Is this little fluctuation such a big deal? You probably haven't experienced Black Friday in the cryptocurrency world. For believers in Bitcoin, mid-March 2020 was one of the darkest periods where faith faced a breakdown. During the global capital market's significant turbulence, the myth of Bitcoin as a 'safe-haven asset' also collapsed, plummeting from nearly $8000 on March 12, 2020, to around $3800, then fluctuating between $5000 and $7000.
I have struggled in the cryptocurrency circle for a whole ten years, experiencing three bull-bear transitions. From an initial capital of 6000 yuan to now achieving financial freedom. Along the way, I have stepped into almost all the pitfalls, but it is these experiences that have helped me develop my own stable profit system.
If you want to achieve a win rate of over 90% in cryptocurrency trading, you must read this article! When you understand what a trend is, trading is no longer confusing. When you understand what is important and what is secondary, it means you know how to weigh pros and cons. Trading is a measure of human sentiment; when it falls, we want it to fall further, and when it rises, we want it to rise higher. Each failed case reflects human greed, while each successful case is a reward for rationality. In the face of trends, all contrarian operations will bury your capital. However, going with the trend can sometimes be timid. After a long decline, you should go long; after a long rise, you should go short. Many people trade with this mindset, not realizing that this thinking has no technical basis. I believe every investor thinks that having enough theoretical knowledge plus technical analysis will lead to smooth sailing, but they also overlook several less emphasized areas, leading to margin calls and being trapped! Today, I’ll remind everyone of a few easily overlooked techniques to help you improve your win rate!
1. Acknowledge mistakes, admit mistakes, correct mistakes
Traders often incur losses when entering trades. At this time, you must consider whether the losses are temporary or if the trend direction has changed. If it is the latter, you must acknowledge your mistake and cut your losses. When the market trend does not align with your thoughts, never assume that the market is wrong; the only one who is wrong can only be the investor themselves. The measures to take at this point are to think and correct your viewpoint rather than stubbornly sticking to your own opinion.
2.
Reverse Thinking
When you want to go long, look for reasons that are unfavorable for going long. Are there reasons to go short? At this point, do not look for reasons to go long. If none of the reasons support going short, then go long. This is a form of reverse thinking, a forced change of mindset that helps filter out unnecessary trades, making your trading more secure.
3. Don't fall in love with your trades
The purpose of trading is to make a profit. If the direction of the trade is inconsistent with your prediction, you can choose to exit the market rather than holding on stubbornly. Exit long positions when conditions change, and exit short positions when conditions change for shorts. Reject the mentality of taking chances and stop falling in love with your trades.
4. Good state
Before traders engage in trading, they should first adjust their state, including a clear mind and sufficient physical strength. If a trader's physical and mental state is poor on that day, it is best not to engage in trading. Generally, those who are busy should not trade, those who are in a bad mood should not trade, and those who are ill should not trade. Besides these three points, if you are sure that your thinking is clear today, you can start trading.
5. Confidence
When trading in the market, one must have enough confidence. Do not be discouraged after incurring trading losses; just follow the pre-planned strategy after a loss. After failing, you can choose to look for the next opportunity instead of dwelling on it. Trading in the market requires caution, but it does not require fear; it must be acknowledged that losses are inevitable. What needs to be considered in trading is how to improve the win rate and how to reduce losses.
6. Reject randomness
When traders are trading, they must reject random operations. Strictly executing a pre-established trading plan is the best way to combat psychological factors in trading. A complete trading plan includes entry points, profit-taking points, stop-loss points, averaging points, position usage, entry conditions, exit conditions, etc.
When trading is conducted according to plan, the randomness and chance of trading are minimized. In the investment market, every small detail is very important and cannot be ignored. Only by taking each small step can one make a big leap. For more knowledge on cryptocurrency investment, please follow Huige, and you can expand your reading in past articles in the column.
The two most important points in investing are: first, you must understand how to analyze market trends; second, you must know how to control risks. As an investor, you should have a good mindset and the correct investment concepts. Positive people see an opportunity in every difficulty, while negative people see some trouble in every opportunity. When facing the violently fluctuating market, we must seize every opportunity. Seizing opportunities is equivalent to seizing tomorrow! No more motivational talk; just understand it in your heart! The pain comes from pursuing the wrong things. It's more about your own lack of experience than the market making you suffer. Don't be discouraged; no one is forever unlucky. Don't be disheartened; no one sails smoothly all the time. Having experienced bull markets, felt the bear markets, endured crashes, and crossed over surges, nothing can make you stronger than this. When everyone no longer believes in you, I will firmly turn back for you.
