How to Avoid Losing Money in the Crypto Space
Retail investors have a common problem: they hold on when they are losing and rush to sell when they have just made a small profit, without looking at trends or trading volume, only focusing on the profit and loss ratio in their accounts.
And the result? They lose heavily when they are down and make very little when they are up. It should be the opposite: hold on when you are in profit, and cut losses quickly when you are losing.
My principle for taking profits and cutting losses is very simple: take profit at 15%, and if it retraces to 10%, take profit; if it continues to rise, hold on and let the profits run. Conversely, if it drops after buying and the loss exceeds 5%, decisively cut losses.
As long as you can take profits at 10% and control losses at 5% each time, even if you operate 100 times with only a 50% win rate, your returns can reach 300%.
Is it difficult?
The difficulty lies not in the method, but in whether you can overcome your own greed and fear.
