Many people say that Cryptocurrency Trading relies on luck, but that's not true. From getting liquidated to turning things around, there are patterns to follow.

First, let's talk about capital management—this is the first prerequisite for survival. Divide the principal into 5 parts and only use one-fifth to enter the market each time. This way, even if you make 5 mistakes in a row, the total loss will only be 10% of the principal. Set the stop-loss at 10 points and the take-profit at above 10 points, allowing the account to last longer. Yes, it's that simple and straightforward.

Let's talk about the trend-following issue. In a downtrend, every rebound is a good opportunity to trap people, while in an uptrend, every sell-off is paving the way for a gold mine. The problem is that many people get the direction wrong, resulting in repeated mistakes. Mainstream coins like $ETH followed this logic in previous years, experiencing several waves of major upward trends. However, coins that have surged sharply in the short term find it difficult to reach new highs again – they stagnate at high levels, cannot be driven up further, and naturally get slammed down.

How to look at the technical aspect? MACD is a good tool. When the DIF and DEA cross upwards below the 0 axis and then stand above the 0 axis, that is a relatively stable entry signal. Conversely, if a death cross forms above the 0 axis and moves downwards, then it should be considered to reduce the position.

The biggest pitfall - averaging down. How many people want to add to their positions when they're losing, and end up losing even more, only to regret it after getting liquidated? Averaging down while in a loss is like committing suicide with a knife. It should be the other way around; you should add to your positions when you're making a profit, as that's the correct logic for positive compounding.

The trading volume determines the authenticity of the trend. Pay close attention to coins like $LIGHT and $NIGHT when there is a breakout with increased volume during consolidation at low levels, but when there is increased volume during stagnation at high levels, it is essential to exit decisively, as this is a high-risk signal.

There is a simple standard for selecting coins: only trade in an upward trend, it requires less effort and has a higher success rate. A 3-day moving average turning upward is a short-term signal, a 30-day upward is a medium-term opportunity, an 84-day upward is the real main upward wave, and a 120-day upward indicates the start of a long cycle.

The last point – you must review after each trade. Does the logic of holding coins still hold? Has the weekly K-line trend deviated from the original intention? Has the trend changed? Timely adjustments are necessary to survive longer in this market.