Master low-cost chips, invest steadily, and do not be swayed by market noise. When investing in cryptocurrencies, one must first recognize that low-cost chips are hard to come by and should never be easily lost to market fluctuations. Stay firm in your beliefs, remain calm, and prevent yourself from being disrupted by tactics like wash trading or market manipulation. Chasing prices and going all-in are often major investment taboos. If the market trend is positive, gradually building positions during downturns can effectively control risks better than chasing after high prices, with lower costs and greater profit potential. The key is to distribute profits reasonably, maximizing the vitality of your funds without blindly increasing your positions.
When the market rises rapidly, first lock in some profits in a timely manner and seek stability; when the market falls sharply, do not hastily withdraw funds, keep the main position, and stabilize your mindset. Avoid speculative shortcuts, do not seek too much too fast, do not fear market fluctuations, and always maintain a steady mindset to avoid operational errors. Early low-price layout or private placement of low-price coins stems from market experience and future potential estimates, while trading in the secondary market relies more on technical and information analysis. Reasonably distinguish between the front and back stages, ensuring that each step has clear logic and direction.
Building positions and unloading:
Building positions and unloading: layer by layer, controlling risks and profits.
Investing in cryptocurrencies is a complete process from building positions to selling. Layered and segmented operations are particularly key. Gradually widening price ranges helps effectively control risk and profit ratios, creating a more flexible operating space. Investors also need to be familiar with the correlation effects and observe the movements of multiple cryptocurrencies. Each cryptocurrency's performance in the market is interrelated; they may appear independent on the surface, but they actually influence each other. Properly allocate positions between hot coins and value coins to balance investment risk and profit return; being too conservative may lead to missed opportunities, while being too aggressive may face high risks. Value coins are generally more stable, while hot coins fluctuate wildly with significant ups and downs. Proper allocation is crucial.
Balance your mindset: capital management and risk prevention: balance your mindset.
In cryptocurrency investing, maintaining account liquidity, that is, having 'coins on the market, money in the account, and cash in your pocket,' is an important guarantee against market uncertainty. Never go all-in; allocate funds reasonably and master risk control principles. This not only stabilizes your investment mindset but also effectively controls risks. Invest with idle funds rather than borrowed capital; this is the foundation of investment. Master basic operational techniques and strategies, develop a habit of recording and summarizing, and treat the data of each operation's highs and lows as valuable experience. Gradually cultivate the ability to filter information and make decisions.
Grasp the elements of successful investing:
1. Investment does not rely on luck.
If your profitable trades exceed your losing trades, and your account value is growing, it indicates that your investment strategy is becoming stable. However, if nine out of ten trades are profitable, but one trade wipes out all your profits, resulting in negative account growth, then you need to reflect. Investment should not easily involve heavy positions; if the direction is wrong, decisively cut losses and replan your next step.
2. Trust yourself and not be influenced.
Often, our initial judgments may be correct, but after being influenced by others, we hastily change direction, resulting in missed profits. Investors must have firm beliefs; often, the truth lies with a few. Firm self-confidence is key to winning in the market.
3. Master trading skills.
The cryptocurrency market has its unique rules; following the trend is the basic principle, while operating against the trend often comes with a huge cost. Therefore, when trading, one should combine technical analysis with market trends and try to avoid counter-trend operations. Focus on learning technical analysis to improve your sensitivity to the market.
4. Strengthen risk control. Investing in cryptocurrencies is high-risk and high-reward; every order requires risk assessment. Enter with small positions, add positions in line with the trend, and avoid blind heavy positions. Set stop-loss and take-profit levels for each trade to avoid greed or hesitation, maintaining investment flexibility and risk control.
5. Grasp the timing of entry. Many investors are easily attracted by market fluctuations and rush to enter, but if the entry point is inappropriate, it can lead to losses. It is more important to wait appropriately for suitable opportunities to enter. Patience in waiting for favorable market conditions is essential; do not rush in due to impatience.
6. Exit decisively and avoid hesitation. Hesitation when exiting can cause substantial losses. When profits meet expected targets, exiting promptly is more reasonable than blindly pursuing higher returns. Avoid turning profits into losses due to greed. At the same time, cut losses promptly when losing, abandoning momentary luck to prevent exacerbating losses and leaving yourself with more capital for subsequent operations.
7. Maintain a stable mindset and eliminate impatience. Investing is a long-term process; fluctuations in gains and losses are normal. Regardless of current success or failure, maintaining a good mindset helps to better face future fluctuations. The market is unpredictable, and no one can maintain accurate judgments all the time. In the face of failure, summarize lessons, adjust your state, and continuously optimize your strategy to ultimately achieve stable profits.
8. Pay attention to news and combine it with technical analysis. News has a significant impact on market trends; often, a major news event can overturn existing technical patterns. Therefore, when making trades, it is essential to consider both news and technical analysis for a more comprehensive judgment.
9. Maintain sufficient funds and use them wisely. If investment funds come from borrowing, the mindset will become anxious, and operations will be restricted. Cryptocurrency investments should use spare funds, which not only stabilizes the mindset but also allows for more flexible position increases and locking.
The core elements of successful investment: steady operations and team support.
For investors who cannot filter quality cryptocurrencies, it is advisable to pay attention to professionals with mature strategies and solid experiences, whether in spot trading or futures contracts, and to intervene appropriately at the right time. Opportunities are fleeting, so grasping the rhythm is more important. Cryptocurrency investment requires an awareness of the timing and choosing the right entry and exit points. Successful investing relies not only on luck, but also on choice being greater than effort; the circle determines fate. Focusing on capable teams and following experienced leaders can undoubtedly help you navigate the cryptocurrency space with fewer detours and seize greater opportunities.
Investing in cryptocurrencies is filled with opportunities and challenges, with the potential for stable profits but also significant risks. Therefore, staying calm, mastering the rules, and learning analytical tools are essential paths to success.
Trading insights:
1. A market crash is a test for the quality of a coin.
2. Listen less to hearsay, as opinions can be neither right nor wrong.
3. Trading cryptocurrencies is actually trading oneself.
4. Trading cryptocurrencies is a process of cultivating the heart, self-discipline, and nurturing oneself.
5. The challenge in trading lies in execution; consistently apply one method.
6. Intervene decisively when a primary upward trend forms without significant volume increase.
7. When the coin's trend is upward, there is no need to look at other indicators besides trading volume.
8. If there is no volatility three days after a short-term buy, consider selling.
9. If a coin drops 50% from its high and continues to fall for 8 days, it has entered an oversold channel and can be followed for a rebound.
10. When trading cryptocurrencies, focus on leading coins, as they rise sharply and resist declines the most.
11. Embrace trends and act in accordance with them.
12. Do not let profits cloud your judgment.
13. Do not trade just for the sake of trading.
In the cryptocurrency market, being reactive is the worst approach.
Apply a fixed trading system to respond to changes. Sticking to one method is more effective than frequently changing methods.
Sharing some insights from speculative trading.
At different stages of life, our experiences and insights can greatly change our thoughts.
It is the same in the speculative market. From the initial entry into this market through the first, second, and third years, my inner feelings evolve each year, and my understanding and experience of speculative trading deepen. Only through continuous reflection on the market have I gained insights over the years.
Today, I would like to share some insights I've gained in the speculative market for your reference.
Success equals small losses plus various profits, accumulated many times.
Avoid significant losses by prioritizing survival. When dangers to this principle arise, abandon all other principles.
The way of trading is to guard against defeat and attack the enemy that can be won.
Many people perform exceptionally well in simulations, even doubling their investments within a few weeks. However, once they trade with real money, they often incur losses. Their most common reaction is to continue researching technical analysis methods, hoping to improve success rates to make money.
In fact, this approach is a detour and unnecessary. Because usually, technical analysis only accounts for about 20% of overall trading ability; its importance is not significant. Many experts have a low success rate but can continuously make profits. If your simulated trading performance is very good, it indicates that your technical skills are excellent and there is no need for further study. Instead, focus your energy on other aspects, such as capital management, position increases, and grasping long-term trends.
You must stick to your good cards and reduce your bad cards. If you cannot hold onto your good cards, how can you make up for the losses caused by the bad ones? Many decent traders end up giving back all their profits because they are unwilling to stop trading when losing money. When I am losing money, I tell myself: you cannot continue trading; wait for clearer market conditions. And when you have good cards, you need to be patient; otherwise, you will not be able to compensate for the losses incurred from bad cards.
The most common mistake among traders is trading too frequently. They do not select appropriate trading opportunities carefully. When they see market fluctuations, they impulsively enter trades, which is akin to forcing themselves into trading rather than proactively and patiently waiting for good trading opportunities.
We are able to profit because we have patiently done a lot of work before entering the market. Many people become careless about trading once they make a profit, leading to frequent operations, and the subsequent losses can be unmanageable, resulting in significant losses, even wiping out their initial capital.
Whenever I enter the market, I always pre-set stop-loss points; this is the only way that allows me to sleep soundly. I always avoid placing stop-loss points at prices that the market can easily reach. If your analysis is correct, the market should never retrace to the stop-loss point. If the market reaches the stop-loss point, it means that this trade was a mistake.
My worst trade stemmed from impulsiveness. Based on my trading experience, the most destructive mistake in trading is being overly impulsive. Anyone making trades should follow established trading signals and never hastily change their trading strategy due to momentary impulses. Therefore, avoiding impulsiveness is the first principle of risk control.
I have been trading for over 10 years, and if I hadn't learned to stay calm early on, I would have been driven mad by the ups and downs of my trading career. Traders are like boxers; the market can hit you hard at any time, and you must remain calm. When you are losing, it means the situation is against you. Don't rush; take your time. You must minimize losses and protect your capital. When you suffer significant losses, your emotions will be greatly affected, and you must reduce your trading size and consider your next trade after a while.
The reason I can achieve such a high profit rate is that I fear the market's unpredictable changes. I find that successful traders are usually those who are cautious about the market. This fear compels me to carefully choose entry opportunities. Most people do not wait for the market to clarify before entering; they often enter the forest in the dark, while I wait until dawn. I do not predict the direction of market movements before they happen; I let the market inform me of the direction. Choosing and waiting for foolproof opportunities before attacking is crucial; otherwise, I will only retreat. This is my most important trading principle.
Do not let the joy of profit cloud your judgment; remember, the hardest thing is to sustain profits. Once you make money, you will want to continue making more. This can lead you to forget the risks and doubt the correctness of your established trading principles, which is the cause of self-destruction. Therefore, you must remain cautious at all times; be extremely careful when losing money, and even more cautious when making money.
Trading strategies must be flexible to respond to market changes, demonstrating your cautious approach. The most common mistake traders make is sticking to rigid trading strategies. They often say, 'Why is the market completely different from what I thought?' Why should it be the same? Isn't life full of uncertainties? When your critical stop-loss point is breached, it is highly likely that you are facing a volatile market or a trend reversal. At this point, how can you continue with the trend? Therefore, you must wait cautiously for matters to clarify rather than recklessly continuing operations.
Before entering the market, take a moment to think carefully:
Think about how many professional skills you have to support yourself in the market.
Consider whether your mindset can withstand the ups and downs of the market.
Consider whether your limited funds can handle infinite opportunities and losses.
There are plenty of navigational maps among the sunken ships in the sea.
The most important factor for trading success lies not in which set of rules is used but in your self-discipline.
Time determines everything.
Life is not just a battle of strategies; to some extent, it is also a competition of time and life.
If Buffet had lived 10 more years, even with just a 5% continuous profit each year, his total wealth growth would be enough to dominate the world.
Remember to avoid overtrading.
The speculative market is a free market that can be traded at any time. At any given moment, there is always a market open somewhere in the world, with dozens of speculative products available for trading and profit opportunities at different times. Many traders develop a habit of constantly monitoring the market, which can lead them to impulsively trade, sometimes even several times a day, unwittingly increasing their positions to a dangerous level.
Overtrading not only increases your trading costs but can also lead to losing oneself in the dilemma of trading for the sake of trading.
Accurately grasp market trading.
While there are many opportunities to profit in the speculative market, not every trading opportunity is worth grasping and pursuing. Capital and personal energy are always limited, and maximizing the value of funds and energy requires careful strategy. This means you should only enter the market when significant movements occur, ensuring that one profitable trade offsets several smaller profits. This approach saves energy and maximizes returns.
Focus on opportunities for price breakthroughs.
When a price breakout occurs in the market, especially at key levels, it signifies the emergence of important profit opportunities. When market prices have been in a long-term consolidation state, any breakout in upward or downward movement, accompanied by trading volume, is a good time to establish new positions.
Develop trading plans and risk control strategies.
Speculative trading, under the influence of leverage, must be accompanied by trading risks. These risks can be fatal under leverage, so it's crucial to establish various contingency measures before trading, such as how to set stop-losses and the implementation of position increases and decreases.
Summarize the trading mistakes you have made.
In trading, we must detail and record every mistake we make, deeply investigate the reasons and related factors, and regularly check to see if we are repeating mistakes. This way, you can make faster progress.
Today's sharing ends here~
Tete has traversed the market for many years, deeply understanding the opportunities and traps within. If your investment is not going well and you feel dissatisfied, leave a comment with 999 and wait patiently!
$NIL $DOGE
