Having played crypto for seven years and seen many people make money, the most impressive is a seasoned trader who turned 50,000 yuan into over 50 million. There are no fancy tricks—just a straightforward "50% position size steady trading" approach. This guy's average monthly return is around 70%. His apprentice followed for three months, and their funds doubled. Today, I’ll break down the core logic of this method, which is worth studying carefully.

**First Block: The Firewall of Capital Management**

Dividing your funds into five parts is fundamental. Only risking one-fifth of your position each time you open a trade allows room for maneuver. Set the stop-loss at 10%, with single-loss not exceeding 2% of total capital. Calculations show that even five consecutive losses, the overall account would only shrink by at most 10%, keeping the blood flowing. Conversely, if the judgment is correct, set a take-profit at over 10%—don’t be greedy and wait for a pullback. The essence of this approach is "small losses for big gains," focusing on long-term survival rather than gambling for a quick turnaround.

**Second Block: Going with the Trend Is the Key**

This is often overlooked. The rebounds during a downtrend are usually traps set by the big players to lure retail investors in; the real opportunity is during pullbacks in an uptrend. Catching the bottom sounds tempting but has a very low success rate. Buying the dip in an uptrend is a more reliable way to profit steadily. Simply put, the trend is your friend—traders fighting against it usually end badly.

**Third Block: Beware of Short-Term Parabolic Rises**

Mainstream coins or small altcoins, after a rapid surge, often crash sharply. Especially when there's no volume at high levels and funds can't continue the relay, a decline is inevitable. Don’t keep thinking "it will go up a bit more before selling"—that’s the biggest trap for retail investors. Opportunities always exist in the market, but your capital is limited. Once lost, it’s gone forever.

**Fourth Block: How to Use the MACD Indicator**

When DIF and DEA form a golden cross below the zero line and then break above zero, it’s a relatively safe buy signal. Conversely, when MACD forms a death cross above zero and starts heading down, consider reducing your position. But remember, indicators are just tools; they must be combined with trend analysis. Relying solely on indicators will eventually lead to disappointment.

**Fifth Block: The Binary of Adding Positions and Stop-Loss**

Many retail traders lose because they keep adding to losing positions. The more they lose, the more they add, exponentially increasing risk—this is self-destructive. The correct approach is the opposite: add to winning trades to let profits compound, and cut losses quickly when wrong. The market always rewards those who follow the trend; there’s no mercy for gamblers.

**Sixth Block: Volume-Price Relationship Is the Core of the Core**

A volume breakout at a low level is a reliable entry signal; high-volume stagnation at a top indicates it’s time to exit. Volume reflects the true state of the market. Ignoring it in technical analysis is just talk on paper. Many only look at candlestick patterns and treat volume as decoration—resulting in being trapped, which is well-deserved.

**Seventh Block: Review Is the Only Way to Optimize Strategies**

Spend some time weekly reviewing your holdings and technical analysis to see if the trend still aligns with expectations. The market is dynamic, and strategies must be adjusted accordingly. Sticking rigidly to one method leads only to dead ends.

There are no shortcuts in crypto, but there is a methodology. Using systematic thinking to trade, rather than relying on luck, is the difference between turning 50,000 into 50 million.