People in the cryptocurrency circle may increase their value by 50 or 100 times overnight, or they may suddenly go to zero and have nothing.
Playing contracts in the cryptocurrency world is like playing with your heart; it's thrilling and more exciting than riding a roller coaster.
Have you ever experienced consecutive losses and frequent liquidations?
Then you feel frustrated and regret your decisions?
You are eager to recover your losses, but end up sinking deeper?
You fantasize about the scenes after success, but reality slaps you in the face time and again?
This is something every trader has experienced; you and I are no exception!
The difference is that some people give up under such torment, some lose all their principal, and very few persist. But what is the meaning of persistence without a complete realization?
I have watched countless tutorials, learned many traders' summaries, and analyzed countless reasons for failure! I summarized the following points, believing they can help you:
One, mindset and emotional management
Mindset and emotional management does not mean you cannot be happy when you profit and cannot be frustrated when you lose. It is not about being an emotionless robot!
Instead, it makes you firmly believe in your success, trust that the current losses are only temporary, and genuinely create a positive belief system. Secondly, when losses occur, you can maintain a rational and calm mind, avoid blindly placing orders, and correctly analyze and operate rationally. This is crucial!
Two, a constantly improving trading system
Remember, trading is not gambling, but it does have probabilistic attributes. You must continuously summarize and explore a trading system that suits you during long-term trading. Specifically, establish your trading rules in various dimensions such as indicator analysis, position size, take profit and stop loss, and short-term and long-term cycles, to constrain yourself and define your trading rather than being blind. Otherwise, you will fall into an endless loop!
Three, capital management
There is a saying, 'As long as there are green mountains, one need not worry about firewood.' You must never have the mindset of going all in; this is very dangerous. Because once you have this thought, in most cases, the market will fulfill it, making you completely give up! You must strictly control this point, summarize your maximum consecutive losses to manage your capital, and ensure you have a chance to turn things around. This requires extreme calmness; only when you still have chips do you have a chance to be reborn!
Four, technical analysis
This is crucial. If you have no technical skills at all, then you must not place orders, because that is gambling on luck, and you will definitely fail. This is very terrifying! Learning technical indicators is a gradual process, but if you overly rely on various indicators for your judgment, you may often find yourself confused, make frequent mistakes, and then doubt the technology. It is essential to find what suits you among so many indicators, simplifying complexity. Commonly used naked candlestick patterns, Bollinger Bands, moving averages, MACD, volume bars, OBV, etc., grasp the essence of simplicity!