If you are in a losing position with futures, and you want to turn losses into profits, then you need to carefully read this article. Follow these 6 self-discipline rules to ensure you can achieve stable profits (suggestion: like + save) to avoid not finding it later.
Learn to take profits and cut losses
The market is changing rapidly; you must learn to take profits and cut losses. This is not difficult to say; taking profits controls your greed. A cryptocurrency will not rise endlessly, nor will it always fall; there are cycles. Therefore, taking profits becomes particularly important. Don’t always worry about closing positions too early and missing out on future profits! You need to remember that the money you can earn in the crypto world is never-ending, but the money in your account can be lost completely. Cutting losses means abandoning sunk costs, which is also difficult. Don’t always think that holding on to a position will make the market turn around in the next second; never think like that. Cutting off a limb to survive is painful, but it can truly save your life.
Do not trade too frequently
A major taboo in the crypto world, don’t always think about making profits on both sides? Wake up, not many can do that. Be content with profit from one side. Another point is transaction fees; it’s fine with low leverage, but it’s painful with high leverage. You lose 1~2 percentage points of profit as soon as you open a position. You must ensure that this position can make money; otherwise, it’s pointless, as all your earnings would just go to the brokerage as fees!
Learn to stay out of the market
When you don’t understand the market~ trends, don’t blindly open positions. At this moment, you might say, missing out on a trend is uncomfortable. So I have to ask you, is it more uncomfortable to miss out or to incur losses? Not understanding the market and not accurately grasping the direction is like blindly opening a position and opening a blind~ box! Trading relies on probability advantage; no one can accurately predict whether it will rise or fall, (of course, you can use hedging to reduce directional errors). The market changes too quickly; it can only be said that it is highly likely to rise or fall.
Progress step by step
Don’t always think about getting rich overnight; you can’t eat hot tofu if you’re impatient! The crypto world won’t make you rich overnight. For example, if you start with 100 and trade with 10 times leverage, your position is 1000. If it rises by one point, you make 10, if it rises by two points, you get 20 in hand. That’s a breakfast, right? Now, if you work in a factory, you earn 15 per hour. If you open three or four trades a day and have a win rate of 60~70%, isn’t that more comfortable than working in a factory?
Do not go all in on futures trading~ Ha
Never, ever go all in on futures trading~ Ha, if something unexpected happens, it’s all gone. For example, if the market is expected to rise but suddenly there’s a heavy news announcement and it plummets, and you just happened not to set a stop-loss, then it’s over! So don’t be in a rush, definitely trade with a light position, prioritize stability. The crypto world is not short of trends~ opportunities will always be there, at least for the next 10 to 20 years~ So don’t be fooled by the illusions in front of you!
Know that actions and thoughts must be unified
This point is indeed quite difficult; even I sometimes can’t fully achieve this. It’s hard to grasp human weaknesses! I used to be a rookie too, and many basic issues I didn’t understand back then. Blindly opening positions without a plan! After being in the industry for a long time, you will know that the crypto world can really change your fate! The premise is that you need to have a mindset that surpasses others, the courage to stand out, the decisiveness to cut losses in time, and the determination to survive by cutting off a limb! Otherwise, you will never become that one percent of the chosen ones!
