In 2025, how do we 'survive' in the cryptocurrency market?
1️⃣ Precisely formulate a risk plan to firmly establish a financial safety line; planning is essential before trading:
1) Combine capital risk planning with overall capital and off-exchange income status to set reasonable single and overall risk tolerance ratios. Professional traders usually control the risk of each trade to within 2%, and when monthly losses do not exceed 10%, if the red line is crossed, decisively pause trading for a review.
2) The essence of risk planning in trading is psychological management, but emotions can often sway people. It is necessary to formulate a risk plan based on one's psychological endurance to ensure the trading plan aligns with actual psychological capacity.
2️⃣ Crack the essence of the profit-loss ratio to enhance the probability of trading returns; trading is not simply about market forecasting, but about precise control of the profit-loss ratio. Each trade's entry, exit, stop-loss, and take-profit should be based on a scientific plan. By reasonably setting stop-loss and take-profit levels, clarify potential losses and profit margins, and improve overall transaction rates with appropriate profit-loss ratios.
3️⃣ Follow the trend for reasonable take-profit to lock in profits for withdrawal.
1) Trend judgment and position market trends gradually develop strategies from smaller time frames. Traders should set different targets according to trading cycles; when a significant trend occurs in a smaller cycle, a phased position reduction strategy can be employed to allow profits to continue to grow.
2) Common surplus ratios can be set as reduction points for take-profit targets. If it is difficult to predict clear target points, position reduction can effectively reduce the risks of capital influx due to market volatility.
4️⃣ After achieving a certain profit in the trading market, promptly withdrawing part of the principal is a wise move. Market opportunities are endless; preserving the principal ensures there is capital for continued market participation, laying the foundation for achieving greater profit goals.
Remember, scientific trading risk management is always your confidence!