Still losing money in contracts? These six tips will help you turn the tide!
In the cryptocurrency world, some people are making a fortune while others are losing everything. If you are currently in a losing state and want to turn losses into profits, then you should take a good look at the following six points and follow them to significantly increase your chances of making a profit!
1. Learn to take profits and cut losses
The market changes quickly, so you must learn to take profits and cut losses. Taking profits means controlling greed. Currencies won't always rise or fall; when the price is right, secure your gains. Don't always think about maximizing profits; money in the cryptocurrency world is limitless, but account funds can be completely lost. Cutting losses means abandoning sunk costs. Don't fantasize about holding on until the market reverses; if you're wrong, admit it. It may hurt to cut losses, but it can save your life.
2. Don't trade too frequently
Don't always think about making money on both sides; that's too difficult. Being able to profit from one side is already good enough. Moreover, trading frequently incurs significant fees; with high-leverage contracts, opening a position can cost you 1-2 points of profit, which might just go to the exchange.
3. Learn to stay out of the market
When you don't understand the market, don't blindly open positions. Some fear missing out, but which feels worse: missing out or losing money? Opening positions without understanding the market is no different from gambling. Trading relies on probability advantages; no one can accurately predict rises and falls; you can only judge the general trend.
4. Take it step by step
Don't think you can get rich overnight. The cryptocurrency world won't make you instantly wealthy. For example, if you use 100 as capital and leverage 10 times, holding a position of 1000, a 1-point rise earns you 10. Opening three to four trades a day with a win rate of 60-70% is better than working in a factory, right?
5. Never go all in
Never go all in; a single unexpected event can lead to total loss. The market can suddenly reverse due to major news, and if you haven't set stop-losses, you're done for. The cryptocurrency world is full of market movements and opportunities that will last for the next 10-20 years. Don't be misled by the current illusions; focus on light and steady trading.
6. Be sure to align knowledge and action
This is difficult; even I sometimes struggle with it. Human weaknesses are hard to overcome. I was once a novice, blindly opening positions. After being in the industry for a long time, I understand that the cryptocurrency world can change your destiny, but you must have extraordinary mindset, courage to act, decisiveness to cut losses, and the determination to let go.
Contract trading is full of challenges, but mastering these methods will help you navigate the cryptocurrency world with fewer detours and move towards profitability. Remember, persistence and discipline are the keys to success. Let's work hard together and become that 1% winner!
