Many people are curious why there are 10U War God and 100U War God. Brother Kun summarized the following seven laws.
Everyone can experience it personally; no matter how you find me, Brother Kun will take you up the ranks for free.
1. Position Management and Fund Allocation
Diversify Investments: Split your funds into multiple parts, investing only a portion at a time to avoid entering the market with all your capital. For example, if you have 30,000 yuan, you can divide it into three parts of 10,000 yuan each.
Fixed Position Size: Maintain a fixed amount for each trade, such as 10,000 yuan each time, to avoid significant losses due to market fluctuations.
Position Limitation: Limit investments in a single cryptocurrency to no more than 5% of total funds to prevent individual cryptocurrency volatility from affecting overall capital.
2. Profit Taking and Stop Loss
Set Profit Taking: Sell part or all of your position when your investment gains reach a certain percentage (e.g., 50%) to lock in profits.
Strict Stop Loss: Set a fixed stop loss point; if your investment loss reaches a certain percentage (e.g., 2%), close the position immediately to avoid greater losses.
Dynamic Adjustment: Adjust stop profit and stop loss points in a timely manner based on market conditions and risk preferences.
3. Emotional Control and Discipline Execution
Avoid FOMO: Don't blindly chase after rising prices out of fear of missing out, especially when market sentiment is high.
Emotional Management: Stay calm and don't make impulsive decisions due to short-term fluctuations; stick to your trading strategy.
Rule Execution: Establish trading rules and strictly follow them to avoid disrupting your established plan due to emotional fluctuations.
4. Choose the right cryptocurrency
Research and Understand: Only invest in cryptocurrencies you thoroughly understand to avoid blindly following trends.
Mainstream Cryptocurrencies: Prioritize considering mainstream cryptocurrencies like Bitcoin and Ethereum, which are relatively stable and have good community support.
Long-Term Holding: For cryptocurrencies you are optimistic about, consider holding them long-term, setting reasonable profit-taking points, and waiting for value growth.
5. Technical Analysis and Market Trends
Trend Following: Use technical indicators such as MACD and moving averages to determine market trends and trade accordingly.
Volume-Price Relationship: Pay attention to the relationship between trading volume and price; exit timely when high volume occurs at high prices, and watch for buying opportunities when volume breaks through at low prices.
Avoid Chasing Highs: Cryptocurrencies that surge in the short term may face correction risks, so be cautious about chasing highs.
6. Review and Learn
Daily Review: Check your positions, assess the effectiveness of your trading strategy, and make timely adjustments.
Learn and Adapt: The market is constantly changing; continue to learn new knowledge and skills to adapt to the market environment.
7. Psychological Development and Risk Management
Be Patient: Long-term investments in the cryptocurrency market require patience; do not expect to get rich overnight.
Risk Awareness: Always be aware of the risks of investing, avoid wishful thinking, and manage your funds properly.
Practical Case Studies
An investor might split 30,000 yuan into three parts of 10,000 yuan each. Each time a position is opened, use 10,000 yuan for trading with 10x leverage. If you lose 1,000 yuan, make up for it from other funds to ensure each position remains 10,000 yuan. When earning 1,000 yuan, withdraw 1,000 yuan while keeping the position unchanged. This can avoid total losses due to market fluctuations while maintaining capital accumulation during profitable periods.
Conclusion
Making consistent profits in the cryptocurrency market is not impossible, but it requires scientific fund management, strict trading discipline, reasonable emotional control, and in-depth market research. Remember, long-term stable profits are more reliable and sustainable than short-term windfall gains.
