Last year, I set a small goal for myself: to test the waters with 50,000 yuan. I never expected that after 6 months, my account balance would reach 1,000,000. 20x returns? Sounds unbelievable, but it really happened to me.

It wasn’t pure luck, nor did I have any insider information—I just thoroughly figured out position management. Today, I’ll break down my approach. For those who can understand it, maybe it’ll help you avoid some detours. But let me say this up front: this method is a double-edged sword. Used correctly, it can amplify your returns; used incorrectly, 90% of people will lose all their principal due to a few common mistakes.

If you plan to stay in this market for three to five years and truly want to earn from the trends, I suggest you read this patiently. Who knows, your turning point might be hidden in a small detail.

# # **Left-Side Positioning: How to Catch the Bottom During a Crash**

A lot of people panic when they see a big drop. They either don’t dare to act, or they go all in at once—both are ways to lose money. My experience is to split your capital and use it in stages:

**Three-Step Probe-Add-Close Approach**: Start by probing the bottom with 20% of your position. If the price continues to fall, add another 30% to lower your average cost. Keep the remaining 50% for when the price truly stabilizes. This way, you won’t get trapped by a false bounce, nor will you miss real opportunities.

**Pyramid Averaging Down Method**: Use only 5% of your capital for the initial position, then double your position every time the price drops by 10%. This tactic keeps lowering your average entry price and prevents you from getting fully stuck from the beginning.

**Opportunities in the Death Shakeout Zone**: When the RSI stays below 30 for three consecutive days, panic is often at its peak—which is exactly when opportunities arise. I call this the “inverted funnel strategy.” After such extreme oversold conditions, rebounds can often reach 300% or even higher.

# # **Right-Side Chasing: What to Do When the Main Uptrend Arrives**

The left side is about bottom fishing; the right side is about chasing the rally. Don’t feel bad about chasing—most profits come from following the trend after it’s confirmed.

**Moving Average Golden Cross Signal**: When the 5-day MA crosses above the 10-day MA, use 30% of your capital to test the waters and see if this breakout is real or fake.

**Lifeline Ambush**: If the price breaks above the 30-day MA and then successfully retests it as support, that’s a great opportunity to add another 30% of your main position.

**Breakthrough of Key Resistance Levels**: When the price surges through an important resistance level with heavy volume, add another 20% to your position. Such breakouts often signal the start of a new rally.

**Super Acceleration Signal**: When the MACD shows a second golden cross and trading volume doubles, that’s the strongest sprint signal—consider deploying all your remaining capital.

# # **Core Principle: Don’t Let Human Nature Destroy Your Account**

Technical tools and strategies are just that—tools. What really determines wins and losses is whether you can control yourself.

**Drawdown Management**: Set a hard rule for yourself—never let your daily drawdown exceed 5%. If you hit that line, stop immediately. Don’t gamble on luck. Small losses can be recovered, big ones are usually game over.

**Pre-Set Rules**: Decide your stop-loss and take-profit levels before entering a trade. Stick to them—don’t change your mind on the fly. Greed and fear will make you do the dumbest things.

**Compound Growth Model**: Every time you make 50% profit, withdraw your principal and keep rolling only with the profits. This way, even if you mess up later, at least your original capital is safe and your mindset will be much more stable.

There are no gods in this market, only the question of whether your method is right. If your direction is wrong, working harder is pointless; if your direction is right, doubling your money is just the beginning.