Yesterday, a fan reached out to me saying: Recently, SOL $SOL has experienced an independent trend due to staking, along with some meme coins, which made him constantly think about monitoring the market the moment he opened a contract. He was opening the exchange whenever he had free time, unable to think about tea or food and unable to sleep at night.
I want to say that cryptocurrency does not have opening and closing times like stocks; it's 24/7. If you're dealing with BTC or ETH, that's fine.
Then I watched him place his order... I was utterly speechless and wanted to say a word to all retail investors.
In my view, the root cause of many people's losses is false effort, inefficiency, meaninglessness, and self-deception.
Many people seem to be seriously trading cryptocurrencies, more serious than anyone else, trading for 16 hours a day. Even professional traders are not as diligent as you. Like full-time traders. But they just refuse to calm down, study, or read a few books, spending each day in ineffective market monitoring.
To put it nicely, it's called monitoring the market; to put it bluntly, it's just staring at the candlestick chart in a daze, not knowing what you're watching. As long as you spend time staring, you've put in effort, but aside from convincing yourself, it's utterly meaningless.
Trading is very simple; all those candlestick charts + moving averages + MACD lines are useless.
There are just 4 truly useful points:
1. Invest money you can afford to lose.
2. Do things with a high probability of success.
3. Do things with a high risk-reward ratio.
4. If you're wrong, know to cut losses.
When placing an order, you need to enter positions reasonably based on your own holdings. You must not hold onto losing positions. Set stop losses properly; contracts are suitable for swing trading. If you make a profit, you should pull out first. Holding onto profits, no matter how much they accumulate, is just a number. With rises come falls; entering and exiting at suitable points is the way to profit in the long run. Remember, even in a good market, stop losses must not be reduced. Perhaps the stop loss will hurt, but at least there is still a chance. However, forced liquidation leaves no opportunities. There are no invincible generals in this world, and it's impossible to profit on every trade. Getting into the habit of using stop losses will help you go further.
If you are also a tech enthusiast feeling helpless and confused about trading, and want to learn more about the cryptocurrency space and get firsthand news, click on my profile and follow me to stop getting lost! @加密大师兄888 Understanding the market clearly gives you the confidence to operate. Steady gains are far more practical than dreaming of getting rich quickly.
