If you are in a losing position with your contract and you want to turn losses into profits, you need to read this article carefully. Follow the six points below to ensure 100% that you can achieve profitability.
1: Learn to take profits and cut losses. The market is ever-changing, and you must learn to take profits and cut losses. This is not as difficult as it sounds; taking profits controls your greed. A coin will not rise indefinitely, nor will it fall endlessly; there are cycles. Therefore, taking profits becomes particularly 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, but the money in your account can be lost completely. Cutting losses means giving up sunk costs, which is also difficult. Don't always think that if you hold on a bit longer, the market will reverse in the next second. Don’t think like that. If you're wrong, you're wrong; recognize it. Endure the pain of losses, as it can save your life.
2: Do not trade frequently. A big taboo: don’t always think about making money on both sides. Wake up; not many people can do that. If you can make money on one side, be satisfied. Another point is transaction fees; if you’re trading at low leverage, it’s fine, but high leverage can be painful. You lose 1-2 points of profit as soon as you open a position. You need to ensure that this trade can make money; otherwise, it’s meaningless, and all your earnings will go to transaction fees!
3: Learn to hold cash. When you can’t understand the market, don’t open positions blindly. You might say that missing out is uncomfortable. So I have to ask you: is missing out more uncomfortable or is losing money more uncomfortable? Not understanding the market and blindly opening positions is no different from gambling! Trading requires a probabilistic advantage; no one can accurately predict whether the market will rise or fall. The market changes too quickly; you can only say that it is highly likely to go up or down.
4: Progress step by step. Don’t always think that you can suddenly become rich; you can’t rush to eat hot tofu! The crypto world won’t make you rich overnight. For example, if you start with 100 and go long at 10x leverage, your position is 1000. If it rises by one point, you earn 10; if it rises by two points, you earn 20. That’s already a breakfast’s worth of money, right? Now, working in a factory earns 15 per hour. If you make three or four trades a day with a win rate of 60-70%, isn’t that better than working in a factory?
5: Never go all in. Absolutely do not go all in; if something unexpected happens, it could all be gone. For example, if the market is expected to rise but suddenly there’s a shocking piece of news that turns it around, and you haven’t set a stop-loss, then it's over! So don't rush; always trade with a light position, prioritize stability. The crypto world is not lacking in opportunities; they will always be there, at least for the next 10 to 20 years. So don’t be deceived by the illusions in front of you!
6: You must ensure that knowledge and action are unified. This point is indeed quite difficult; even I sometimes can't fully achieve it. Human weaknesses are hard to grasp! I was once a novice too, and I didn't understand these basic issues at first—blindly opening positions without a plan! After being in the industry for a long time, you'll realize that the crypto world can truly change your destiny! The premise is that you must have a mindset far superior to others, the courage to take risks, decisiveness to cut losses promptly, and the determination to survive despite hardship! Otherwise, you will never become part of that 1% destined for success.
