1. Investment does not rely on luck.
If your profitable trades outnumber your losing trades, and your account's total value is on the rise, it indicates that your investment strategy has become stable. However, if nine out of ten trades are profitable but one wipes out all gains, leading to a decrease in the total account value, then you need to reflect. Investment should not be taken lightly; if the direction is wrong, decisively stop-loss and replan the next steps.
2. Trust yourself and remain undisturbed.
Many times, our initial judgment may be correct, but after being influenced by others, we hastily change direction and end up missing out on gains. Investors must have firm beliefs; often, the truth lies in the hands of a few. Firm confidence is key to winning in the market.
3. Master trading skills.
The cryptocurrency market has its unique rules; following the trend is a basic principle, while going against the trend often comes at a high cost. Therefore, when trading, one should combine technical analysis with market trends and try to avoid going against the trend. Focus on learning technical analysis to improve one's sensitivity to the market.
4. Strengthen risk control. Cryptocurrency investment is high risk and high reward; every trade needs to have risk predictions. Enter with a light position and increase when the trend is favorable, avoiding blind heavy positions. Set stop-loss and take-profit for each trade to avoid greed or hesitation, which helps maintain flexibility in investment and control over risks.
5. Grasp the timing of entry. Many investors are easily attracted by market fluctuations and rush to enter. However, if the entry point is not suitable, it can easily lead to losses. It is more important to wait appropriately and choose the right opportunity to enter. Be patient and wait for favorable conditions; do not rush in due to momentary impatience.
6. Exit decisively to avoid hesitation. Hesitation when exiting can lead to significant losses for investors. When profits reach the expected target, exiting in a timely manner is more reasonable than blindly pursuing higher returns. Avoid turning profits into losses due to greed. At the same time, when facing losses, stop-loss promptly and abandon temporary lucky thinking to avoid exacerbating losses and leave more capital for subsequent operations.
7. Maintain a calm mindset and eliminate impatience. Investment is a long-term process, and fluctuations in gains and losses are normal phenomena. Regardless of current success or failure, maintaining a good mindset helps face future volatility better. The market is unpredictable, and no one can always maintain accurate judgments. In the face of failure, summarize lessons learned, adjust your state, and continuously optimize strategies to ultimately achieve stable profits.
8. Pay attention to news and combine it with technical analysis. News has an important impact on market trends; often a major piece of news can overturn existing technical patterns. Therefore, when making trades, it is necessary to combine news and technical analysis to make a more comprehensive judgment.
9. Maintain sufficient funds and use them wisely. If investment funds come from borrowing, the mindset may become impatient, and operations will be restricted. Cryptocurrency investment should be done with spare funds; this not only stabilizes the mindset but also allows for more flexible operations like increasing or locking positions.
