Having struggled in the digital currency field for 10 years and gone through four years of arduous exploration, I have deeply understood a truth: the essence of trading cryptocurrencies lies in simple and continuous practice. Only by reaching the peak can one gain profound insight. Today, I am willing to generously share the trading trend maps I have mastered, selflessly sharing them with those who are striving to climb this rugged mountain road. May the following essence lead you to understand the deep logic and essence of trading!
An ancient saying goes: "Without windfall, one cannot be rich; without night forage, a horse cannot gain weight." Many people enter the crypto space with dreams of overnight wealth, hoping to reach the peak of life. However, due to a lack of effective methods, they often find themselves at odds with their wishes, ultimately ending up worse off. Thus, they embark on a journey of knowledge, whether by buying books to self-study, searching online, or seeking advice from seniors.
1. The wisdom of holding positions
You must have the courage to hold onto profitable positions, while decisively cutting losses on losing positions. Don't let profits slip away easily, and don't let losses expand endlessly.
2. The art of position management
Do not overly rely on so-called technical levels; the real key lies in position management. Knowing when to take a heavy position and when to take a light one is a core strategy in trading. Long-term investments require patience, and each order should not be too heavy; short-term trading must closely follow market rhythms.
3. Grasping the trend
Going against the trend is dangerous; beingfriend the trend can lead you to success. When sailing within the trend, one must always remain alert and not be deceived by the market's false prosperity. You can wait for the trend to become clear before entering, but once a trend reversal is detected, you must exit quickly to avoid heavy losses.
4. Strategies for taking profits
Taking profits is an art, and there is no need to pursue extreme highs. Some practical methods for taking profits include: closing positions the next day to lock in profits; closing on the first line when seeing a bearish candle; closing if new highs are not made to avoid greed; and closing if it falls below the moving average to follow market rules.
5. The importance of cutting losses
Cutting losses is the lifeline of trading and should not be ignored. One effective method of cutting losses is the single candlestick stop-loss method, where the lowest point of the entry candlestick must not be breached; once it is breached, one should cut losses. Your stop-loss points should be clear before trading, and you must mentally prepare to avoid hesitation after a loss. Good positions should be cherished, while bad positions should be decisively cut, so as to remain unbeaten in trading.
Focus on the unchanging things, and you will see more clearly. The price of Bitcoin changes, but its underlying logic remains unchanged, and its role as a disruptive value storage method also remains unchanged.
If you have lost money, turning that loss into knowledge is still worthwhile. With knowledge, even if you lose a fortune, you can earn it back.
If the pattern determines life, then what determines the pattern?
Many retail investors often find that many people have good strategy plans and analyses but fail to execute them.
In life, we lack self-discipline; in trading, it is often related to mindset and confidence. If the reasoning behind a planned strategy is insufficient, and the ideas of long and short positions and entry points are too random, hesitation becomes likely when a sharp drop or rise reaches your entry point. Additionally, being overly cautious is actually a lack of flexibility, reflecting poor strength, using caution as an excuse.
An excellent trader is cultivated on the battlefield, not in theoretical textbooks; if the mindset is incorrect, fearing stop losses, one cannot view gains and losses with a calm heart, overly magnifying stop losses and being timid.
It takes more than a day to freeze three feet of ice; it takes more than a day of effort for water to wear through stone. Everything requires gradual accumulation, and nothing can be achieved overnight, including investing. If you enter the investment market with the expectation of becoming rich overnight, profits may drift further away from you.
Getting rich overnight is not as good as a steady stream of income; large ups and downs are not as comforting as steady profits.
Having navigated the market for many years, deeply understanding the opportunities and traps within, if you are struggling with investments and feel frustrated about losses, you can contact Ping Lun Qu and leave 888 for collaboration on strategic trades.