The mentality in the crypto world is very important, for example, how to timely cut losses and take profits, whether there are experienced traders sharing insights, or whether fellow traders want to discuss.
Let me share my insights first. When trading, you must set stop-loss orders. For example, if you short at 90 with a stop-loss at 92, but after reaching 92.5, it drops to 85, you must not have the mindset that if I hadn't set a stop-loss, this trade would have made money; this can easily lead to liquidation. If you can't endure the stop-loss, it's better to exit early; as long as the green mountains remain, you don't have to worry about firewood.
Now I have a question: I always think about waiting to earn a bit more on my floating profit trades before closing them, but often it doesn't turn out that lucky, and in the end, I can only break even or take a loss. This relates to human greed, which is hard to restrain. Is there any good method? We can discuss this. I have two thoughts: first, lower your expectations, but not too low. Consider a profit-taking range before opening a trade and strictly follow it; don't be upset about missing out on a little profit. Second, give yourself a mental suggestion that only when you close the position does the upper number become yours. Beginners can easily fall into the trap of holding on to floating losses; even if they don't get liquidated, when the market returns to their entry price, they will close immediately. This is the fear mentality at play. Therefore, it's crucial to have a good entry position when trading to avoid frequent trading. That's all I want to share for today.
