Having immersed myself in the crypto space for 8 years, from starting with a capital of 20,000 to reaching an asset scale of 12 million, the process hasn't been smooth sailing, but a set of effective methodologies has supported me throughout.

It's not about betting on single market moves to make quick money, but about risk management and disciplined execution, maintaining monthly returns at around 45%. I’ve taught this approach to several students; after about 3 months following the steps, they can double their capital, which proves its replicability.

The core logic of trading can be summarized into 8 points, simple and straightforward but effective:

**Capital Management is the First Line of Defense** — Divide the principal into 5 parts, only deploy 1/5 of the position at a time. Set stop-loss at 8 points; even if you get it wrong 5 times in a row, you only lose 8% of the total capital. Essentially, this is using cost to buy error tolerance. Take profit at above 12 points; the risk-reward ratio is sufficiently ideal.

**Trend Judgment Should Have Bias** — The rebound after a decline is often a trap set by bears to lure in buyers; real opportunities are in small pullbacks during an uptrend. The idea of buying on dips is overused, but it remains the most stable way to make money.

**Beware of Short-term Explosive Coins** — Tokens that double overnight, high-level stagnation is usually the calm before a fall. Don’t try to catch the last train; it often ends in a crash.

**MACD Has Predictable Patterns** — A bullish crossover below the zero line is a buy signal; a death cross above the zero line suggests reducing positions. Technical indicators aren’t foolproof, but using them with the right rhythm makes a difference.

**Cut Losses When Losing, Add When Profiting** — Many do the opposite: they keep adding to losing positions in hopes of recovering, and become timid when in profit. Averaging down is a trap; countless traders have been burned by it.

**Volume and Price Should Be Analyzed Together to Determine Trend** — Mild volume increase and a break below support at low levels indicate a true breakout; high volume at high levels with stagnation suggests weakening momentum. Changes in volume often precede price movements.

**Only Trade Upward Cycles** — Looking at longer cycles, the 3-day, 30-day, 80-day, and 120-day moving averages turn upward sequentially, indicating different levels of an uptrend. Trading with the main trend always offers the highest probability of success.

**Review Every Night** — Check whether today’s position logic still holds, whether the weekly K-line trend has changed, and if trend signals have been broken. Timely adjustments are more important than dwelling on past mistakes.

Those who can survive and profit in this market are never bystanders; they are the ones brave enough to reach out at the right moments.