In the crypto market, what kills most investors is not small capital, but the reckless way of betting.

I have witnessed many people:
– All-in just because of a green candle
– Holding losses in hopes that 'it will come back'
– The more you lose, the more you invest; the more you invest, the more you burn

After many years of struggling, I have developed a trading system that doesn't require genius predictions, just following the right process – lose less when wrong, gain a lot when right.

Here are 8 core principles that help me and many colleagues in the team survive and grow steadily in this market.

1. Divide Capital Into 5 Parts – Never Bet On A Life-or-Death Battle

The first principle: each order should only use 1/5 of total capital.

– Fixed stop-loss of about 10% for each order
– If one order is wrong → lose 2% of total account
– Continuously wrong on 5 orders → still only lose 10% of total capital

Meanwhile:

– When right, take profit larger than stop-loss
– Just need an average win rate, the account still grows

👉 With this method, it’s very hard to fail, but there is an opportunity to survive long to win big.

2. Trade in the Direction of the Trend – Don't Fight the Market

The market only has 2 main states:

– Downtrend: every rebound is a long bait trap
– Uptrend: every correction can be a “golden pit”

Don't try:
– To catch the bottom when the trend hasn't changed
– Short the peak when the market is in strong euphoria

👉 Trading in the trend helps you not need to be too skilled, the market will pull you in the right direction.

3. Stay Away From Recently Hot Coins

A classic mistake of newcomers:

“It just surged, it must go up more”

In reality:
– Coin surging sharply in a short time → very low probability of continuing to rise
– Liquidity gradually weakens → cannot pull up → sell off

👉 Don't FOMO, whether it's a big coin or an altcoin.

4. MACD Is Not For Prediction, But For Confirmation

Using MACD correctly will be extremely effective:

– Buying safely:
DIF crosses above DEA below the 0 axis, then breaks the 0 axis upwards

– Reduce position:
MACD creates a peak above the 0 axis, then cuts down

👉 MACD does not help you buy the bottom, but helps you buy in the right trend.

5. Absolutely Do Not Average Down When Losing

“Averaging down” is the trap that causes countless accounts to freeze.

– Loss → additional capital
– Additional loss → supplement again
– Finally: capital stuck, lost liquidity

The vital principle:

Only increase position when there is profit, never when losing.

6. Price Can Deceive People, But Volume Cannot

In crypto, volume is the soul:

– Price at the bottom + strong volume increase → notable signal
– Price at the top + large volume but cannot rise → should exit

👉 No volume, every pump is unsustainable.

7. Only Trade Coins That Are in an Uptrend

Use moving averages to filter coins:

– 3-day MA trending up → short-term increase
– 30-day MA trending up → medium-term increase
– 84-day MA trending up → main phase
– 120-day MA trending up → long-term trend

👉 Only trade when at least the medium-term is supportive.

8. Every Order Must Be Reviewed Again

After each transaction, ask yourself:

– Is the reason for entering the trade still valid?
– Is the weekly trend changing?
– Did I make a mistake due to the market or due to breaking discipline?

👉 There are no meaningless losing orders, only those who do not learn from experience.

Conclusion: Crypto Is Not a Quick Way to Get Rich, But It Can Be a Sustainable Path to Wealth

You don't need:
– To predict every peak and trough accurately
– To trade day and night without sleep
– Or have a huge capital

You only need:
– Strict risk management
– Trade in the direction of the trend
– Survive long enough to meet the big cycle

📌 In crypto, the ultimate winner is not the most reckless, but the one who still has money when real opportunities arise.