Retail investors worldwide share a common ailment: when they incur losses, they cling on tightly, and as soon as they turn a profit, they rush to sell. They neither observe trends nor pay attention to trading volume, but only fixate on their small profits in the account. The correct approach is to operate in reverse: hold on to profits and stop loss when there is a slight loss exceeding 5% of the principal. My principles for taking profits and stopping losses are: take profits when gains reach 15% and fall back to 10%, and if it continues to rise, hold on; even if I operate 100 times with only a 50% win rate, following this principle can yield a 300% return. The challenge lies in overcoming greed and fear, knowing that action and thought must align, and remembering that the trend is king and one should act in accordance with it.

To judge trends, one can look at moving averages, which delineate bullish and bearish conditions. An upward trend indicates a bullish market, while a downward trend indicates a bearish one. For short-term trading, refer to the daily moving average and follow breakthroughs with increased volume; for medium to long-term trading, use the weekly moving average, entering on breakthroughs and exiting on breaks below. In unfavorable market conditions, stay out of the market; when the cryptocurrency market is trending downwards, do not easily attempt to catch a falling knife, and do not fantasize about profiting against the trend. When trading cryptocurrencies, focus on high probability opportunities, abandon low probability ones, and be courageous in admitting mistakes and stopping losses in a timely manner, as this is fundamental to survival, with its importance far exceeding short-term profits.

For short-term trading, pay attention to the 15-minute - 30-minute - 1-hour candlestick charts, use KDJ to find entry and exit points for the day, and leverage OBV to determine the intentions of major players. A washout with decreased volume and increased volume for selling, strong coins encountering risk announcements, short-term trading often involves low volume shakeouts, with potential for new highs to follow.