Many people enter the futures market, only to keep losing money. Do you know why? Because they have no plan at all and just place orders based on feelings.

There is a trader who is 36 years old this year. He started in the crypto space at 28. After 8 years of trading in the crypto market, his assets have reached eight figures. Over these 8 years, he has summarized 7 ironclad rules, each earned through blood, tears, and money.

**Rule 1: Capital Division System**

Divide your principal into 5 parts, and only use one-fifth each time you enter a position. Set a 10-point stop loss—losing only 2% of your total funds if you make a wrong move once. Even if you make 5 wrong moves in a row, you only lose 10%. Conversely, if you are correct, set a take profit of more than 10 points. This approach significantly reduces the chance of being trapped.

**Rule 2: Trade in the Trend**

Want to improve your win rate? Two words: follow the trend. In a downtrend, every rebound is a trap; in an uptrend, every dip could be a golden opportunity. Compared to blindly bottom-fishing, buying on dips is the real way to make money.

**Rule 3: Avoid Coins with Explosive Rises**

Don’t touch coins that have surged rapidly in the short term, whether they are mainstream or small-cap coins. The logic is simple—after a short-term surge, it’s too difficult for the coin to continue rising. When a coin stalls at a high level, it naturally will fall. Many understand this principle, but some still want to gamble, and the results are predictable.

**Rule 4: MACD Indicator**

When the DIF and DEA lines form a golden cross below the zero line and break above zero, it’s a relatively safe entry signal. When MACD forms a death cross above zero and moves downward, it’s time to consider reducing your position.

**Rule 5: Volume and Price Indicators First**

Trading volume is the soul of the crypto market. Watch closely for volume breakthroughs during consolidation at low levels; if high volume appears during a stagnation at high levels, it’s time to exit decisively. Volume can lie, but price cannot.

**Rule 6: Only Trade Uptrend Coins**

Focus on coins in an uptrend, as this maximizes your chances of success and saves time. Check the moving average directions: a 3-day MA turning upward is a short-term bullish signal; a 30-day MA turning upward indicates a medium-term uptrend; an 84-day MA turning upward suggests the main upward wave has started; a 120-day MA turning upward indicates a long-term upward trend.

**Rule 7: Weekly Review System**

Stick to weekly reviews to check if your holding logic has changed, whether the technical patterns still match your initial judgment, and if the trend has reversed. Adjust your trading strategy promptly.

This methodology has been tested in the market for 8 years, and each rule is meaningful. If the market is coming and you still don’t know how to operate, these 7 rules should guide you.