So many people who have lost money still stay in the crypto world to break even, but there is a cruel reality: most people are unlikely to break even or make money, especially those who think they can break even through contracts are simply deluding themselves. Those who make money through contracts are truly rare, few and far between. If you don't want to fantasize, why aren't you that person? To be honest, if you want to break even through contracts, you are really not cut out for it. It doesn't matter how much you lose; even if you go bankrupt, you cannot break even through contracts. Therefore, I advise those who wish to break even through contracts to quit contracts, in other words, quit gambling.
What should spot traders do if they lose money?
First, if the loss is not much and the principal is still relatively large, meaning the principal and loss are balanced, then breaking even is relatively simple and easy. In other words, if you need to multiply your investment by less than five times to break even, it is possible. But the most important point is the buying point.
And the selling point. If you are stuck at a high position, it becomes difficult. Most people can make money when the bull market starts or during the main rising wave of the bull market, but they lose money because they don't understand how to sell. After selling, during the main force's distribution phase, they repeatedly enter the market at a high position and get harvested. Thus, for retail investors, the selling position is very important, but selling is not the most important thing.
The most important thing is to be able to stay in cash after selling and wait, which most people cannot do. It should be that 95% of retail traders cannot do this, and that is the fundamental reason why most people lose money. If you can sell at a relatively high point, and after selling, you are not influenced by analysts in the market or by various good news at high positions, and you persist in staying in cash, that is genuinely securing your profits, and that is how you truly make money.
To summarize the people who lose money:
1. Break even within five times is good.
2. You need to know how to sell.
3. You need to know how to stay in cash.
Of course, this is the same for spot traders; less than 5% of retail investors make money because trading markets are a struggle against human nature: greed, fear, arrogance. Very few can overcome these.
So who are the ones that make money through trading?
Those who truly make money often only learn one trading strategy, can read the fundamentals, meaning when the market is at a bottom and consolidating, they buy in and can hold on. When it has risen to a reasonable point, they sell without paying too much attention to the news. For the coins they want to buy, they do not blindly buy, but when the bull market comes, any coin will rise.
In fact, especially many newcomers playing spot trading find it easier to make money.
Let's first talk about two simple ways to make money in the crypto world:
The first method:
Making money through trading is actually that simple; you only need these three steps! Master them, and you can easily multiply your account by 10 times!
Step one: Look at the trend first.
Step two: Then find the key points.
Step three: Look for entry signals.
Enter the market, profit, close the position, and leave.
Isn't it simple?
Let's go into more detail below.
Step one: Look at the trend first.
The state of the market.
There are only three outcomes in a major market: rising, consolidating, and falling.
What is a major market? Look at the charts of 4 hours or more.
For example, 4 hours, daily, weekly (my personal habit is to look at 4 hours).
When it rises, go long; when it falls, go short; do not trade during consolidation.
Step two: Find key points.
Whether the market is rising or falling, it will leap like a bouncing ball, jumping from level to level.
What we need to do is enter at the jump point and exit at the next drop point. How to find the precise steps becomes key.
This is what we call key points (main support and resistance levels).
(How to accurately find major support and resistance levels can be seen in my previous articles.)
Step three: Look for signals.
Generally, if you discover a trend in a larger timeframe, you should look for trading signals in a smaller timeframe to enter.
Everyone has different strengths in trading strategies; mastering one or two is sufficient.
More importantly, quickly formulate a trading strategy.
A complete trading strategy includes:
(1) Asset - What to trade;
(2) Position - How much to hold;
(3) Direction - Long or short;
(4) Entry point - At what price to trade;
(5) Stop loss - When to exit a losing trade;
(6) Take profit - When to exit a profitable trade;
(7) Countermeasures - How to deal with unexpected situations;
(8) Follow-up - Actions after the trade ends.
The famous TLS Technical Analysis Method: Trend + Key Points + Signals = Successful Trading.
Before every trade, follow the process to formulate a strategy; I believe you won't suffer too badly.
Forming good habits over time, you will discover your shortcomings during the trading process. Work hard to change them, and you will succeed!
Finally, let me say something heart-wrenching.
There are no guaranteed profit secrets in the crypto world, only probability games. The essence of the retracement confirmation rule is to use rules to counter human nature—remain calm when others are panicking, and restrain yourself when others are overly excited.
Strong recovery, asset doubling! Stay nostalgic, lay out in advance, and easily reap big gains.

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