In the cryptocurrency world, we went from 90,000 to 1,000,000 in 5 years, repeatedly chewing on these five sayings.
These are my mentor's 8 years of practical experience in the cryptocurrency market, with every word a truth, and every segment hitting home.
First, keep your stop losses small and your profits large. All the traders who can make money are not the ones with the highest accuracy, but those who lose small and gain big. No one can accurately predict how long a trend will last.
Second, compared to so-called instant wealth, surviving is what matters most. The priority of trading is safety first, then profit. Second is execution ability. Third is stability and sustainability. Only then comes your damn sentiment. Remember this order; the probability of surviving is still quite high.
Third, a smart trader is not necessarily a good trader. If you think that after correctly judging a few trades, you are a chosen one, then the bigger pits are already prepared for you later.
Fourth, maintain the mindset of a retail investor, accept the fact that you are seen as meat by the main capital, and neither you nor I can control the market. So if the direction is wrong, fleeing in time is not shameful, and occasionally losing a few trades is also not embarrassing. If you incur losses, your mindset collapses, and you aggressively increase your positions, then going against the main capital and getting liquidated is what is truly shameful. You need to understand. Our advantage as retail investors is flexibility in capital, with the freedom to enter and exit, which is the only disadvantage of the main capital. Once you understand this, you will know how to fight this battle.
Fifth, you are here to trade, not to gamble, and certainly not to risk your life. No matter how good the market conditions are, do not throw caution to the wind. At least keep enough for your family's living expenses for a year. Putting all your wealth and life on the line is not bravery but recklessness. Investment involves risks; enter the market with caution.
