Having been in the crypto circle for ten years, I went from starting with 800 yuan to reaching 48 million. It’s not talent or insider information that got me here, but a set of five-fraction trading methods that many people laugh at as "too conservative." I also taught this strategy to my apprentices, and within three months, their accounts doubled directly. Today, I will fully lay out the eight core insights without holding back.

First is the fundamental principle of capital management—the five-part capital method. Divide the principal into five parts, and only trade with one part each time. What’s the cleverness of this design? Set the stop-loss at 10%, so each loss only consumes at most 2% of the total capital. Even if you make five consecutive wrong trades, you only lose 10% in total. Conversely, just one correct trade can usually yield over 10%. With compound interest stacking up, time will prove that this "slow" approach is actually the fastest.

The second iron rule of trading is to follow the trend. Both dips and rebounds, as well as rises and pullbacks, may look like opportunities, but they are actually traps. True opportunities only appear when the trend is confirmed. Trends are always smarter than retail traders, and fighting against them is suicide.

How to identify the trend specifically? MACD is the most effective radar. When DIF and DEA form a golden cross below the zero line, and are about to break above zero, it’s time to enter decisively. Conversely, when a death cross appears above zero, immediately reduce your position or exit. Master the rhythm of MACD, and you’ll avoid many detours and lose less real money.

Next is the most common psychological mistake—adding to a losing position. The more you lose, the more you add, only digging yourself deeper. The only reasonable time to add is when the account is in profit, not when you’re in a losing swamp and panicking.

Volume-price relationship is the true reflection of the market. A volume breakout at a low level is a signal to start; a volume surge at a high level with stagnation indicates an exit. Candlestick charts can deceive, but trading volume never lies.

Finally, confirm the coin selection across multiple timeframes. An upward trend on the 3-day moving average allows for short-term pulses; an upward trend on the 30-day moving average indicates a strengthening medium-term trend; an upward trend on the 84-day moving average suggests a brewing main rally; and an upward trend on the 120-day moving average signals a long-term bull market where you can just sit back and win. Always only trade coins that align with the larger cycle trend to maximize your chances of winning.