90% of retail investors losing money is the norm, simply because they don't understand position management!
In the cryptocurrency market, do you frequently trade but always end up losing? The key lies in not mastering position management. The core of making money in the cryptocurrency market isn’t relying on wild price swings, but rather surviving through volatility.
Many people enter the market with a full position, not understanding how to manage it. A single bearish candle can lead to a significant loss, or even wipe out their position entirely. So how should one manage their positions effectively?
Having a full position doesn’t mean you can seize a bull market. Wanting to get rich quickly with a full position often leads to more wrong moves than right ones. You should learn to diversify your positions, starting with 20%, keeping the remaining funds liquid to add positions when opportunities arise.
Being in cash is a powerful tool to prevent losses. When the market is unclear, staying in cash is the safest option. Don’t follow the crowd out of fear of missing out; being in cash at least preserves your capital. Money comes from the market, but without a calm mindset, you will only be eliminated.
You must avoid emotional trading. Thoughts like "If it drops a bit more, I’ll break even," "I’ll bet it will rise," or "If others are entering, I will too" can lead to impulsive losses. Stay calm and do not let emotions dictate your decisions; this is the key to long-term survival.
When making a profit, withdraw funds in a timely manner to lock in profits; don’t wait until the market reverses to regret it. Locking in profits allows you to better cope with future fluctuations.
I used to make the mistakes of going all in, over-leveraging, and chasing prices. I later realized that the hardest part of the cryptocurrency market is survival. Position management and mindset are the cornerstones of success.
Avoid emotional trading, lock in profits, and do not blindly average down on losses. Trading in the cryptocurrency market relies on strategy and execution; no matter how many opportunities there are, if you can't maintain your composure, you will waste them.
Trading cryptocurrencies is about repeatedly doing simple things. Persistently using one method over a long time can lead to mastery; trading cryptocurrencies can be like any other industry where practice makes perfect, allowing you to make decisions effortlessly.
This year marks my seventeenth year of trading cryptocurrencies. I entered with 10,000, and now I support my family through trading! I can say that I have tried 80% of the methods and techniques in the market. If you want to treat trading cryptocurrencies as a second career to support your family, sometimes listening and observing more can help you discover things outside your current understanding, potentially saving you five years of detours!
Follow me @加密大师兄888 to keep up with trends and grow rich together! Bulls and bears coexist.