If you are in a losing position with your contract and want to turn losses into profits, you need to read this article carefully. Following these points can help you make a profit #CryptoCommunication
1: Learn to take profits and cut losses
The market changes in an instant, so you must learn to take profits and cut losses. This isn't too difficult; taking profits controls your greed. A cryptocurrency won't rise endlessly, nor will it fall continuously; there are cycles. Therefore, taking profits becomes especially important. Don't always worry about closing positions too early and missing out on later profits! You must remember that the money in the crypto world is endless for you, but the money in your account can be lost completely.
Cutting losses means abandoning sunk costs, which can be difficult. Don’t always think that if you hold on a bit longer, the market will reverse the next second. Don’t think like that. If you're wrong, you’re wrong; acknowledge it. Standing firm when taking hits may hurt, but it can truly save your life.
2: Do not trade frequently
It's a big taboo to always think about making both long and short trades. Wake up; not many people can achieve that. Be content with making profits on one side. Another point is the transaction fees. With lower leverage it’s okay, but with high leverage, it can be painful. You lose 1-2 points in profit as soon as you open a position. You need to ensure that this trade can make money; otherwise, opening it is meaningless, as your profits go to the brokers as transaction fees!
3: Learn to stay in cash
When you don’t understand the market, don’t blindly open trades. At this point, you might say that missing out on a market move is frustrating. So I ask you, is it more frustrating to miss out or to incur losses? Not understanding the market and blindly opening trades is no different from gambling!
Trading relies on a probabilistic advantage; no one can accurately predict whether the market will go up or down. The market changes too quickly; you can only say that there is a high probability it will go up or down.
4: Progress gradually
Don’t always think you can become wealthy in one go; you can't rush to eat hot tofu!
The crypto world won't make you rich overnight. For example, if you have a capital of 100 and leverage it 10 times, your position is 1000. If it rises by one point, you make 10 yuan; if it rises by two points, you make 20 yuan, which is enough for a breakfast. Now, working in a factory pays 15 yuan an hour. If you make three to four trades a day and hit a win rate of 60-70%, it’s more comfortable than working in a factory.
5: Never go all-in with heavy positions
Absolutely do not go all-in with heavy positions; an unexpected event can wipe you out. For example, if the market rises as expected but suddenly receives heavy news that causes a sharp downturn, and you haven't set a stop-loss, you're done for! So don’t rush; always take light positions and prioritize stability. The crypto world is not lacking in markets or opportunities; they will always exist, at least for the next 10 to 20 years. So don’t be deceived by the illusions in front of you!
6: Be sure to align knowledge with action
This point is indeed quite difficult; even I sometimes can’t fully achieve it. Human weaknesses are hard to grasp!
These most basic issues were things I didn't understand at first. I opened trades blindly and without a plan! After being in the industry for a while, you'll realize that the crypto world can truly change your fate! The premise is that you must have a mindset that far exceeds others, the courage to fight, the decisiveness to cut losses in time, and the ruthlessness to survive against all odds! Otherwise, you will never become that 1% destined person.
