1. Each trade should not lose more than 2%-5% of total funds. Capital is limited, but market opportunities are unlimited; mindset should not be affected.
2. Always set stop-loss levels. The purpose of a stop-loss: to continue trading without exiting; to minimize psychological impact; to have a correct mindset.
3. Never overtrade. Exceeding the usual number of trades. Poor self-control - gambling; no time to view the market from a macro perspective; high costs; easily lose direction; brushing orders is acceptable, like in futures markets, but not suitable for digital currency; 80% waiting, 20% working. A bull market can oscillate for several months, ending in one day; if you can't even wait for an hour now, that’s an unhealthy mindset.
4. Never let your held positions turn from profit to loss. This has a particularly big psychological impact; you can refer to (trading psychology); for example, when buying a lottery ticket, after many times of not winning, winning a grand prize of 1 million finally allows you to realize your dreams, but if the lottery is lost, the psychological gap of gaining and losing is immense and extremely uncomfortable; revenge psychology, subsequent trades will always be losing money. Do not fixate on the account, and set reasonable profit-taking points.
5. Never go against the trend; if the trend is not clear, it is better to watch from the sidelines. Achieve 100% of not going against the trend; for example, during a rise, wanting to catch every pullback, but end up catching nothing. Those who truly lose money in the market are the ones who go against the trend; greedy people will never make money.
6. Entering a coin must be decisive; do not enter when hesitant. If you have doubts, you will close positions to stop losses; it must be 100%; there is no high probability; it must be inevitable, not accidental; even if I miss 3000 points, but based on my understanding, I grasped 500 points, then I am very satisfied; you're earning the money of those who enter the market later.
7. Only trade in active markets; do not operate in thin trading. Purpose: to maximize trading profits; when long-short forces are balanced and there is no directional bias, do not trade; seek opportunities to catch major trends.
8. Holding positions principle: Never set a target price for entering or exiting the market. We must set traps waiting for the price to enter, but we cannot be rigid; if it is close but doesn’t fall into the trap, we should actively reach out to find it, and apply learning flexibly.
9. Do not close positions without proper reasons; you can secure profits at your profit-taking point. There must be a reason to enter the market, 100%, trading is not gambling.
10. After continuous profits, you can withdraw part of the profits for emergencies. Protecting the principal is an unchanging ace; especially after continuous profits, it's easy to become inflated. Establishing a good capital curve is important; not withdrawing is just a number, which can return to zero at any time; securing profits; avoid arrogance and impatience, learn to harvest; every time you earn 100,000, you must take out a portion to prepare to return to the market.
11. When buying and selling incurs losses, avoid gambler-style increasing positions to lower costs. Newbies often like this method to break even, but it is not advisable.
12. Do not enter the market out of impatience, and do not close positions out of impatience. In a volatile market, ineffective trades, long-short balance, disorder, and lack of rules.
13. Avoid being willing to lose but unwilling to win; do not engage in trades that lose more and earn less. It is often acceptable to take a stop loss, but not a profit; those who buy are students, while those who sell are teachers. As long as you are not greedy, making money is very simple. The greatest disadvantage of greed is that it can easily ruin your mindset.
14. The stop-loss level set when entering the market should not be carelessly canceled. Seeking stability is more important than seeking profit.
15. The more you do, the more mistakes you make; wait for opportunities to enter the market. Do not trade too frequently; avoid excessive buying and selling.
16. Do not buy simply because the price is too low, and do not sell just because the price is too high. There is no lowest, only lower; no highest, only higher!
17. For each trading plan, give yourself only one opportunity to enter the market. If the trend judgment is correct and the risk-reward ratio is also fine, but the entry point is poor or position management is not good, resulting in repeated stop losses, it leads to emotional trading, easily working against the market, and possibly losing all your chips, or becoming timid and not daring to enter the market again, resulting in missing out on significant trends.
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