There are profit opportunities in the cryptocurrency market, and following a systematic strategy can significantly enhance the probability of wealth growth. Here are seven core principles validated through practical experience:

1. Capital Management Principle

Divide total capital into five equal parts, and only invest 20% of the position in a single operation. Set a 10% mandatory stop-loss line; even with five consecutive misjudgments, the total loss is limited to 10%. Set a dynamic take profit point of over 15% for profitable positions to effectively avoid being trapped.

2. Key Points for Trend Assessment

1. Rebounds in a downtrend channel are often traps to entice buyers.

2. Pullbacks in an uptrend often present golden buying opportunities.

The accuracy of trend direction judgment directly determines the winning rate of trades, which should be assessed in conjunction with volume-price relationships and market sentiment.

3. Risk Avoidance Rules

Avoid targets with short-term increases exceeding 300% (including mainstream coins and altcoins). Historical data shows that less than 5% of projects can break through the three-wave rising cycle, and there is a common tendency for mean reversion after a sharp increase.

4. Technical Analysis Framework

MACD Indicator Application Guidelines:

- Establish the initial position when a golden cross breaks below the 0 axis.

- Execute a reduction in position when a death cross forms above the 0 axis.

This should be cross-validated with Bollinger Bands and RSI indicators.

5. Position Control Discipline

Prohibit averaging down on losing positions, while profitable positions can be increased in a ladder-like manner. The priority of capital protection is always higher than the expansion of profits.

6. Interpretation of Volume-Price Relationships

A breakout with increased volume at a low level (volume ratio > 3) is considered an effective breakout signal, and sudden changes in trading volume often indicate a trend reversal.

7. Trend Following Strategy

Select bullish alignment targets (5/30/60 day moving averages at a 45° upward angle), and focus on observing weekly moving average turning points; exit immediately if the trend breaks.

Review Mechanism:

1. Daily verification of the validity of holding logic.

2. Weekly validation of technical patterns at the weekly level.

3. Quarterly assessment for strategic adaptability adjustments.

In the eternal fluctuations of the market, the survival cycle of capital determines the final returns. Participate in the market with an acceptable cost of capital, seizing 2-3 bull market opportunities within a 3-5 year cycle, which constitutes a steady wealth appreciation path. #区块链 #币圈