Trading for 7 years, with funds growing from 20,000 to over 30 million, my trading system always revolves around a core principle: five-part position management, steady and prudent.

This method allows me to achieve an average monthly return of 70%, and traders I’ve mentored have doubled their accounts within three months. Today, I want to share this fully tested position management philosophy.

**The Power of Position Allocation**
Divide your funds into 5 parts, entering only one-fifth each time. What are the benefits of this approach? If you set a 10-point stop loss, a single mistake only costs 2% of your total capital. Even five consecutive mistakes would only result in a 10% loss. Conversely, if your take profit is set above 10 points, your chances of making money increase significantly.

**Trend is King**
How to further improve your win rate? Two words—follow the trend. Every rebound during a downtrend is a trap for more losses, and every pullback during an uptrend could turn into a golden opportunity. Buying on dips has a higher probability of profit than trying to catch the bottom, which many people don’t understand.

**Avoid High-Position Coins**
Coins that have surged rapidly in the short term, whether mainstream or small-cap, should be avoided. Opportunities for multiple major upward waves are rare, and after a sharp rise, further increases become more difficult. When a coin is stuck at a high level and shows stagnation, it’s hard to push it higher later, and it will naturally decline. The logic is simple, but some still want to take a gamble.

**Technical Indicators as Reference**
MACD is a useful tool. When DIF and DEA form a golden cross below the zero line and break above zero, it’s a sign to enter the market confidently. When MACD forms a death cross above zero and moves downward, it’s a signal to reduce your position.

**The Biggest Pitfall: Losing and Adding More**
Adding to a losing position has ruined many retail traders. The more you lose, the more you add, and the more you add, the more you lose—this is the most taboo practice in trading, pushing yourself toward disaster. Remember this iron rule: never add to a losing position; only add when you’re in profit.

**Trade Only Rising Assets**
The most reliable and time-efficient approach is to only trade assets in an uptrend. A turn upward on the 3-day chart signals short-term upward movement; the 30-day chart indicates medium-term; a turn on the 84-day chart marks the main upward wave; and a turn on the 120-day moving average signifies a long-term upward trend.

**Review is a Must**
Every trade must be reviewed. Check whether your holding logic still holds, whether the weekly K-line trend matches your previous judgment, and whether the trend has changed. Adjust promptly to survive longer in the market.