How can one make money in the cryptocurrency market?
There is a very important principle in trading: do not make small profits, do not incur large losses.
In simple terms, it's very difficult to achieve, let me give you an example: you opened a position with 20,000, and as soon as you opened it, the price rose to 21,000. You were very happy, took your profit, and made 5%, feeling great. However, the market continued to rise to 25,000... you made 5% but missed out on 50%;
Then you tell yourself that you want to make big money, and this time you are determined not to take profits. The market then drops back to 20,000, and you opened another position, which again rose to 21,000. You remind yourself to learn from the last lesson and hold on for big profits, but the market drops back to 20,000 and even below it to 19,500, and you stop out.
It's so hard for me!
Many people spend their whole lives in this dilemma, constantly switching back and forth, never able to escape.
Is there a way to make money in both big and small markets?
No, it's a choice between two. I usually choose not to make small profits and patiently wait.
Trading is a long-term practice, whether you are a short-term or long-term trader. Making 200% in a big market, as long as you can keep most of the profits, when the next big opportunity comes, you can make another 200%, that's four times... as long as you can preserve profits, you can compound them. If you make 200% this time and then lose it back, what’s the use? In the trading market, there is no concept of missing out; there are only losses and gains.
Some people may feel they have found the right path and are on the verge of getting rich.
Finding the path only means that your probability of making money has increased.
In fact, this kind of trading method has high requirements for mindset, patience, and boldness.
1. Are you willing to patiently wait for a good entry point?
2. Can you boldly open positions without caring about your principal, even if you lose it all? The anxiety of missing out, the urgency of wanting to secure profits after making some, and the worry of losing after opening a position... all require a long time to cultivate. If you want to play, be cautious, but also try to seek profit.
Of course, finding the path is still much better than those who are playing blindly. Many people go through their lives without ever figuring out where the path is.
