Seven years of trading cryptocurrencies have seen many people suffer losses, and a few tough traders turn things around. One big brother used a "50% position steady trading method" to grow from 50,000 yuan to over 50 million, with an average monthly return of about 70%. Even more impressive, his apprentice followed this method, and their funds doubled in just three months. Today, I will break down the logic of this system.

**Capital Management and Stop Loss Are the Most Critical**

Divide your funds into five parts, investing only one part each time. What are the benefits of doing this? Set the stop loss at 10%, controlling each trade's loss to 2% of the total capital. Even if you hit five consecutive stop losses, the total loss is only 10%, leaving room for a comeback. Conversely, set take profit at over 10%, creating a favorable risk-reward ratio. The core logic is to use small losses to gain big profits, which is essential for long-term survival.

**Trend Judgment Must Recognize the Direction**

Rebounds in a downtrend are mostly trap trades, while the real golden opportunities are in pullbacks within an uptrend. Many people like to buy the dip, thinking it's a good chance, but the win rate is extremely low. Buying the dip in an uptrend is a safer way to make money. In one sentence: trend is your friend; trading against the trend yields poor results.

**Avoid Coins with Short-Term Explosive Rises**

Whether it's mainstream coins or small tokens, after a sharp short-term surge, a big correction usually follows. High-level stagnation indicates insufficient capital support, and the probability of decline is very high. Don't think "it will go up a little more and then sell"; market opportunities are plentiful, but the key is having enough capital.

**Use MACD for Technical Confirmation**

When DIF and DEA form a golden cross below the zero line and break above zero, it's a stable buy signal; when MACD forms a death cross above zero and moves downward, it's time to reduce positions. But indicators must be used in conjunction with trend analysis; relying solely on indicators is self-deception.

**Add Positions at the Right Time**

Adding to losing positions is the root cause of retail traders' losses. Increasing positions during losses amplifies risk and is a big taboo. Only adding when in profit can expand gains. The market always rewards those who follow the trend and punishes those relying on luck.

**Volume Is the "Soul"**

A volume breakout at a low level is worth paying attention to; high-volume stagnation at a high level suggests it's time to exit. Volume reflects the true market sentiment. Ignoring volume in technical analysis is just fooling yourself.

**Regular Review Is Very Important**

Review your holdings weekly: does the technical outlook still meet expectations? Has the trend changed? The market is always moving, and strategies must adapt accordingly. Sticking to the same plan will eventually lead to failure.

There are no shortcuts to trading cryptocurrencies—only methodologies. Systematic thinking is the key to navigating bull and bear markets. This 50% position method is a tool to achieve stable returns.