In the cryptocurrency world, whether you are a novice just starting out or a seasoned veteran, mastering some survival skills is crucial. Today, I will share a few key points.
Short-term trading is a common strategy in contract trading and is often the first choice for many newcomers to the crypto space. However, this approach carries extremely high risks, and profits largely depend on luck. The hard-earned money can be lost in an instant due to a mistake. Therefore, newcomers should not blindly follow the trend of short-term trading and must treat it with caution.
Learning to set stop-loss and take-profit levels is of utmost importance in contract trading. The cryptocurrency market is highly volatile, with prices changing rapidly. Setting stop-loss can help close positions in a timely manner when market trends are unfavorable, avoiding significant losses; while reasonable take-profit levels can lock in profits, preventing market reversals from leading to profit loss, effectively controlling profit targets.
Discipline in trading cannot be overlooked. In contract trading, emotions like greed and fear often influence our decisions, which is a primary factor leading to losses. Before entering a trade, be sure to set your stop-loss and take-profit levels, strictly adhere to your trading rhythm, and minimize emotional interference with decision-making. At the same time, create a clear trading plan for yourself, specifying the number of trades per day, and do not rush to recover losses by blindly increasing your position, as this often leads to deeper entrenchment in losses.
Analyzing market conditions is the foundation of trading. The cryptocurrency market can be divided into trending and ranging conditions. During weekends, ranging conditions are more common, making it unsuitable for long-term trades; if there are profits, they should be taken promptly. On the other hand, trending conditions typically occur during specific time periods, presenting good opportunities for profit, with buying on dips and selling on highs often resulting in higher returns.
Judging trends is a key step to success. Understanding the trend means you've won half the battle. We can assess market trends over time by observing daily and weekly candlestick charts. Blindly chasing prices up and down can ultimately lead to a total loss and an embarrassing exit.
The road in the crypto world is filled with challenges and opportunities. Mastering these survival skills can help you trade more calmly, reduce risks, and increase the likelihood of profits.
