Many people in the crypto world tend to get more flashy in their pursuits, but the more flamboyant they are, the easier they are to be slapped in the face by the market. The secret to gradually growing my principal over the years is actually very simple—it's a trading system that may seem unremarkable but can be executed effectively.

## First, Understand the Market

When the market experiences a sharp pullback, a key detail is: the decline of the coins you hold is much smaller than the index, indicating that there is capital bottom-fishing. Such coins don't need to be hurriedly cleared out; there are usually opportunities later. Conversely, those that are dumped along with the market? They generally have little value worth holding onto.

## Trading Logic Is That Simple

For short-term trading, I focus on one signal: if the price stays above the 5-day moving average, keep holding; once it falls below, exit immediately. For a slightly longer cycle, look at the 20-day moving average—hold when above, sell when below. The rules are this straightforward. Many people fail because they have too many rules and can't stick to them consistently.

When a coin enters a clear upward structure without abnormal volume spikes, this is the stage most worth entering. If volume increases during the rise? Keep holding. During a pullback with decreasing volume and no structural breakdown? No need to panic. But once volume surges downward and breaks key levels, reducing your position immediately is the only response.

## Hard Rules Without Mercy

If you haven't exited within three days of buying and the expected move hasn't occurred, proactively exit—no exceptions. If the trend reverses and losses reach 5%, cut your losses immediately—don't give yourself any chance to bargain. Delaying will only turn small losses into bottomless pits.

Coins that have fallen over 50% from high levels over several days are often a sign of excessive emotional release. A rebound could happen at any time. But the premise is strict position control; it's definitely not a full-blown gamble.

## The Secrets to Picking Coins

I only focus on strong assets. When strong coins rise, they do so quickly, and even during pullbacks, they tend to have better support at the bottom. Don't be fooled by low prices into thinking you're "getting a bargain," and don't get scared just because they've risen for a while. The key is to follow the most powerful market direction.

The entry point isn't about the lowest price but whether the position is reasonable. Once the trend deteriorates, giving up in time is much smarter than stubbornly holding on. This is the most overlooked yet most profitable choice in trading.

## The Most Overlooked Deadly Point

One or two profits don't make you invincible. After each operation, review your trades—distinguish whether it was luck or your system. When you're unsure, holding cash is itself an active trading decision.

The primary goal of trading is to stay alive; making money is the second. This order must never be reversed.