Having traded in the crypto space for years, I’ve seen too many people suffer repeated losses due to mindset and strategy issues. Actually, trading isn’t that complicated; the key is to establish a workable system. Today, I’ve summarized 8 core principles, all tested in real trading:

**Position size is the first line of defense**. Divide your capital into 5 parts, using only one-fifth each time. Set a stop-loss at 10 points, so the maximum loss per trade is 2% of total funds. Even if you make 5 wrong calls in a row, the total loss is only 10%. Conversely, set take-profit at over 10 points; once your judgment is correct, your gains double.

**Following the trend is the shortcut to profit**. Rebounds during a downtrend are often trap moves, and dips during an uptrend often hide golden opportunities. Instead of chasing perfect bottom-fishing, wait for opportunities to buy low.

**Stay calm about short-term surges in coins**. Whether mainstream or altcoins, it’s difficult for prices to continue rising significantly after a short-term rally. High-level stagnation is a signal; a likely decline follows. The logic is simple, but many still want to gamble on it.

**Technical indicators give clear signals**. Using MACD is very effective—when DIF and DEA form a golden cross below the zero line and break above zero, it’s a buy signal; a death cross above zero indicates reducing positions.

**The most fatal mistake is adding to losing positions**. This is a common trap for retail investors—adding to a losing position is wrong. Replenish only when in profit; never try to make up losses by increasing position size.

**Volume reflects the true market sentiment**. Watch for volume breakout at low levels; at high levels, if volume stagnates, it’s a sign to exit decisively.

**Trade only coins in an uptrend**. The 3-day moving average turning up indicates short-term upward momentum; the 30-day MA signals medium-term; the 84-day MA indicates the main upward wave; the 120-day MA shows long-term trend. Choosing the right cycle makes trading more effective.

**Review every trade**. Does your holding logic still hold? Does the weekly K-line match your judgment? Has the trend changed? Use review to continuously optimize your strategy. Systematic thinking is essential to navigate the fog of the market.