Friends in the cryptocurrency world, today I want to share the trading experiences I have accumulated over seven years, through countless hours of watching the market, gaining and losing. These lessons have truly saved my trading career, and I hope to help you avoid some pitfalls.
In 2017, I dove headfirst into cryptocurrency trading, filled with dreams of quick wealth. Like most beginners, I entered the market blindly during a bull market, without any strategy. As a result, the market gave me a harsh slap, but that slap became my best teacher.
Here are the key experiences I have summarized:
First, you must have a plan before trading. This may sound boring, but it is the core of trading. Before each trade, I clearly write down my entry point, stop-loss point, and profit target—no exceptions. I used to trade casually, hoping for good luck, but that was not trading; it was gambling in disguise.
Second, only trade with money you can afford to lose sleep over. I have paid a painful price for this lesson. Never trade with rent, emergency funds, or living expenses. Pressure can distort your decision-making, leading you to make emotional choices that harm your account. Start with a small amount of money and gradually increase your position after achieving consistent profits.
Third, greed is the killer of profits. Those rising green candles can be too addictive. I have watched my profits vanish countless times just because of greed, failing to take profits when I should have. Therefore, set profit targets and stick to them; there will always be new opportunities in the market.
Fourth, find a trading style that suits you. Don't blindly imitate others. The strategies that work for others may not be suitable for you. Some excel at short-term trades, while others are better at medium to long-term swing trading. You need to find a trading method that matches your personality and time availability. I spent two years imitating a cryptocurrency blogger I liked, only to end up in a mess because our risk tolerance and time management were completely different.
Fifth, emotions are the enemy of trading. FOMO (fear of missing out) and panic selling have caused me to lose far more money than mistakes in technical analysis. The market will exploit your emotions. When you feel the urge to trade immediately because you think the price is about to 'soar', it's best to stay away from your computer.
Sixth, patience is more important than speed. All the excellent traders I know are quite 'boring'. They wait for the right opportunities, do not chase market rises, and are willing to miss opportunities that do not fit their strategy. I used to think that I had to trade every day, but now I understand that sometimes the best trade is not to trade at all.
Seventh, short-term trading should also have a long-term perspective. One loss does not mean you are a poor trader, and one profit does not mean you are a genius. Focus on sustained profits over months or even years, rather than short-term results over days or weeks. Keep a trading journal to record both effective and ineffective trades; every transaction is a learning opportunity.
I hope these experiences can help everyone, and on the path of trading in the cryptocurrency world, let there be fewer obstacles and more gains!
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