If you are in a losing position in a contract and want to turn your losses into profits, then you need to read this article carefully. Follow the six points below to ensure you can achieve profitability 100%.
One: Learn to Take Profits and Cut Losses The market changes rapidly, so you must learn to take profits and cut losses. This is not too difficult; taking profits controls your greed. A cryptocurrency won't rise indefinitely, nor will it fall endlessly; there are cycles. Therefore, taking profits becomes particularly important. Don’t always worry about closing your positions too early and missing out on later profits! You must remember that you can never exhaust the money in the cryptocurrency market, but you can lose all the money in your account. Cutting losses means abandoning sunk costs, which is also very difficult. Don’t always think that if you hold on a bit longer, the market will reverse the next second. Never think like that. If you're wrong, you're wrong; admit it. If you take a hit, stand tall. Losing an arm to survive might hurt, but it can truly save your life.
Two: Don't Trade Frequently A major taboo, don't always think about making profits from both long and short positions. Wake up, not many people can do that. Be content with making profits from one side. Another point is the transaction fees; it's okay with low leverage, but with high leverage, it's uncomfortable. You lose 1-2 points of profit as soon as you open a position. You need to ensure that this trade can make a profit; otherwise, it's meaningless to open that position. All your profits would just go towards transaction fees!
Three: Learn to Stay Out of the Market When you don't understand the market, don't blindly open positions. At this time, you may feel uncomfortable missing out on the market. So I want to ask you, is it more uncomfortable to miss out or to incur losses? Blindly opening positions without understanding the market and not being able to grasp the direction 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 there is a high probability it will rise or fall.
Four: Progress Gradually Don't always think you can become a big shot in one go; you can't eat hot tofu if you're too impatient! The cryptocurrency market won't make you rich overnight. For example, if you start with 100, go long with 10x leverage, your position will be 1000. If it rises by one point, you earn 10 bucks; if it rises by two points, you've got 20 bucks in your pocket. That’s like having money for breakfast. Right now, working in a factory earns about 15 bucks an hour. If you open three or four trades a day with a win rate of 60-70%, isn’t that more comfortable than working in a factory?
Five: Never Over-Leverage Absolutely do not over-leverage. If something unexpected happens, you could lose everything. For example, the market is rising as expected, and suddenly a major piece of news causes a sharp downturn, and you haven't set a stop-loss; then you're finished! So, don’t rush into things. Always trade lightly and prioritize stability. The cryptocurrency market is not lacking in opportunities; there will always be opportunities available, at least for the next 10-20 years. So don’t be fooled by the illusions in front of you!
Six: You Must Align Knowledge with Action This point is indeed quite difficult, including for myself; sometimes I can't fully achieve it. Human weaknesses are hard to grasp! I was once a novice too; I didn't understand these basic issues at first. I blindly opened positions without a plan! After being in the industry for a while, you'll realize that the cryptocurrency market can indeed change your fate! The prerequisite is that you must have a mindset that far exceeds others, the courage to take risks, the decisiveness to cut losses, and the determination to survive at all costs! Otherwise, you'll never become part of that 1% destined for success.
