Having been active in the crypto market for seven years, my assets have grown from initial thresholds to where they are now, and earning stable monthly profits has become routine for me. The pitfalls I’ve stepped into and the waters I’ve navigated over the years have gradually refined a relatively robust trading logic.

First is the fundamental position management—The Five-Partition Method. Divide your funds into five parts and only invest one part at a time. The obvious benefit of this approach is: with a 10-point stop loss, a single mistake costs only 2% of the total capital; five mistakes would only lose 10%. Conversely, once the correct direction is set with a take profit of over 10 points, the account growth rate will become significantly different.

Next is the importance of trend-following trading. During a downtrend, every rebound hides the risk of false signals; during an uptrend, every pullback could be a trap for bottom-fishing. Compared to blindly bottom-fishing, the success rate of low-entry buying is much higher. Also, avoid coins that have experienced rapid surges in the short term, whether mainstream or altcoins, following this principle. After a short-term surge, further upward movement becomes difficult; at high levels of stagnation, subsequent weakness will naturally lead to a decline—this is basic supply and demand logic.

On the technical side, MACD can help accurately identify entry and exit points. When DIF and DEA form a golden cross below the zero line and break above it, it’s a relatively stable entry signal. Conversely, when MACD forms a death cross above the zero line and moves downward, it’s a signal to reduce positions.

The operation of adding positions (averaging down) has tripped up many people. The cycle of losing more and adding more can easily push someone into a deep abyss. The correct approach is to add positions only when in profit, not when in loss.

Trading volume often reflects true intentions better than price. Pay close attention to volume breakout in consolidation zones at low levels, but if volume surges and prices stagnate at high levels, you must decisively exit.

Finally, it’s an art to select the trend. Focusing only on coins in an upward trend is the most efficient. A 3-day moving average turning upward indicates short-term opportunities; a 30-day moving average turning upward signals medium-term opportunities; an 84-day moving average turning upward marks the start of a main upward wave; and a 120-day moving average turning upward signifies the establishment of a long-term trend. Regularly review the weekly K-line trend and adjust strategies promptly. This is the key to maintaining stable profits during altcoin seasons.