Last year, I witnessed a real case around me: a friend rolled $10,000 in principal into $5 million. It wasn’t just dumb luck—he treated trading like an engineering project. He reviewed his trades daily, strictly followed his rules, and ultimately gained certainty over time.

His first iron rule was position sizing. He split his principal into five parts, only using one part at a time, risking at most 10% per trade, with a total account loss capped at 2%. If you do the math, you’ll see: even after five consecutive losses, you’d only lose 10% of your principal. But if you catch a single major rally, all previous losses are recovered and there’s profit left over. This is the foundation of compounding—never let yourself get liquidated and forced out.

Following the trend is easier said than done. When prices fall, people always want to bottom-fish; when they rise, they're afraid of a pullback, ending up getting slapped both ways. His approach was simple: don’t touch during a downtrend, and when it starts moving up, don’t rush to sell—wait patiently for the trend to play out. The market punishes the clever and rewards persistent effort.

He never touched coins that had skyrocketed. Those tokens that double in three days may look tempting, but they’re actually meat grinders. Major coins that rise too much will correct, and surges in altcoins are more often distribution signals. By restraining the urge to chase, you filter out most of the risk.

He used technical indicators but wasn’t superstitious about them. If the MACD gives a golden cross below the zero line, he’d try a small position; if there’s a death cross above the zero line, he’d reduce or exit. He also followed a counterintuitive rule: never average down on a losing trade, only scale up when in profit. Most people do the opposite—keep adding to losers and end up deeply trapped.

Volume was what he watched most closely. A breakout with volume at low levels often signals that the big players are entering; following that move usually means you get a piece of the action. Combined with watching the direction of the 3-day and 30-day moving averages, he could basically tell if a trend was starting. He didn’t chase hot topics, only traded assets with clear trends.

But the most ruthless part was his post-trade review. After every trade, he wrote a log: why he bought, where he went wrong, and whether anything changed on the weekly chart. Making money wasn’t about predicting price movements, but about gaining experience from every trade.

This approach isn’t complicated at all—the hard part is executing it day in and day out. In the end, the market rewards those who can stick to their discipline, withstand loneliness, and resist temptation.