In cryptocurrency trading, following the six golden rules below will help you achieve stable profits!
1. Strictly set stop-loss to preserve the life line of your capital
① Key points: A single loss must be controlled within 10% of your capital. Once the stop-loss line is touched, exit decisively. Stop-loss can be flexibly set according to your risk tolerance, ideally at 5%-10%.
② Key significance: Stop-loss is the last line of defense in risk control, preventing significant capital shrinkage due to a single mistake, allowing you to maintain capital for continuous operations in the market.
2. Avoid overtrading and reduce ineffective operations
① Key points: When the market direction is unclear, remain cautious, reduce trading frequency, and avoid frequent buying and selling. Also, control the amount of capital invested each time to prevent impulsive emotional decisions.
② Key significance: Overtrading not only significantly increases trading costs but also easily traps you in a vicious cycle of chasing prices, lowering the success rate of trades.
3. Lock in profits and do not let gains turn into losses
① Key points: After generating profits from a trade, promptly set a take-profit position, suggesting that the take-profit position should be set at least above the cost price to ensure profits are secured.
② Key significance: The market changes rapidly; timely locking in profits can effectively avoid giving back earnings due to market reversals, achieving steady growth of funds.
4. Follow the trend and do not go against it
① Key points: Abandon subjective assumptions, do not preset fixed buying and selling prices, closely monitor market trends, and operate according to the trend. If you have doubts about the market trend, exit decisively and observe.
② Key significance: Operating against the trend is like a mantis trying to stop a car; following the trend allows you to leverage market power and increase profit probability.
5. Choose quality markets to enhance trading efficiency
① Key points: Prioritize mainstream markets with good liquidity, large trading volume, and strong volatility, avoiding obscure trading pairs.
② Key significance: Active markets ensure that buy and sell orders are executed quickly, reducing slippage risk, while providing more trading opportunities and profit potential.
6. Strictly adhere to trading discipline and refuse arbitrary closing of positions
① Key points: Closing operations must follow pre-set take-profit and stop-loss rules, avoiding arbitrary actions due to emotional fluctuations or subjective judgments.
② Key significance: Trading discipline is the guarantee for the effective execution of trading strategies. Strict adherence to discipline allows trading strategies to achieve maximum effectiveness.
