People often ask: 'Why does it drop when I buy, and soar when I sell?'
Ultimately, you may just lack a trading discipline that truly belongs to you.
Trading based solely on feeling and operating based on emotions is the root cause of losses for most people. Today, I share the 7 trading disciplines I've adhered to for many years, hoping you can read them carefully, which might help you avoid many pitfalls.
1. Asset allocation: diversify but also concentrate.
Don't go all in, but also don't spread your bets too thin.
Putting all your funds into one coin is extremely risky; buying a dozen coins with each being a 'small position' means you won't make money even if some go up.It's recommended to hold 3-5 promising coins, allocating positions reasonably to diversify risk without overly diluting returns.
2. Before buying, ask yourself: is this a short, medium, or long-term trade?
Before buying, make sure to think clearly:
What to do if it drops? Average down, cut losses, or hold?
When to sell after a rise? What is your target price?
Many people lose money because:
Feeling reluctant when it drops, always wanting to 'sell after breaking even', results in deeper losses.
If you can't hold on after a slight increase, you'll regret selling too early.
So:
If it's long-term, look at the value and growth space for the next 2-3 years, and don't easily exit due to short-term fluctuations.
If it's short-term, be sure to set stop-loss and take-profit points, strictly enforce them, and refuse emotional averaging down!
3. Stay away from contracts and cherish your account.
Leverage ≠ strength; money made by luck is often lost due to lack of skill.
Almost none of my friends who trade contracts have truly survived two years of a bull market.
Remember: making money from contracts is just a process; going to zero is the end.
4. Invest with spare money, never borrow.
The crypto world is high risk; you can only invest spare money—money that won’t affect your life if lost.
Avoid borrowing money or taking loans to trade crypto: borrowing not only carries interest pressures but can also lead to a collapsed mindset and distorted operations.
In the crypto world, bull markets are short, and bear markets are long; borrowers usually can't last until dawn.
5. Either don't buy, or buy enough.
Don't chase coins that are rising, as it will artificially raise your cost.
Buy in batches during declines and hold calmly during rises to avoid mistakes caused by greed.
6. Stick to value and long-termism.
If you really believe in a project:
Recognize their team, vision, and technology;
Believe in their track and growth space...
Then just be patient; there's no need to panic sell due to market fluctuations.
Time is often the best friend of value investment.
7. Keep your hands steady and your mind relaxed.
Many people know it's not a buying point, yet they still act impulsively, leading to repeated losses.
Refuse to blindly chase prices and resist FOMO emotions.
Spend the most time researching and the least time trading; don't blindly follow 'master recommendations' or join 'wealth password groups'.
You can't earn money beyond your knowledge; even if you make money by luck, it will soon be returned to the market.
Discipline is not a dogma, but a survival experience gained from countless lessons.
Some pitfalls must be experienced personally to be remembered, but if you're willing to absorb the experiences of others, you might avoid many detours and unnecessary losses.
In the crypto world, improving your knowledge is always the best investment. You can either spend money to buy others' experiences to avoid pitfalls, or you can lose money to learn lessons, sometimes at the cost of tens or even hundreds of times.
May you invest rationally, progress steadily, and ultimately navigate through bulls and bears, smiling in the end.
