I've seen this happen too many times: some people spend half a year grinding through classic textbooks on technical analysis, but their account balances just keep heading south; meanwhile, others never even touch things like MACD or KDJ, relying on a few simple, almost clumsy principles, and somehow manage to multiply their principal several times over.

Recently, I helped a friend trade. Starting capital was 4,200, and in just over two months, it grew to 68,000. Throughout the whole process, I didn't draw a single trendline or look at any technical indicators—instead, I used nothing but "counterintuitive" dumb methods. Today, I'm going to break down this approach. For those who can take it in, you'll at least avoid most of this year's loss traps.

**Iron Rule 1: Your position size is your lifeline—don't be a full-position hero**

When this guy first approached me, the first thing he asked was, "Which coin should I go all in on?" I told him straight up: unless the market gives a clear signal, anyone going all in is either an absolute genius or just here to give money away.

My approach is this—when the trend isn't clear, I'll test the waters with at most 10-20% of my capital, treating it as tuition to get a feel for the market's temperament. Once the price breaks through a key resistance level and holds the support on a pullback, that's when I scale in, adding up to 50-60% of my capital in batches.

Think about it—how many people get wrecked because they're in a hurry? They see a small rebound and think a bull run is starting, so they go all in, only for the price to reverse and wipe out half their principal. Crypto is extremely volatile; giving yourself some wiggle room is like leaving yourself an escape route. Otherwise, when a black swan event hits, you won't even have time to react.

**Iron Rule 2: Don't average down on losing trades, but hold on to your winners**

This guy used to do this a lot too. When the coin he bought dropped 5%, he'd immediately ask me, "Should I buy more to lower my average cost?" I told him straight up: