I’ve never believed in those complicated technical theories. Trading is actually that simple—if you get the direction right, you can blow up your account due to poor position management; if you get the direction wrong, you can still survive thanks to risk control. Half a year ago, a trader came to me with only $900 to consult. I didn’t recommend any advanced indicators, just taught him a straightforward trading method. Three months later, his account had increased tenfold. Today, I will clearly explain the core logic of this method, especially suitable for those who want to avoid frequent liquidations and pursue long-term steady gains.

**First Trick: Three Funds Doing Their Own Jobs**

90% of losing traders fail because of poor capital allocation. My approach is to split the principal into three parts, each operating independently.

**Short-term Trading Fund (300U)—Pursuing Volatility Arbitrage**

Focus only on ETH, with at most two orders per day. The key is strict stop-loss; once the loss hits -3% of the cost, cut immediately. This isn’t a greedy game. When a 5% profit appears, take half of the principal to lock in gains, and let the remaining part trail with a moving stop-loss to ride the trend. Many think watching the screen is smart, but emotions often lead people into traps. Trading by rules is a hundred times more reliable than relying on feelings. The essence of short-term trading is to eat volatility; don’t expect to get rich in one shot.

**Trend Trading Fund (300U)—Follow Big Trends Only**

Use this fund entirely for BTC, but focus on the weekly chart. Don’t act until the daily moving averages form a bullish alignment. Wait for a volume breakout above the previous high and a bullish close—that’s the real trend initiation signal. Once confirmed, open a position, and when profits reach 30%, withdraw the principal to reduce psychological pressure. Keep a 10% trailing stop on floating profits to let gains run. The most profitable market opportunities are hidden in big trends, but you need patience to wait for signals and avoid chasing high on hype.

**Emergency Reserve Fund (300U)—Lifeline in Critical Moments**

Don’t touch this fund during normal times. Only activate it in two situations: one, when the account is close to liquidation and needs margin; two, when rare extreme opportunities appear in the market and require adding positions. Separating out the emergency fund ensures that no matter how much you tinker with short-term and trend positions, you won’t completely blow up your account. Having this safety net in mind makes you more confident to operate.

**Second Trick: The Iron Rules of Stop-Loss and Take-Profit**

The harsh truth in trading is: making fewer mistakes is more important than chasing perfect returns. Strict stop-loss means small losses. Regular take-profit means preserving gains. Combining both allows you to survive longer. Many people set their stop-loss too loosely; one big loss can wipe out ten small profits.

**Third Trick: Mindset Management Is More Critical Than Technique**

I’ve seen many traders with decent skills but who lose everything because of their mindset. They either chase a big move ignoring risk control or panic and cut losses during floating losses. Follow your plan and don’t change your strategy because of short-term fluctuations. The simplest and most straightforward methods are often the most effective.