The crypto market is like life, it's a game of going from 0 to 10. Every trade and failure is an accumulation of experience. As the saying goes, 'You learn as long as you live.' Only by recognizing your shortcomings can you go further. I, Old Chen, am willing to share the detours and experiences I’ve gone through, hoping everyone can take fewer detours!
Still the same, these ten iron rules are shared below in text and images for everyone's convenience to collect and understand!
Iron Rule One:
A surge is a signal to exit, not a signal to enter. Blindly chasing highs will only leave you hanging in the trees. If you don't want to be stuck for a year and a half, it's best to understand clearly before getting involved.
Iron Rule Two
If one coin accounts for more than 70% of your position, then if that coin crashes or something unexpected happens, your position will suffer greatly, making it difficult for you to recover.
Iron Rule Three:
Don't spread your positions too thin. Many fans come to me with dozens of cryptocurrencies in their portfolio. If you can't keep track of so many coins and half are falling while the other half are rising, it's all for nothing.
Iron Rule Four:
When the certainty of spot trading is low, you must build your position in batches. This way, your cost basis can be at relatively low points, and exiting should also be done in batches to take profits at relatively high points.
Iron Rule Five
When trading contracts, make sure to operate with large funds but small positions. This minimizes risk while still allowing for relatively significant returns and greater tolerance for errors.
Iron Rule Six:
Always set stop-loss and take-profit levels for contracts. Don't go against the trend. A profit-loss ratio of 2/1 or 3/1 is best; this way, even with 10 trades, if you win 5 and lose 5, you are still in profit.
Iron Rule Seven
When trading contracts, learn to observe technical factors and news, and monitor daily market capital inflows and outflows, as well as the movements of whales. Combine technical analysis with news to determine entry and exit points.
