In cryptocurrency trading, do you win with position size or with price movement? What knowledge should beginners in cryptocurrency trading learn?

Successful investors can strictly limit losses in their trades and promptly cut off losing positions; conversely, they do their best to maximize gains on profitable positions. As a result, a few large profits in a year's profit and loss statement can offset many small losses, leading to a good overall profit level.

The randomness and subjectivity of short-term trends, along with psychological factors such as greed and fear among speculators, make it challenging for traders to find risk management strategies that suit their trading style. However, regardless of the trading method we choose—short-term or long-term, emotional trading or algorithmic trading—we must consistently ensure that no single trade results in significant losses; we should consistently adopt a testing and scaling trading strategy, quickly cutting losses when market trends and our judgments do not align, and gradually increasing positions to amplify profits when they do align.

Trading is a game of limiting losses; by protecting ourselves, we can effectively eliminate the enemy. I categorize the profit models in futures trading into two types:

Winning through position size (gambling type);

Winning through price movement (trend type).

While traders' styles may differ, the core of both types of trading is the same: maximizing profits and limiting losses.

The futures market is a place full of temptations, with what seems like countless opportunities every day. However, opportunities and traps are always twin brothers. Many people engage in long-term and short-term trading, bustling in and out of the market daily, inadvertently wanting to conquer everything and seize profits from all market fluctuations, but often end up chasing shadows, leaving with hope and returning with despair. Reducing trading frequency is a lesson that beginner cryptocurrency traders need to learn.