How to achieve stable profits in the cryptocurrency market?
Many people should have had the following experiences:
1. After making stable profits for a period, due to excitement, significant drawdowns occurred or repeated drawdowns happened.
2. Unable to find a method, constantly losing money while guessing in a win-lose game.
3. Paying too much attention to news, holding onto positions until the end, unwilling to take profits, ultimately losing the principal.
In fact, whether you are trading trends, swings, or short-term, the most important thing is to control yourself well.
Below are some experiences I have personally summarized, hoping to provide some help:
【1. Try to fix your position size when placing orders】
If your amount is relatively small and your position is unstable, then you will encounter situations where one trade makes 20🔪 and another loses 50🔪, which means that although the win rate is relatively high, you are still losing money.
【2. Always set a stop loss】
For short-term trading, there are many opportunities each day; if you incur a loss, you can wait for a different time to open a new position, but it is crucial not to hold positions indefinitely without a stop loss. I went from 20 to 2000, with three drawdowns along the way, all due to not setting a stop loss, and ultimately had to cut my losses, so setting a stop loss is necessary.
【3. How to set a stop loss?】
If you are trading short-term, then the take profit can be set at 40-60, and the stop loss at 20-30, which is a relatively ideal state. Market conditions vary, and so do take profit and stop loss levels, which need to be flexible and adaptable.
【4. You should have a 60% to 70% confidence level before placing an order】
You need to find a method that suits you and can continuously yield profits. Based on this foundational condition, optimize your strategy, and never blindly guess based on news.