Having navigated the crypto market for many years, I’ve realized that the secret to stable returns is actually quite simple — it’s not about chasing huge profits, but about managing risk. Today, I’ll break down this replicable approach for everyone.

**Level 1: The Underlying Logic of Capital Management**

Dividing your trading funds into 5 parts is crucial. Only use one-fifth of your capital for each trade, with a 10% stop-loss set accordingly. From another perspective, even if you make 5 wrong calls, your total loss is only 10% of your principal (5×2%). But if your judgment is correct, set a take-profit of at least 10% or more to lock in gains. This pyramid-style risk management is the key to avoiding liquidation in the long run.

**Level 2: Following the Market Direction**

Many people fall into the trap of trading against the trend. Rebounds during a downtrend are often traps set by the main players to induce buying; the real buying opportunities are during pullbacks in an uptrend. The key is to identify the overall trend direction and trade along with it — this greatly increases your win rate. Blindly bottom-fishing or going against the wind almost always ends badly.

**Level 3: Picking Promising Assets**

Never rely on coins that surge dramatically in a short period. Mainstream coins are generally safer, but some small-cap coins tend to spike briefly and then enter a high-level stagnation, followed by a decline. What seems like a quick profit opportunity is often a trap for bagholders. Few coins can sustain multiple major upward waves; most people chasing high prices end up losing money.

**Level 4: Using MACD for Confirmation**

From a technical perspective, MACD is a useful auxiliary tool. When the DIF and DEA lines form a golden cross below the zero line and break above zero, it’s a buy signal; conversely, when MACD forms a death cross above the zero line and moves downward, it’s time to reduce positions or stay on the sidelines. No indicator is 100% accurate, but it’s valuable for confirmation.

Ultimately, there are no shortcuts in trading. The core of this method is: control individual trade risk, follow market rhythm, choose the right assets, and use tools for confirmation. Stick with it, and stable profits will come naturally.