I've been involved in cryptocurrency trading for six years, starting with 30,000 yuan and growing it to 1.8 million. Throughout the process, I never relied on luck. Instead, every step I took was based on strict position control—using only 30% of my capital to earn 60% profit.

I have taught this strategy to two retail investors. One gained 50% in two months, and the other doubled in three months. Today, I will lay out the complete logic so that regardless of the amount of capital, following the rules will ensure consistent profits.

**Divide your money into 6 parts, use only 1 part each time**

This is my core capital management rule. Set your stop-loss tightly at 6%. A single loss is only 1% of your total capital. Even if you make 8 consecutive wrong trades, your total loss is only 8%—leaving enough room for continued operation. As for take-profit, aim to earn at least 12 points before exiting. Earning more and losing less naturally prevents getting trapped.

**Profitable traders only think of two words: follow the trend**

In a declining market, rebounds? Mostly false signals. True opportunities appear during pullbacks in an uptrend. Many people like to buy the dip—that's gambling. The real low-buying is leveraging the trend. Small capital can't afford repeated tinkering; maintaining a steady rhythm is the key to survival.

**Stay away from coins that surge short-term**

Whether mainstream coins or altcoins, rapid increases are usually followed by a low-probability continuation to new highs. The likely outcome of buying at high prices is being trapped. Don't hold a "bet and turn around" mentality—that's the most common trap for retail investors.

**MACD usage is simple**

A golden cross below the zero line, breaking above zero, is a solid entry signal; conversely, a death cross above zero, heading downward, means you should cut your position decisively—no need to stubbornly fight the trend.

**Never add to your position when losing**

Adding to losing trades is a trap—this is the death trap for 99% of retail investors. When you lose, cut your losses promptly. When in profit, gradually add to your position to let profits compound. Reversing this order results in increasing losses.

**Volume is your sixth sense**

Watch for volume breakout at low levels. When volume surges at high levels with stagnation, it's time to run. Mismatched volume and price movements often indicate a trap set by the big players.

**Only trade coins in an uptrend**

When the 3-day moving average is rising, trade short-term. When the 20-day is rising, consider mid-term. When the 60-day is rising, the main upward wave is here. Don't waste time chasing falling coins—there are plenty of rising ones.

**Review your trades daily**

Check if your logic for holding coins still holds. Look at the weekly K-line chart to see the current trend. If the trend changes, adjust your positions accordingly—don't stubbornly hold. Small capital has the advantage of flexibility; make good use of it.

Ultimately, making money in the crypto space is never about daring to gamble but about knowing how to control your positions, wait for good opportunities, and cut losses in time. Small capital doesn't need to rush; follow the rules honestly, gradually grow your funds, and eventually, you'll be able to handle larger capital.