In the cryptocurrency world, opportunities to make money are everywhere, but the risks are equally massive. Today, I will share some practical trading strategies to help you survive steadily in the cryptocurrency world and even achieve a leap in wealth.
1. Take risks in batches, give yourself three chances
In the cryptocurrency world, the most risky methods should also be done in three stages. The purpose of this is to leave yourself enough opportunities and avoid losing everything from a single mistake.
Assuming your total account funds are 200,000, you can tolerate a maximum loss of 20%, which is 40,000. Therefore, you can allocate your loss plan like this:
First time: 10,000
Second time: 10,000
Third time: 20,000
This loss plan is both reasonable and safe. As long as you make one correct decision out of three, you can profit and even continue to survive in the market. Remember, not being eliminated by the market itself is a form of success, and success means you still have a chance to win.
2. Grasp market trends and patiently wait for opportunities
Trend trading is more challenging than range trading because trend trading requires chasing highs and cutting losses, as well as maintaining composure in positions. While buying low and selling high aligns with human nature, it is often difficult to make money. Precisely because trend trading is difficult, it presents greater opportunities to profit.
In an upward trend, any violent pullback is an opportunity to go long. If you miss the opportunity to get on board or have already exited, patiently wait for the market to drop 10% to 20%, and then buy boldly. Remember, the trend is your friend; patiently wait for opportunities and seize them boldly.
3. Set take-profit and stop-loss targets
Setting take-profit and stop-loss is key to determining whether you can make a profit. In multiple trades, we must ensure that total profits exceed total losses. Achieving this is not difficult:
Each stop-loss ≤ 5% of total capital
Each profit > 5% of total capital
Total trading win rate > 50%
As long as the above requirements are met (profit-loss ratio greater than 1 and win rate greater than 50%), you can achieve profitability. Total profit can be calculated using the following formula: Total Profit = Initial Capital × (Average Profit × Win Rate - Average Loss × Loss Rate).
4. Avoid over-trading
BTC perpetual contracts are traded 24/7, and many beginners operate daily, trading almost every day in a month with 22 trading days. But remember: if you walk by the river often, how can you avoid getting your shoes wet? The more you operate, the more likely you are to make mistakes. Once you make a mistake, your mentality may deteriorate, leading to 'revenge' trading, such as trading against the trend or over-leveraging. This can lead to one mistake after another, easily causing significant losses that may take years to recover.
5. Key points of rolling positions
The profits from rolling positions are enormous; as long as you can succeed a few times, you can earn returns in the millions. However, rolling positions require sufficient patience and skills:
Sufficient patience: The profits from rolling positions are huge, but opportunities are rare. Do not act lightly; look for high-certainty opportunities.
High-certainty opportunities: After a sharp decline, if there is a sideways consolidation followed by an upward breakout, the probability of following the trend is high. Identify the point of trend reversal and get on board at the start.
Only roll long, do not short: When the trend is unclear, do not easily short. There are more opportunities to go long, and the risks are relatively smaller.
Summary: The wisdom of survival in the cryptocurrency world
The cryptocurrency world is a place filled with opportunities and risks. To survive and develop here, you need to learn to take risks in batches, grasp market trends, set reasonable take-profit and stop-loss targets, avoid over-trading, and master the skills of rolling positions. These strategies can help you reduce losses and find opportunities that belong to you in the market.
I hope these experiences will be helpful to you. If you find them useful, don't forget to follow me; I will continue to share more practical cryptocurrency experiences and money-making strategies!
