Three liquidations left me bankrupt, but they also taught me the invincible rules of the cryptocurrency world. Since then, I have never lost a large amount of money. Now I summarize my experience into five major disciplines to help you survive in the cryptocurrency world for a long time.
1. Never resist the market:
If the stop-loss is set, cut losses when it drops below
Do not believe in 'waiting for a rebound', do not believe in 'just wait a little longer'
Protecting the principal is the only way to have a chance to recover
I have witnessed too many people come back from the brink of liquidation, only to die in the next waterfall
2. Never be fully invested:
Heavy positions are the source of losses
I always maintain a half-position rotation
Divide the money into three parts: offense, defense, and reserve
Having money on hand keeps the mind calm
3. Only invest in leaders:
In a bear market, focus only on the top five mainstream coins
In a bull market, keep an eye on coins with hundred-fold potential
Do not touch small coins, do not play with air coins
Even if mainstream coins incur losses, they are understandable
4. Manage capital curves:
Pause trading after two consecutive stop-losses
Withdraw profits if monthly returns exceed 50%
Maintain a steady upward trend in capital curves
Do not pursue windfall profits, only seek compound interest
5. Make a good trading plan:
Write three reasons before entering the market
Set entry points, stop-loss points, and take-profit points
Do not act unless conditions are met
Eliminate emotional trading
Remember: only those who can control losses can truly make big money!
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