1. Losses should not exceed 10%. Each time you enter the market, your loss should not exceed one-tenth of your capital. If you lose 10%, exit decisively, do not hesitate! A 10% loss indicates that this operation may be wrong; timely stop-loss can protect your principal.
2. Always set a stop-loss. The stop-loss does not have to be 10%, it can be set at 5% or other ratios based on the situation. The purpose of a stop-loss is to prevent losses from expanding; never think 'waiting a bit longer will help me break even.' The market won't wait for you!
3. Never overtrade. Trading at a moderate level is very important! When the direction is unclear, do not invest too much capital and avoid frequent operations. Frequent trading not only increases the chance of mistakes but also raises transaction fees, which is not worth it.
4. Never let profits turn into losses. After making a profit, set a take-profit level to ensure that profits do not shrink. The take-profit level should be higher than the cost price to ensure effective profits; don't be greedy!
5. If in doubt, exit. If you can't judge the market trend, then decisively exit and observe. Blindly holding positions will only increase risk; going with the trend is the way to go.
6. Only trade in active markets. Active markets have good liquidity, making it easier to execute trades. Choose assets with high trading volume and strong volatility, and avoid operating in obscure markets.
7. Do not set target prices. Don't think 'I'll buy when it drops to XX price' or 'I'll sell when it rises to XX price.' The market trend is what matters most. Go with the trend, don't go against the market!
8. Do not arbitrarily close positions; set take-profit to protect profits. Closing positions should have principles; do not operate based on feelings. Pre-set take-profit levels to protect profits and avoid random operations that lead to losses.
Summary: Trading cryptocurrencies is not gambling, but an investment behavior that requires strategy and discipline. Master these eight key techniques to say goodbye to 'feeling-based' investing and steadily earn profits!
