A complete trading process, recommended to bookmark.
To achieve stable profits in cryptocurrency trading, relying solely on luck is far from enough. What truly works is a clear and executable trading process consisting of four core elements:
First is market analysis. You can use any familiar technical methods to determine trends, such as support and resistance, moving averages, candlestick patterns, etc. The main goal is to confirm the timing for entering the market.
The second is position management. Trading is not as simple as just buying and selling; once you enter the market, you must consider various possibilities: What if you make a profit? Should you add to your position or take profits? What if you incur losses? Should you stop-loss or hold onto the position? Position management must take both risk and reward into account. Set a stop-loss level, for example, below the support line. If it breaks, gradually reduce your position and exit step by step.
The third is strict execution. No matter how perfect the plan is, it is meaningless if not executed. In trading, you cannot be swayed by emotions; when it’s time to take profits or cut losses, act on it. Discipline is your biggest protection umbrella.
The fourth is reviewing and summarizing. Each trade should be reviewed to summarize whether the operation met expectations and whether the plan was reasonable. It’s best to span multiple market conditions (upward, downward, sideways) to optimize your system.
The key to position management is operating around the cost line. The area near the cost line is your support line. When prices rise far from the cost line, you can gradually increase your position; when prices fall far from the cost line, you should gradually reduce your position. When profits expand, you should gradually move the stop-loss up to the support level or near the cost price to lock in profits. The starting point for each position increase or decrease is to control risk.
In summary: Cryptocurrency trading is not about guessing price movements, but about adjusting positions around the cost line. Increase positions on the way up and reduce positions on the way down. The essence of position management is to replace emotions with rules, making each trade more stable.
With favorable market conditions and attractive points, trust me, and I’ll give you the points to help you turn things around!
