Trading experiences vary from person to person. Here are some of my insights from these years in the cryptocurrency world:
1. The market is unpredictable; respect the market.
The market is always right; do not try to go against it.
No matter how strong the technology, there are always unpredictable factors in the market. Maintain a sense of respect.
2. Plan your trades; trade your plan.
Establish a clear trading plan, including entry points, stop-loss points, and take-profit points.
Strictly execute the plan to avoid emotional trading.
3. Risk management is key.
Limit the risk of a single trade to 1%-2% of total capital.
Do not invest all your funds in one cryptocurrency or one trade; diversify your risks.
Leverage trading requires caution; high returns come with high risks.
4. Patiently wait for opportunities.
Do not trade frequently; wait for high-probability entry opportunities.
The market is not short of opportunities; it lacks patience and discipline.
5. Learn to cut losses.
Stop-loss is the insurance of trading; do not hold onto losing positions.
Losses are part of trading; accepting small losses can prevent larger ones.
6. Emotional control is crucial.
Greed and fear are the greatest enemies of trading.
Do not become complacent when profitable, and do not panic when losing; remain calm.
7. Technical analysis is a tool, not a holy grail.
Technical analysis helps determine trends but cannot guarantee 100% accuracy.
Combine multiple factors such as fundamentals and market sentiment for a comprehensive judgment.
8. Continuous learning and reflection.
The market is constantly changing, requiring continuous learning of new knowledge.
Regularly review trades and summarize the reasons for successes and failures.
9. Do not blindly trust 'experts'.
Others' strategies may not suit you; find your own trading style through independent thinking.
10. Long-term thinking.
Do not pursue overnight riches; trading is a marathon, not a sprint.
Accumulate small victories for big wins; steady profits are the long-term path.
11. Capital management is the way to survive.
Do not trade with essential living funds; only invest spare money.
Protecting the principal is the top priority, and making a profit is the second goal.
12. Accept imperfection.
There is no perfect trade; accept losses and mistakes.
Learn from failures and continuously optimize your trading system.
Among the crowd of cryptocurrency traders, there is only one type of person who makes money: those who have experienced bankruptcy, summarized their experiences, and developed a strong mindset. Without experiencing margin calls and significant losses, one will never understand what a stop loss means; without experiencing profit turning into loss, one will never grasp the mindset shift from heaven to hell.