After 10 years of trading, starting from $100 as a beginner to building assets worth tens of millions, I've encountered more pitfalls than you can imagine!
In the beginning, I held a $100 contract, hoping to make a fortune overnight, but ended up blowing up my account dozens of times within a few days, losing everything until I became numb.
Later, I relied on accumulating spot assets, catching a wave of a bull market, and also suffered through a bear market. At my worst, I lost 3 million in a year and took two years to recover. Fortunately, I gritted my teeth and persevered, slowly figuring out the rules, which allowed me to gradually bring my account back.
Today, I won't talk empty words; I’ll write down my “Seven Iron Rules of Trading” that I’ve cultivated through experience. If you understand them, at least you can save on tuition fees!
Iron Rule One: If you don't understand the market, don't place random orders!
The most feared feeling is “it seems possible.” The market should either have support, a trend, and volume backing it, or don't act at all. Vague signals will ultimately lead to losses.
Iron Rule Two: Always keep an eye on key levels!
Resistance levels, support levels, and trend lines are the lifelines of the market. If it breaks a level, you have to follow; if it doesn't break the top, you should exit. The market moves along the key levels, don't turn a blind eye.
Iron Rule Three: Stop-loss = protecting your capital!
Not setting a stop-loss is the biggest cancer for retail traders. Once you enter the market, write down your loss point, and cut it off when it hits, no negotiation. Those who survive are the ones who understand stop-losses.
Iron Rule Four: Position control is the number one principle!
Don’t go all in with heavy positions; split your positions into three parts: small position for testing, large position for following, and remaining for supplementing. As long as you’re not fully invested, you won't die.
Iron Rule Five: Profits not taken = zero!
When prices rise, don’t fantasize about the ceiling. Gradual profit-taking is the real way to make money. I've seen too many people take back to the starting point despite having made dozens of times profit.
Iron Rule Six: The market is revealed, not guessed!
Don’t foolishly try to predict tops and bottoms; following the trend is the easiest way to trade. Going against the market will lead to losses nine out of ten times.
Iron Rule Seven: Mindset is the bottom line of your account!
Greed, fear, and luck can eat away all your profits. What you need to do is: dare to enter, dare to cut losses, and dare to take profits. Stability in emotions leads to stability in accounts.
These things may seem simple, but to truly achieve them, you need years of real money to grind through. If you can persist in doing half of them, you will already be ahead of the vast majority.
If you don't want to keep going in circles, then join me in strategizing, allowing you to emerge from the low point as soon as possible. The current market is a great opportunity for recovery and flipping your account.
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