In the cryptocurrency trading world over these years, I have seen too many people relying on luck to make quick money only to lose everything in the end. Frankly speaking, those who survive in this market are never because of good luck, but because they have a strict system constraining them.

I have gone through this myself—starting with 7,000 yuan in capital, accumulating considerable gains over three years, with monthly return rates reaching significant levels. Sounds like a fairy tale? Not really, as long as you are willing to follow this set of strict rules.

**Position Sizing Is the Premise for Survival**

The first iron rule is position sizing. Divide your funds into five parts, and only use one part each time you trade. Set a stop-loss at 10 points; the maximum loss per mistake is 2% of your total capital. Even if you make five consecutive wrong calls, your overall loss is only 10%—a tolerable price. Conversely, once the trend is correct, look for take-profit points above 10 points. The logic is simple: first ensure you don’t die, then consider how to win.

**Follow the Trend, Don’t Fight the Market**

In a downtrend, any rebound is just a bull trap. In an uptrend, pullbacks are the best entry points for adding positions. Many people like to trade against the trend, thinking they are geniuses, but the result is often crashing into bullets. The power of the trend is much greater than you imagine; riding with it is much easier than fighting against it.

**Stay Away from Coins with Short-Term Explosive Growth**

Coins that suddenly surge wildly—no matter how good their stories—are not worth touching. Once a big rally completes, at high levels, the momentum stalls and begins to decline. Don’t catch the last ride, because it usually ends in a trap.

**Moving Average Signals Won’t Lie to You**

When the MACD forms a golden cross below the zero line and then crosses above zero—this is a confirmed entry signal. Conversely, when a death cross occurs above the zero line and starts trending down, reduce your position immediately—don’t expect a reversal.

**Caution with Averaging Down**

The idea of "averaging down" is the biggest trap for retail investors. Remember: only add to winning trades, never to losing ones. It sounds simple, but executing it requires mental discipline. Most people can’t do it, which is why they suffer the worst losses.

**Volume Is the Barometer of Price**

Accumulation at low levels followed by a sudden increase in volume is an opportunity. Large volume at high levels with stagnant prices is a warning sign. Volume leads price—if you don’t understand volume, you won’t understand what the market is thinking.

**Different Timeframes Reveal Different Opportunities**

A rising 3-day moving average suggests a short-term opportunity. An upward 30-day moving average indicates a medium-term trend. An upward 84-day moving average suggests a major move may be starting. A rising 120-day moving average shows long-term stability. Always ride the upward trend—that’s the hard rule.

**Ask Yourself Three Questions After Each Trade**

After closing a trade, ask yourself: Does the original logic still hold? Has the weekly chart pattern worsened? Has the trend direction reversed? Based on your answers, adjust your strategy dynamically. The market is not dead, and neither should your trading approach be.

**The Methods Are Clear, Now It’s About Execution**

In the past, I was blindly walking in the crypto world; now I have a light. The rules are laid out—what matters is whether you are willing to strictly follow them. Most pitfalls can be avoided as long as you actually implement the rules, not just read them once and forget.

Follow the right mindset, choose the right path—only then can you navigate the crypto market steadily.