I am someone who is determined to trade cryptocurrency for a lifetime! From losing heavily and going into debt when I first entered the market, to now becoming wealthy through trading, I have summarized 10 pieces of advice for trading cryptocurrency. If you want to make a remarkable comeback, please read carefully. I hope everyone can gain something from this.
1. A surge in price is a signal to exit, not to enter. Blindly chasing highs will only leave you hanging on a tree. If you don't want to be stuck for a year or more, it's best to understand clearly before getting in.
2. If one cryptocurrency accounts for more than 70% of your position, then if that cryptocurrency plummets or something unexpected happens, your position will suffer severely, making it difficult for you to recover.
3. Don't diversify your positions too much. Many fans come to me with dozens of cryptocurrencies in their portfolios. Not only can they not keep track of everything, but if half of the coins drop and half rise, it’s essentially futile.
4. When the certainty of spot trading is low, you must build your position in batches. This way, your cost price can remain at relatively low levels, and exiting should also be done in batches at relatively high points.
5. When trading contracts, you must operate with large funds and small positions. This minimizes risk while still allowing for relatively significant returns, and it has a larger margin for error.
6. Always set stop-loss and take-profit levels for contracts. Do not hold onto losing positions or go against the trend. The ideal win-loss ratio is 2:1 or 3:1; this way, even if you have ten trades with five wins and five losses, you are still in profit.
7. When trading contracts, learn to analyze technical indicators and news, and observe daily inflows and outflows of market funds, as well as the movements of large investors. Use this information to judge entry and exit points.
8. It’s best to wait for a trend to establish itself before getting in. With small funds, it's best to only trade intraday movements. No one can always catch the best opportunities, so just meet your psychological expectations.
9. In the cryptocurrency world, mindset is more important than technique. Don’t panic over minor fluctuations; a market that has both rises and falls is a healthy environment.
10. Avoid frequently changing positions or opening trades. One contract trade per day is enough. If the market doesn’t provide an opportunity, observe for two days and don’t force trades. If you’ve chosen quality potential cryptocurrencies, hold them firmly.
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