In the bloody storms of the cryptocurrency market, some leave with nothing, while others perform textbook-level wealth reversals. A seasoned player with eight years of experience leveraged a capital of 30,000 yuan to control assets worth 20 million, consistently achieving a 70% return each month, even helping his disciple double their assets in three months. These practical insights gained through real investment may be the key code for retail investors to break through in the market.

1. Position Management: The Offensive and Defensive Strategy of the One-Fifth Rule

"Divide the capital into five parts, using only one part each time." This seemingly conservative strategy is, in fact, the survival wisdom to traverse bull and bear markets. Setting a 10% stop-loss means that a single mistake only risks 2% of total capital; even with five consecutive wrong judgments, total losses can be controlled within 10%. Setting a profit-taking point of over 10% when making a profit allows gains to run within a controllable range. This 'small stakes for big wins' position management achieves a delicate balance between risk and reward.

2. Go with the Trend: The Ultimate Rule for Understanding Market Sentiment

In the cryptocurrency world, counter-trend operations are like catching flying knives with bare hands. Rebounds in a downtrend are often baiting traps, while pullbacks in an uptrend are the real entry opportunities. A certain mainstream coin, during the 2023 bull market, initiated a new round of skyrocketing prices every time it pulled back to the moving average support level, while investors blindly bottom-fishing were repeatedly trapped during the bear market rebounds. The market always validates a truth: those who follow the trend prosper, while those who go against it perish.

3. Beware of Skyrocketing Coins: The Deadly Traps Behind the Glamour

Whether it's the short-term surge of Bitcoin or the hundred-fold myth of altcoins, currencies that spike sharply in the short term often hide deadly traps. Data shows that 90% of skyrocketing coins face a halving market after stalling at high levels. A certain popular altcoin surged 500% in a week in 2024, followed by an 80% drop in the next two months, leaving countless latecomers with empty pockets. Remember: true major uptrends are rare, and the aftermath of a celebration is often vicious harvesting.

4. MACD Practical Application: The Precision Strike of Technical Indicators

MACD is not omnipotent, but it is a practical tool for retail investors. When the DIF line and DEA cross above the 0 axis from below, it often signals a trend reversal; while a death cross above the 0 axis indicates a shift from bullish to bearish. An investor once used this indicator to accurately capture Ethereum's bottom reversal in 2022, achieving a doubling of profits in three months. The essence of technical analysis is to convert market sentiment into quantifiable trading signals.

5. Restricted Areas for Averaging Down: The Life-and-Death Line for Profit Expansion

"DCA (Dollar-Cost Averaging) in a downtrend" is the most fatal misconception for retail investors. Averaging down in a downtrend is like struggling in quicksand, only sinking deeper. The correct approach is "profit expansion"—when holding positions are in profit, gradually increase the position size to amplify gains while avoiding being trapped. A certain trader used the "pyramid averaging method" during Bitcoin's uptrend, ultimately achieving a 20-fold increase in assets.

6. Volume-Price Relationship: The Silent Language of the Market's Soul

Trading volume is the pulse of the market. A low-level breakout with increased volume often indicates the main force entering the market; while a high-level breakout with stagnant prices signals capital fleeing. In 2023, a certain DeFi token surged 300% after a sudden tenfold increase in daily trading volume following half a year of sideways movement at the bottom; meanwhile, another coin continued to see increased volume at high levels without rising, plummeting 60% within two weeks. Understanding the volume-price code allows one to see through the market's true intentions.

7. Moving Average Hunting: The Time Rule of Trend Trading

Moving averages of different periods correspond to different levels of trends. The 3-day moving average captures short-term fluctuations, the 30-day moving average judges the mid-term direction, the 84-day moving average locks in the main uptrend, and the 120-day moving average grasps the long-term trend. An investor achieved a five-fold return during Bitcoin's 2024 bull market by using the '84-day moving average buying method' without changing positions. Choosing a suitable time frame is more important than frequent trading.


These battle-tested experiences soaked in blood and tears may not make you rich overnight, but they can help you survive longer in the turbulent market. In the cryptocurrency world, true winners are not short-term profiteers, but those who adhere strictly to discipline and respect the market as long-term investors. Remember: the accumulation of wealth is not an overnight miracle but a gradual practice.

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