The essentials are here~ Three tips to help you avoid the liquidation trap!
Don't be brainwashed by the poison apple of 'getting rich with ten times leverage'! Compound investing is indeed a tool to amplify returns in the crypto world, but 99% of people lose money because they 'can't control their hands'! If you want to navigate this game on the edge, remember the three iron rules:
Choosing coins is like selecting stocks, stay away from garbage! Don’t blindly chase after short-term surges of meme coins! The assets that can roll over must meet three conditions:
Weekly trend upwards - daily fluctuations are noise; only a long-term upward trend has sustained premium potential;
Volume doubles - any rise without real money backing is just a scam;
Stay away from anonymous teams/no established projects - rolling over air coins? Be careful, the project team might run away while you're rolling.
Increasing positions is not gambling; be as precise as a sniper.
The initial position should never exceed 10% of your capital! Remember this golden formula:
Initial position 10% → Increase position after a 50% profit (total position ≤ 20%) → Increase a third time after another 50% profit (total position ≤ 30%)
Core logic: Use profits to seek greater profits, always keep the capital on a safety cushion. Those who go all in end up as names on the gravestones of contracts.
Be ruthless with stop losses, be greedy with take profits.
Set a hard stop loss at -10%, and exit unconditionally if touched! But more importantly, watch for exit signals:
Reduce position by 30% if it breaks the 5-day moving average
Liquidate if the volume falls below the previous high support level
If the project team suddenly announces 'major good news'? Run! (It's often a signal to sell)
Finally, a cold splash of water: rolling over is an anti-human game; those who can strictly enforce discipline are less than 1%. Don't fixate on the myth of turning 1000U into 100,000U; first, master the basics of preserving your capital - survive, and you will be qualified to wait for a bull market.
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