As a retail investor, you must understand the true meaning of the coexistence of risks and opportunities. Apart from mastering your own fate, no one can take charge of your destiny. Retail investors who place their hopes in others are destined to fail.
Learning is the foundation of success; mastering techniques and analyzing public information is essential for long-term survival in the cryptocurrency market.
Skills are about mastering one or two technical indicators' intrinsic meanings and interpreting the inner rules of the cryptocurrency market.
It is organically combined with operational strategies, serving as a tool for gambling in the cryptocurrency market.
Of course, to achieve stable profits, in addition to solid skills, these ten iron rules must also be kept in mind!
1. Don't let unrealized profits turn into losses. Once there is more than three points of unrealized profit, set a protective stop-loss near the opening price, never lose your principal.
In the cryptocurrency market, a three-point rise is quite easy, especially for small altcoins. At this time, you can slightly enlarge your take-profit point and use a trailing stop-loss, especially during a bear market; actively taking profits is a must to protect your gains.
Normal people can't stand the feeling of turning unrealized profits into losses. Initially happy about the profits, thinking about how to use that money for purchases, but soon after, unrealized profits turn into unrealized losses, the feeling of falling from heaven to hell. Those without strong mental fortitude can't handle it; emotions are easily influenced, affecting your decision-making ability and leading you to make foolish decisions. By the time you wake up to reality, your account balance is basically gone, with no regrets left.
2. Don't let small gains lead to large losses!
It's like playing at a casino: today I go up, win 500 with 100 or 200 chips, and I’m satisfied, so I retreat. The next day I win another 500, and I retreat again, feeling happy. By the third day, it’s not going so well; I go up and lose 500. Unwilling to accept defeat, I keep betting, aiming to recover my losses, and bet 500, but I lose 1000. I’ve lost the profits from the previous two days, and still, I’m not willing to give up, so I continue betting, throwing chips worth 500 or 1000 without care, ultimately losing tens of thousands. This is a typical case of winning a small amount and losing a large one.
2. Embrace trends, follow the market, the price at which you buy is not necessarily better the lower it is, but rather the more suitable it is. You won't gain an advantage just because the buying price is cheap, as declines do not indicate a bottom. Abandon junk coins; the trend is king.
3. In fact, in a speculative market, being adaptable is the most erroneous approach. Use your fixed trading system; in the face of changes, do not fear trying a thousand methods but rather fear using the same method a thousand times. Staying put is the best defense. Often, the times when you are most reluctant to let go are when you make the most mistakes. Reflect on this!
4. Patience is the foundation of making money. You may need to learn for a long time and be deceived countless times to understand the situation in the cryptocurrency market. It’s okay; cherish every experience of being deceived; these are lessons you need on your investment journey.
5. When the price of a coin enters a stable upward channel, each pullback is a temporary stop, presenting a good opportunity for us to get in. No coin will rise indefinitely; pullbacks are like compressed springs, preparing to jump higher.
6. Manually judged bottoms are generally not real bottoms, but rather halfway points. The real formation of a bottom can be seen through emotions and capital. So never blindly attempt to catch a falling knife; often 9 out of 10 will get trapped.
7. When holding positions in profit, close them when you reach your psychological price point; don't try to take it all. Also, pay attention to position and leverage control; learn to strictly control your position based on the leverage of the products you are trading combined with your own funds.
8. Utilize moving averages: Short-term operations typically refer to the five-day, ten-day, and twenty-day moving averages. When the five-day moving average crosses above the ten-day and twenty-day moving averages, and the ten-day moving average crosses above the twenty-day moving average, this is called a golden cross, which is a buying opportunity. Conversely, it is called a death cross, which is a selling opportunity.
9. If your mindset in trading cryptocurrencies is poor, even if you have millions, you can still end up with nothing. Trading is all about mindset; cryptocurrency trading is a psychological game, a contest of intelligence among millions of people, and a fierce psychological battle.
10. Lastly, of course, continue to learn investment knowledge about the cryptocurrency market, enrich yourself, and summarize daily. As the saying goes, practice is the sole criterion for testing truth. Only through extensive real trading can one truly consider themselves a beginner in cryptocurrency trading.
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