1. The art of capital allocation: Divide your investment funds into five equal parts, and use only one part for each operation. Set a 10% stop loss line. Even if you make a mistake, the single loss is limited to 2% of the total funds. Even if you make mistakes five times in a row, the total loss is only 10%. Once you make a profit, set a stop profit point of more than 10%. With such a strategy, why worry about being trapped?

2. The wisdom of following the trend: The key to improving the winning rate is to follow the trend. In a downward trend, every rebound may be a trap to lure more investors; on the contrary, every pullback in an upward trend is a valuable opportunity to buy at a low price. So, is it easier to make a profit by blindly buying at the bottom, or is it safer to buy at a low price accurately?

3. Avoid the temptation of short-term surges: Stay away from those currencies that have soared sharply in the short term, whether they are mainstream or niche. History has proven that there are very few currencies that can sustain multiple rounds of main rising waves. After a short-term surge, they often face high stagnation and then enter a downward channel. Although the principle is simple, there are always people who try to challenge the probability.

4. Practical application of MACD: Use the MACD indicator to accurately capture entry and exit opportunities. When the DIF line crosses the DEA line and breaks through the 0 axis, this is a steady entry signal; on the contrary, if the MACD forms a dead cross above the 0 axis and moves downward, it should be regarded as a warning to reduce positions or leave the market.

5. Beware of the trap of covering positions: The term "covering positions" is actually the root cause of losses for many retail investors. Do not blindly cover positions when you are losing money, as this will only aggravate the losses and put yourself in a more passive position. The correct approach is to increase positions in a timely manner when you are making a profit to expand your gains.

6. The secret of trading volume: Trading volume is the lifeline of the digital currency market. A breakthrough with high volume at a low level often indicates the start of an upward trend, while a stagnation of high volume at a high level is a signal to retreat in time.

7. The essence of trend trading: Focus on currencies with an upward trend, which is a shortcut to increase your winning rate. By observing the turning direction of the moving averages of different time periods (such as the 3-day line, 30-day line, 84-day line, and 120-day line), you can clearly judge the rising trends of the short-term, medium-term, main rising waves, and long-term.

8. Importance of review: Conduct weekly review to check whether the logic of holding positions is still valid, whether the technical trend of K-line last week is consistent with expectations, and whether the market trend has changed. Adjust the trading strategy in time according to the review results to ensure that it resonates with the market.

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