Here's a little story for reference

#数字资产市场动态 A friend invested 5000U to enter the market, and after three days, his account was only left with 3200. He asked me if he was just unlucky. I reviewed his trading records — all his trades were full leverage, he would add to his position after three mistakes, and if he made two more mistakes, he would blow up. A typical case of "seeing the right direction but losing the position."

I organized these insights for him, and after three months, his account recovered to over 4800. Although it wasn't the thrill of getting rich quickly, at least he could sleep peacefully. Today, I want to share these practical experiences as a starting point.

**First Tip: Divide your funds into five parts, and set a strict stop-loss at 2% per trade**

Split your total capital into five equal parts. Each time, only use 20% of one part to trade, with a stop-loss fixed at -2%. Even if you lose five times in a row, your total loss is only 10%, leaving room for a comeback. On-chain data shows that new traders have an average trading frequency of 21 times in the first month. Using this method, the maximum drawdown dropped from 38% to 9%.

**Second Tip: Follow the major trend, don’t rely on faith to bottom fish**

In December 2023, the daily EMA30 of BTC started trending downward. I advised him not to rush into bottom fishing. He listened and stayed in cash. As a result, the price fell all the way to 40k, and he avoided a 25% decline. Later, I realized that trend-following is much more reliable than shouting slogans on forums.

**Third Tip: Don’t touch coins that surge 300% in three days**

Coins that spike wildly tend to retrace about 80% within two weeks, which indicates a pump-and-dump scheme. In December last year, a MEME coin surged 450% in one day. He resisted chasing the pump, and five days later, the coin returned to its starting point. Safety is the most valuable.

**Fourth Tip: MACD zero line is like a traffic light**

A bullish crossover below the zero line is a buy signal, while a death cross above the zero line suggests reducing positions. This basic indicator can filter out about 50% of false signals. Backtesting shows a success rate of 64%, much more reliable than relying on intuition.

**Fifth Tip: Only add to profitable trades, don’t average down on losers**

For profitable trades, add a new position every 10% gain. For losing trades, don’t add more — it only deepens the trap. He used this method to turn a 38% profit on SOL, while others who kept adding lost 15% in the same period.

**Sixth Tip: No volume means no movement**

Low-volume rise indicates genuine capital inflow; high-volume stagnation suggests main players are distributing their holdings. On December 9, when APT broke out with high volume, he took a 10% position. The next day, volume shrank, so he reduced his position, avoiding a subsequent 12% drop.

**Seventh Tip: Moving averages are your navigation**

The 3-day MA helps catch intraday rhythm, the 30-day MA indicates medium-term trend, the 84-day MA tracks major upward waves, and the 120-day MA defines the long-term pattern. Price relative to these lines guides your decisions. Don’t guess tops or bottoms; follow the trend to avoid getting lost.

**Eighth Tip: Review with three questions daily**

Ask yourself: Is my logic sound? Are the signals truly confirmed? Am I being influenced by emotions? Write these down and review weekly. He persisted for a month and realized that 83% of his losses came from emotional trading, so he blacklisted impulsive trades.

Markets are always there, opportunities can appear at any time. To stay on beat and reduce confusion, you need these proven methodologies.