Stop-loss depends on skill, profit depends on the market!
After eight years of ups and downs in the cryptocurrency world, I have witnessed many investors wandering in the same trap: being greedy when in profit, stubbornly holding on when in loss, hoping for a miracle, ultimately sliding from a profit of one hundred thousand to a loss of five hundred thousand in the abyss.
Today, I will tell you a harsh fact bluntly: stop-loss is the skill you can master; profit, on the other hand, depends more on the market trend.
The stop-loss line is not drawn randomly; it is the 'escape door' you set carefully before stepping into the market. For example, if you enter the market at a price of ETH 3560, you should preset 3530 as your stop-loss point. Once the price falls below this line, decisively accept the loss and exit, trading a small pain of 30 points for the safety of retreating entirely.
Some may ask: "What if it rebounds immediately after the stop-loss?" This is the unpredictability of the market and is not within your control. Just like forgetting an umbrella on a rainy day, running home to grab one is much better than getting drenched.
Profit depends on both trends and luck. Sometimes, despite your careful planning, a sudden adverse news could ruin everything. But stop-loss is the shield you can firmly hold: with a certain loss of 3%, you can guard against 80% of the risk of a sharp decline.
Remember! Surviving in the market for a long time is more important than one-time windfall profits. Setting strict stop-loss lines is to ensure that your funds can flow steadily. As for profit, leave it to the market's fluctuations and your calm judgment.
First learn to stop-loss, then talk about profit; this is an indispensable lesson on the road to investment.
This concludes today's topic. Next time, we will delve into how to accurately draw stop-loss points using candlestick charts.