Last month, an old fan shouted in the group that his account had returned to the pre-liberation level and was ready to exit completely. At that time, the market had just entered a period of fluctuation. I told him to hold off for now and wait for a signal. Three days later, the trend broke out with volume, and I guided him to test the waters with a small position and then increase his position. When we reached the target, he decisively took profits. In ten days, his account went from a loss to a profit.
I told him that this wasn't luck, but the result of method and discipline. After 12 years of trading cryptocurrencies, I've summarized 9 principles that can help me make stable profits. Many people face liquidation, not because of poor skills, but because they haven't mastered these fundamentals.
1. Don't rely on luck
You might make money in the short term with luck, but in the long term, it's all about skill. It's better to make small profits multiple times than to lose everything in one big bet. Cut losses when wrong, without dragging it out.
2. Maintain your own judgment
When the market is lively, news is everywhere, and it's easy to be influenced by others. You can listen, but the final decision must be yours.
3. Operate in the direction of the trend
It's easier to go long when the big trend is up, and the risk is lower when the trend is down. Making money against the trend is challenging and not suitable for most people.
4. Risk comes before profit
No matter how good the market is, always set a stop-loss position first. Test with a small position, and if the direction is right, then increase your position, locking in the risk within an acceptable range.
5. Be patient and wait for the right position
Don't chase after price increases, and don't blindly try to catch the bottom. Wait for the price to reach your planned range before acting. If you haven't reached it, stay in cash; you won't lose out on much.
6. Exit decisively
Close your position when profits reach the target; don't fantasize about prices always going up. Leave when losses hit your preset point; don't hold onto hope.
7. Keep your mindset steady
The market has ups and downs; emotions can easily lead to chaotic operations. Calm down and review your trades to perform better next time.
8. Combine news and technical analysis
Some market movements are caused by technical signals, while others are stimulated by news. Focusing on just one side may cause you to miss opportunities; combining both gives a more comprehensive view.
9. Only use spare money
Trading with borrowed money not only adds pressure but also makes you eager to recoup losses, leading to distorted operations. Trading with spare money stabilizes your mindset.
These 9 points may seem simple, but when you can truly implement them, that's when you start making money.
If you don't want to keep going in circles, then join me in laying out a strategy to help you come out of the trough as soon as possible. The current market is a great opportunity for recovery and doubling your investment.
