My personal account took nearly 3 years to grow from 300,000 to 1 million, but when it hit 1 million, it felt like a breakthrough, directly soaring to 40 million. I summarized 12 iron rules, the words are short but very true. If you want to play in the cryptocurrency market for the long term, this article is worth reading carefully. After reading it, you will have an epiphany!
1. In trading coins, only focus on strong coins and only look at coins in an upward trend. Do not pay attention to coins in a downward trend because we don’t have time to accompany the main forces. If a coin is always above the trend line, then hold it patiently. For example, with artificial intelligence at the beginning of the year, as long as it does not break below the 30-day moving average, hold it until it drops below that level to exit.
2. Follow the main trend method. When the market trend is good, there will definitely be a main trend direction. If this main trend is weak or simply nonexistent, it indicates that the recent market risk outweighs the opportunity, and you should patiently wait for the emergence of the main trend without blindly trading.
3. Don't put all your eggs in one basket; the same applies to trading coins. Don't invest all your funds in one coin. Even if you are very optimistic, learn to diversify your holdings; do not hold more than 4 coins.
4. Don't always think about buying and selling coins. If you don't operate for a day, you feel uncomfortable. Frequent trading may bring quick pleasure, but it can lead to significant losses; the only ones profiting are the brokers. If you don't have the level for short-term trading, you are not the market maker.
5. After a major loss, take a break; after a major gain, take a rest. From a psychological perspective, a significant loss affects your mindset. It’s hard to remain objective when you are emotionally invested. At this time, you must be aware of your retaliatory trading psychology; trying to recover losses in a single day is a gambler's mentality, which is not advisable. After a major gain, emotions peak, and it is easy to lose your cautious mindset, leading to significant losses after gains.
6. Diversify your holdings; don’t buy a single coin in a heavy position all at once, even if you are optimistic. Even if it later proves you were right, you shouldn’t do it this way because no one knows what will happen tomorrow!
7. Minute-level charts. Many retail investors stare at the minute-level charts all day long. In fact, this not only doesn't help, but it also disrupts your trading mindset. Trading coins also requires a balance of work and rest; spending just an hour to review is actually enough.
8. Pre-market deliberation must surpass your impulsive decisions during the trading period. In cryptocurrency trading, there is a saying: bold assumptions, cautious verification. Through post-market review and pre-market planning, we gain a clear understanding of the current hot market directions, which allows for an anticipatory grasp of current trades. But remember, this anticipation does not equate to prediction. Blind predictions replace market choices with one's subjectivity, which is a major taboo in trading.
9. It is better to miss a trading opportunity than to incur a loss. In trading, opportunities will absolutely knock twice. Identify the issues, neutralize the problems, and focus on the benefits of success rather than the pressure.
10. Traders often ask me a question: How can I improve my trading skills? The simplest way is to keep a trading log, recording all relevant information and experiences about the trades. Without a trading log, many precious experiences will be wasted, and you may repeat the same mistakes. In this regard, a trading log is a tool for capital and risk management. Understanding the problems in trading is the key to solving them. Therefore, set the trading log as a goal.
11. Grasp market hotspots. In actual operations, there should be predictions, trial and error, confirmations, corrections, and position increases. The theoretical loss incurred during trial and error should be far less than the potential theoretical gain. If the outcome after trial and error differs significantly from your expectations, decisively take measures to exit.
12. Think and summarize each trade; bravely face your account and settlement sheet. The probabilities will tell you what to do in the future.
If you cannot overcome psychological barriers, no amount of failure can be transformed into experience.
Playing in the cryptocurrency market is ultimately a contest between retail investors and market makers. If you do not have strong professional skills, you can only be cut! Those who want to layout together and harvest together can come; welcome like-minded people in the cryptocurrency world to discuss together~
The martial arts manual has been given to everyone; whether you can make a name for yourself in the world depends on you.
These methods must be saved and reviewed multiple times.
Useful friends, you can forward this to more people around you who are trading coins. I, the big bet Buddha, learn more about the cryptocurrency industry. You can comment 666 below to directly follow my lead. Having been through the rain, I am willing to hold an umbrella for the retail investors! Follow me, and let's walk hand in hand on the path of the crypto world!
