Many people trading cryptocurrencies are increasingly losing money. The fundamental reason is very straightforward—completely relying on instinct to make random moves, with no trading system at all. When the market goes up, they fear missing out; when it drops, they try to buy the bottom. Both scenarios end up with the market wiping them out completely.

One trader started trading at age 20 and by age 23 had grown his account to eight figures. He says he's not endowed with extraordinary talent, but relies on a set of seemingly "simple" yet extremely effective methods. This approach has kept him from losing money for almost ten years.

**The first iron rule is to follow the trend.** During a downtrend, each rebound is just a trap to lure more buyers; during an uptrend, smashing the market is actually a way to accumulate shares. Most people get stuck here—they always want to go against the trend, trying to catch the bottom until their account hits rock bottom.

**The second rule is to stay away from coins with abnormal movements at high levels.** Whether it's mainstream coins or altcoins, once they surge rapidly, it's hard for them to develop a sustained trend. If you're still gambling on sideways movement at high levels, you're basically just throwing money away.

**On the technical side, MACD indicators are particularly practical.** A bullish crossover above zero is the safest entry point; when a death cross appears above zero, it's time to reduce your holdings. Many people find it troublesome, entering and exiting based on mood, and as a result, get repeatedly exploited by market makers.

**The fourth pitfall is averaging down.** Many regard averaging down as sacred, but the more they do it, the deeper they go into the pit. The correct approach is to only add to your position when you're profitable; when you're losing, you must stick to your guns and not make any moves.

**The last point is trading volume.** Volume is the true soul indicator—breakouts with volume at low levels must be followed, while volume stagnation at high levels indicates it's time to run. Reversing this logic reveals the core principle of trading.