After years of navigating the crypto world, some trading principles have become increasingly clear. Today, I’ll share those proven rules openly—no beating around the bush—this methodology has turned an initial capital of 50,000 into over 50 million, and the core is two words: discipline.

**Underlying Logic of Position Sizing**

Divide your total funds into five parts, and only move one-fifth at a time. Sounds simple, but this is your defensive armor. Set a hard stop-loss at 10 points; each loss at most accounts for 2% of your total capital. Five consecutive losses? That’s only a 10% total loss. Conversely, aim for a take profit of over 10 points, earning more than 2% on a single trade. Playing long-term like this, the odds will favor you.

**Following the Trend Is the Premise for Survival**

Rebounds in a downtrend are traps; only pullbacks in an uptrend are opportunities. This principle must be ingrained in your trading bones. Don’t go against the trend—that’s a common mistake among retail traders. Main upward waves require many conditions to align; coins that can sustain continuous rises are rare. Those that surged wildly in the short term, whether mainstream or small-cap coins, should be avoided lightly. High-level stagnation and inability to push higher naturally lead to declines—this logic is cold but certain.

**Practical Use of Technical Indicators**

MACD is sufficient—don’t overcomplicate. Key signals are straightforward: when DIF and DEA form a golden cross below the zero line, then break above zero, it’s a green light to enter. The opposite is also direct—when a death cross occurs above zero, immediately reduce your position and exit. Don’t hesitate. Indicators are tools; obey your trading plan.

**Adding Positions Is a Big Pitfall**

This term has harmed too many people. When losing, adding more only deepens the trap; when profitable, that’s the right time to increase. The rule is ironclad: no adding during losses, only add during profits. Violating this rule usually means paying tuition.

**Volume-Price Relationship Is the Key to Trading**

A sudden volume surge during a low consolidation? Keep your eyes wide open. High volume at a top that doesn’t rise? Turn around and run—don’t fight the market. The cooperation between volume and price determines the reliability of the trend.

**Observe Trend Lines Across Multiple Timeframes**

3-day moving average turning upward indicates short-term potential. 30-day moving average turning upward suggests medium-term involvement. 84-day turning upward signals a strengthening main upward wave. When the 120-day turns upward, the long-term trend is confirmed. For mainstream coins like $BTC and $ETH, the more signals from different timeframes align, the higher your win rate.

**Always Review Every Trade**

Does your entry logic still hold? Is the weekly technical trend correct? Has the trend direction changed? These questions must be asked every time. The market is dynamic, and your strategy must be adjusted accordingly—stubbornness won’t last long in crypto.

**Underlying Thinking > Luck**

Turning 50,000 into over 50 million isn’t about luck in one or two bull markets; it’s about trading by the rules every time. Achieving a 70% monthly return isn’t a dream if you truly master this logic. Position management, stop-loss and take-profit, riding the trend, technical indicators, volume-price relationship, review mechanisms—none can be missing. The market is always there; it’s how you interact with it that matters.