In life, one must learn to cut losses, especially in the cryptocurrency space!!!

The Core Value of Cutting Losses

Control Losses: Timely cutting losses avoids significant shrinkage of funds and locks in risks.

Strengthen Discipline: Cultivate execution ability and reduce emotional trading.

Four Major Loss-Cutting Strategies

Fixed Stop-Loss: Set a fixed percentage (e.g., 3%-5%), simple and easy to use, suitable for beginners.

Trailing Stop-Loss: Move the stop-loss position up with profits to protect gains, suitable for trending markets.

Follow-Up Stop-Loss: Combine technical indicators (e.g., moving averages, ATR) to dynamically adjust stop-loss positions.

Conditional Stop-Loss: Integrate technical signals (e.g., support levels + MACD) to improve accuracy.

Five Major Rules for Cutting Losses

Avoid High-Frequency Stop-Losses: Set a reasonable range based on volatility to reduce ineffective stop-losses.

Beware of Wide Stop-Losses: An excessively large stop-loss could lead to huge losses.

Avoid Tight Stop-Losses: Stop-losses that are too narrow can easily get shaken out by fluctuations.

Strict Execution: Avoid holding onto losing positions and strictly adhere to discipline.

Dynamic Optimization: Adjust strategies based on market changes to maintain flexibility.

Summary: Cutting losses is a core trading skill; when used properly, it can protect funds and improve win rates. #现货与合约策略 #大而美法案 #比特币巨鲸动向 #BTC #ETH

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