Many people in the crypto world lose money, and it's often not a technical problem but thinking too much and changing too frequently.

I spent four years moving from frequent liquidations to stable profits, relying on a mechanically executed trading system. It's neither too difficult nor too simple—just these four steps. Beginners who follow them strictly can generally avoid the major pitfalls in the market.

**Step 1: Choose coins based on MACD, only recognize golden crosses above the zero line**

A daily MACD shows a golden cross above the zero line, indicating an established bullish trend. This is a very clear signal that main funds are entering. I reviewed historical data, and the success rate of such signals exceeds 68%.

For example, in April 2024, after Ethereum's golden cross above the zero line, it surged 40% within three weeks. Conversely, golden crosses that appear below the zero line are 90% false signals, so I avoid them completely.

**Step 2: The 20-day moving average is the life and death line**

If the price can stay above the 20-day moving average, it's a sign to consider adding to your position. If it falls below this line, close all positions unconditionally—don't hold any hope. This line is the dividing line between bull and bear markets; breaking below means main funds are retreating.

Don’t fall in love with the trend; if the direction is wrong, admit defeat.

**Step 3: Divide your position into three layers, let profits run**

When opening a position for the first time, do not exceed 50% of your capital. The precondition is that the "price breaks through a key moving average with volume"—for example, Bitcoin breaking above $60,000 with volume.

When profits reach 40%, take profit on one-third of the position; at 80%, take another third; leave the remaining position with a trailing stop to let profits run. If the price falls below the 20-day moving average, close all positions immediately—no illusions.

**Step 4: Stop-loss should become an instinct, like breathing**

Single trade losses must be controlled within 5% of your capital—this bottom line must not be broken. Data shows that 87% of liquidations come from the deadly "wait and see" mentality. When the price breaks support, cut your losses. Even if there's a V-shaped rebound later, don't regret it—surviving is the only way to wait for the real trend.

The biggest danger in crypto isn't missing a wave but losing control of your own hands.

This method may seem a bit simple, but it's precisely this "simplicity" that uses rules to lock down human weaknesses. When you stop obsessing over individual gains and losses and develop the habit of "execute when the signal triggers," the power of compound interest will naturally carry you to the other side.