After a few years in the crypto space, I’ve seen too many people go all-in without thinking and end up losing everything. Today I’m sharing a trading framework that I’ve personally tested in practice. I can’t promise it will make you 100% profitable, but at the very least, it’ll help you survive longer.

**Let’s talk about capital management first**
Don’t put all your eggs in one basket—it’s an old saying, but it really works. I usually split my principal into 5 parts, and I never use more than 1 part per trade. I set my stop loss at 10%; even if I pick the wrong direction, the most I lose per trade is 2%. You’d have to hit 5 bad trades in a row to lose 10%, but as long as you catch a single move of more than 10%, you can make up the losses. The core of this approach is to give yourself enough chances to learn from mistakes.

**Trading with the trend is the right way**
Most rebounds during a downtrend are bull traps; most pullbacks in an uptrend are good opportunities to enter. A lot of people like to bottom fish, thinking if they catch the bottom, it’s easy money—the problem is, you’re more likely to catch a falling knife. Following the trend may not be as exciting, but it’s a lot more reliable.

**Don’t touch coins that have just surged**
Whether it’s a major coin or a small cap, there are very few that continue to climb after a short-term spike. Once a coin’s price skyrockets, it becomes exponentially harder to push it higher. After some sideways movement at the top, a drop is highly likely. Everyone knows this, but when the time comes, there are always people who rush in thinking “what if it keeps going up,” only to get stuck at the peak.

**You have to know how to use the MACD tool**
I often use MACD for confirmation. When the DIF and DEA lines form a golden cross below the zero line and then break above it, it’s generally a good time to consider entering. If MACD forms a dead cross above the zero line and starts trending down, you need to be careful—reduce your position if needed, and don’t get greedy for that little extra profit.

**Never average down on a losing position**
This is a painful lesson. Averaging down has ruined too many retail traders—the more you lose, the more you add, and the deeper you sink, until you’re forced out entirely. Remember this rule: only add to winning positions to let your profits run; holding or averaging down on losses will only dig you into a bigger hole.

**Volume and price matter more than candlesticks**
Volume directly reflects where money is actually moving. If a coin consolidates at a low and then breaks out with high volume, it means capital is entering and it’s worth focusing on. But if you see high volume at the top without price increases, that’s a sign money is leaving—when that happens, it’s time to get out.

**Daily reviews are essential**
After each trading day, you must spend time reviewing: check if your thesis for each position has changed, look at weekly charts to see if price action matches your expectations, and judge whether the trend is deviating. Adjust your strategy based on these reviews so you can keep optimizing your trades and avoid making the same mistakes twice.

This approach sounds simple, but actually sticking to it requires a lot of discipline. The crypto space is full of overnight riches stories, but the ones who survive in the long run always rely on risk management and discipline.