The mindset that short-term trading can make big money is questionable; look at this.
Many people say trading is difficult and learning the technology is hard, and of course it is. However, trading and learning anything new is the same; it requires constant practice in the early stages.
If we compare trading to learning the piano, then for beginners, learning music involves understanding the basic knowledge of notes, while in trading, it involves learning the basic knowledge of market trading.
Because you have never been exposed to it, you need to practice continuously and repeat it often to have a chance at grasping it initially. Its monotony and the unsatisfactory results on the account can be frustrating, as you may move forward only to step back twice with each advance.
When we start trading cryptocurrencies, we often face losses. But why do we lose? Many people do not know.
Many new cryptocurrency traders often see discussions in the media about plummeting prices and waterfalls.
Influenced by this panic, many new cryptocurrency traders become nervous and may make wrong judgments at any moment.
This is why many people fail to make money during a rise and lose money during a sideways market.
Under the influence of a poor mindset, one not only fails to become an eagle in the market but instead becomes a worm in the market.
Can trading contracts and spot trading capture the rare trunk market that happens only once or twice a year? Can you earn 10x or 100x profits?
Shouldn't there be a big question mark here? With ambitions to earn ten or a hundred times in a year, yet living a hand-to-mouth existence.
There is a strange phenomenon in trading: low-frequency traders have a much deeper and more thorough understanding of market trends compared to high-frequency and ultra-short-term traders who labor every day. Wealthy thinking is not chaotic thinking; it is not day-trading thinking. Day trading high frequency and chasing trends like Jesse Livermore or Warren Buffett is not sustainable.
Everyone can take a look at Lin Guangmao's famous battle of going long on cotton, to see how those who made tenfold or hundredfold profits did it.
A single line on the daily K chart shows that in five minutes, there are ups and downs, but trying to capture the scarce profits in those five minutes often leads to missing out on the continuous doubling fluctuations of the daily line.
I have always looked down on those who engage in ultra-short-term trading and day trading, not out of discrimination, but because I don't believe that day trading can capture significant market movements.
One of the cores of profit is that you can let profits run.
And letting profits run means you need enough patience to hold positions and wait for market movements.
This phase is painful; the market will not rise straight up and is filled with various twists and turns.
Losses, profits, losses turning into profits, profits turning into losses—the entire uncertainty of the trend is enough to drive many people to despair!
Common issues in cryptocurrency trading: How can beginners become experts? Newbies need to pay attention to a lot of things, especially in the crypto space. Although profits can indeed be made, there are many traps, and many new traders unknowingly lose their funds.
1. First, enter the circle and avoid randomly buying second or third-tier altcoins. Allocate your funds with systematic investments, distributing them in phases to top coins like Bitcoin and Ethereum, while reserving about 30% for other coins in the top ten to save and invest regularly.
Buy on the dip and sell on the rise. This is something beginners need to be cautious about because there are too many altcoins in the crypto space; once you buy and incur losses, it can be significant. Therefore, only consider Bitcoin, Ethereum, and other high market cap, active coins.
2. With the help of quantitative spot trading tools, you can play manually, but don't stop quantifying. The benefit of doing this is that it allows for 24-hour automatic trading, utilizing funds and preventing them from lying idle. Let your money work for you 365 days a year and make a profit.
3. Do not touch contract leveraged futures if you do not understand contracts, as the risks are too high, and beginners without trading experience can easily fall into traps.
Understanding cryptocurrency trading is a process. It goes from losing seven times to breaking even twice and then making a profit once. It's all about staying focused and avoiding the temptation of various profit models; firmly commit to one trading system, and over time, it will become your ATM.
High mountains have their paths, and deep waters have their ferry operators.
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