Some people fantasize about getting rich overnight in the cryptocurrency world by luck, but the reality is: this is not a place for luck; it is more like a wealth distribution game driven by mathematics and discipline. Those players who seem to experience sudden 'comebacks' all hide a set of calm and almost harsh trading logic behind them. The root cause of most people's losses is simple — replacing strategy with emotion, turning investment into gambling.
Position management: determines how long you can survive in the market.
Newbies often make the foolish move of going 'all in', always feeling that 'this time it’s safe'. But the cryptocurrency world specializes in punishing those who are overconfident; one wrong full-position trade can wipe you out in seconds. A true expert asks themselves before placing a trade: how much loss can I tolerate at most? If the answer is 'I can't afford to lose', then don’t enter the market at all.
Remember the iron rule: a single loss exceeding 5% of your principal means you are 'gambling with your account'. The market will not give you a break just because you are confident.
Stop-loss is not about admitting defeat; it is the bottom line for survival.
Many people get liquidated not because the market is too harsh, but because they never set a stop-loss. It’s like driving without a seatbelt; not having an accident is luck, but having one is fatal. If you lose 5%, exit decisively, and you can save your money to try again; if you wait until you’ve lost 50% to react, you are basically done for.
Don’t view stop-loss as weakness; it is the most basic respect for your own funds.
Risk-reward ratio: the key to whether you can make money.
Many people run when they make a profit and hold on when they lose, resulting in less and less money. But experts do exactly the opposite: they cut losses quickly when losing and let profits run when making money.
For example: a maximum loss of 5% on a single trade, but the target is to earn 20% or even more. This 'small loss, big gain' risk-reward model is the core of long-term profitability.
Don’t argue with the market; you are always wrong.
You may often wonder: 'Why does the price drop even though there is good news?' Don’t try to reason with the market; it will never debate with you. If you think the market is 'wrong', it’s actually your judgment of the situation that is skewed. Those who stubbornly hold on until the end end up as 'martyrs' on the candlestick chart.
Execution: the key difference between winners and losers.
No strategy is useful if it is not executed. If you want to survive in the cryptocurrency world and make money, remember these three things:
- Control your hands: do not go all in at every opportunity; control the risk of each trade.
- Stick to discipline: exit immediately when the stop-loss is hit; do not harbor any luck.
- Calculate clearly: only participate in trades with a reasonable risk-reward ratio.
If you can do these three points, you have already surpassed 90% of the players.
The cryptocurrency world is not a dream factory or a charity institution; it is an arena driven by rules, mathematics, and execution. Stop operating based on feelings; from today onwards, replace impulse with a system and use discipline to combat volatility — this is the hard truth of surviving in the cryptocurrency space.#新闻交易 #MichaelSaylor暗示增持BTC
