Want to trade but always feel the barrier is high? Actually, it doesn't have to be so complicated. Today, I share a very practical methodology—trend-following trading based on moving averages. The logic is simple enough, rules are clear, and most importantly, even beginners can use it directly.

The core idea of this method boils down to two words: follow the trend. No predictions, no gambling on news, just follow the actual market trend. Your job is to identify the trend, standardize your operations, and stick to discipline.

**Step 1: Choose the right assets to participate in**

Not all coins are worth touching. Focus on two conditions—upward trend or strong consolidation. How to judge specifically? When the moving averages are arranged upward overall, and the candlestick structure isn’t broken, that’s considered valuable for participation. Conversely, for assets in a downtrend or with diverging moving averages downward? Even if cheap, don’t jump in casually—just skip.

**Step 2: Enter gradually with position sizing, steady and sure**

Don’t go all in at once. Divide your funds into three parts, corresponding to three key levels:

When the price first breaks above the 5-day moving average, invest one-third of your total funds to establish an initial position.

If it continues to stay above the 15-day moving average, add another third to increase your position.

Finally, when it breaks through the 30-day moving average, put the remaining one-third of your funds in.

This process shouldn’t be rushed. Wait for each confirmation before proceeding to the next step; don’t rush ahead.

**Step 3: How to respond to pullbacks**

Pullbacks are inevitable after entering. At this point, observe which moving average the price pulls back to:

If after breaking above the 5-day moving average, the price pulls back but doesn’t truly break below the 5-day MA, keep your position unchanged.

If after breaking above the 15-day moving average, the pullback doesn’t break below it, hold on; if it does, reduce your position by one-third.

The same logic applies after breaking above the 30-day moving average—handle according to the corresponding MA.

**Step 4: Exit rules are the most critical**

Entering is easy, exiting is hard. Here, I emphasize—if the price falls below the 5-day moving average at a high level, sell one-third immediately.

If the price loses the 5-day, 15-day, and 30-day moving averages in sequence? Don’t hesitate—liquidate all positions. Don’t think a rebound will save you.

**Why does this method make money?**

Sounds simple, right? Honestly, the secret of technical analysis is just that simple. Those who can consistently make money are not the ones who master the most techniques, but those who stick to a simple set of rules and execute them well.

Many people like to study various indicators and pursue more complex theories. But the core of trading has never been complicated—follow the trend, scale into positions gradually, and maintain discipline. Repeat these three points, do them well, and the results will far surpass anything else.

The key is execution. If you understand this principle, whether you can stay calm during market fluctuations and strictly follow the rules will determine your final outcome.