After ten years in the cryptocurrency world, with six years as a professional trader, over 3100 days. I've done long-term, short-term, ultra-short, and swing trading; I've tried almost every type of method, so I have a say on this issue. I've always said that mastering a skill requires the ten-thousand-hour rule; eight hours a day, over 200 days a year reviewing, that's about five years, and that's just the beginning of the foundation for stable profits. There will definitely be big pitfalls within ten years, so for safety's sake, do not put your principal beyond your capability within ten years. Many experts who have turned tens of thousands into hundreds of millions have just opened contracts with a large multiplier; many of them have died in a bear market, but you just don't know it. Human nature tends to make people lose the ability to judge correctly in the face of major trends.
Returning to the main topic, I would like to share with you all:
In the cryptocurrency world, it's hard to change others, and it's hard to change ourselves; but only by changing ourselves can we have hope! Changing others is difficult, and changing ourselves is also hard; but only by changing ourselves can we have hope. The financial market never has 'what ifs', only results! If we can't achieve results in cryptocurrency trading, we must have done something wrong; if we can continuously achieve results, we must have done something right, that's all. Our way of thinking affects our behaviors every day, and our daily behaviors bring about the final results. Losing money is not scary, but we must find the real reasons that caused the loss, resolve to change immediately, and that can help us turn losses into profits. Ignoring problems, avoiding them, and not addressing them head-on is the most terrifying thing. Everything has a cause and effect; plant good seeds to reap good fruits, plant bad seeds to reap bad fruits. Our current situation is entirely derived from every decision we've made before. Regardless of the results, good or bad, we must bear them; in the adult world, once a choice is made, even if it's wrong, we must walk through it on our knees. When it comes to the final results corresponding to each person, we must see if we can accept and face them calmly. In the adult world, we must never pretend that the process is very hard, because the final result will not perform for us. We must often learn to reflect and summarize in our daily lives; maintain progress on the good aspects and change the bad ones immediately. Given time, we will all improve. Trading in cryptocurrency is the same; we must abandon the mentality of luck, abandon the desire for quick wealth or speculation, and abandon every trade outside our capability and understanding. Before each trade, we should ask ourselves if we understand it, if we have a solid basis for our trading decision, if we have a good strategy, a sound risk control system, and whether we can accept failure, etc.! Clearly identifying our capabilities is an essential element for us to be qualified investors. As long as we want to change, any time is just right!
The essence of trading is: cut losses when wrong, hold on when right, small losses lead to big gains, and aim for large profits and losses. Specifically for each core aspect: Follow the trend: find a simple moving average to divide long and short positions; go long above it and short below it. Opening a position, testing position: act in accordance with the trend, follow the major trend while countering the minor trend; when entering the market, consider a potential sufficiently large risk-reward ratio. At this position, if wrong, the stop loss is small, but if right, the profit is large, usually at the trend bottom or early stage. Opening a position, stop loss: if a key point is breached, a stop loss must be executed, no room for luck. If the price comes back, opportunities can be found to enter again. Do not have a lucky mindset, thinking that holding on might help recover losses, and do not average down on losses. Adding positions: add to profits; adding positions is key to making big money. After the price rises as expected, if it retraces at the support level or breaks through previous highs, add positions, follow the major trend while countering the minor trend. After adding positions, set a stop loss at the new key point. The base position is already safe; only the added position carries the stop loss risk. If it fails, stop loss the added position and wait for the next opportunity. If it continues to rise, hold firmly, continue to wait for a retracement to add positions, and keep moving the stop loss. Until the last movement is stopped out or a head signal appears to take profits. Taking profits: Never easily take profits; this is key to making big money. Exit can be in batches or all at once, preferably all at once, as it allows you to wait for the highest probability head signal. If it's right-side trading, floating profits will definitely retrace; this must be accepted mentally. Do not think about selling at the highest point, or regret not selling at the highest point and feel like you have to wait for the highest point to sell. As long as you can grasp and follow these principles in practice, and maintain consistent discipline, you will find that making money is a natural thing.
