark to having a clear trading lighthouse—that’s the difference. Mastering this system can help you avoid many years of detours.