Global retail investors share a common issue: when they incur losses, they hold on tightly; as soon as they turn a profit, they rush to sell. They neither observe trends nor pay attention to trading volume, fixating only on that small profit in their account. The correct approach is to operate in reverse: hold on to profits steadily, and if there is a slight loss exceeding 5% of the principal, stop loss. My established principle for taking profits and cutting losses is: take profits at 15%, and if it drops back to 10%, then take profits; if it continues to rise, hold on. Even operating 100 times with just a 50% win rate, following this principle can yield a 300% return. The difficulty lies in overcoming greed and fear; one must know to align actions with thoughts, always remember that trends are king, and act in accordance with the trend.

To judge trends, one can look at moving averages. Moving averages differentiate bullish from bearish; upward indicates a bull market, downward indicates a bear market. For short-term trading, observe the daily moving average; follow the breakout on increased volume. For medium to long-term trading, base decisions on the weekly moving average: enter on breakouts and exit on breakdowns. In unfavorable market conditions, hold cash; if the cryptocurrency market is trending downwards, do not easily attempt to catch the bottom, and do not fantasize about profiting against the trend. When trading cryptocurrencies, focus on high probability events, abandon low probability ones, and being willing to acknowledge mistakes and stop losses in a timely manner is fundamental; its importance far exceeds the significance of momentary profits.

For short-term trading, pay attention to the 15-minute - 30-minute - 1-hour K-line charts, using KDJ to find entry and exit points for the day, and employing OBV to gauge the intentions of major players. A washout with decreased volume followed by an increase in volume for selling indicates that strong cryptocurrencies may face risks. Short-term movements are often characterized by reduced volume and consolidation, with the possibility of new highs to follow.