1, The usable area of toilet paper is only about 10%; the remaining 90% is to prevent your hands from touching waste. The same principle applies to the crypto world: 90% of your wealth is earned in the 10% of the time you invest. Therefore, it’s important not to be fully invested; you need to befriend time and use the 90% to wait for opportunities. New investors are often unwilling to be in cash or feel uncomfortable being partially invested; they must jump in. I understand this fear of missing out; if it resonates with you, please raise your hand. (Don’t be fully invested; wait for the right moment.)
2, Whether it's spot trading or contracts, you must set profit-taking and stop-loss orders. Knowing how to buy is not impressive; knowing how to sell is the real skill. Clearly, this trade is profitable, but human greed can overcome it, leading to being trapped instead. Haha, I’m talking about you; I believe everyone has experienced this, and that’s the charm of profit-taking. Now, let’s talk about stop-loss orders. Setting a stop-loss is not really about stopping your losses; it’s actually about improving your capital efficiency. For example, if you’re trapped in a trade and cut your loss at 100 USD, you believe that over time, you’ll turn a profit again. But let me tell you, even if you eventually turn a profit, you still incur losses because of the time cost. Even if you stop-loss, you can reinvest that capital into a higher-yield opportunity. Especially in a bull market, if you’re trapped in a position and can’t get out, waiting a week just to break even on a floating loss of 100 USD is not ideal. But if you had set a stop-loss, utilized that capital correctly, in one week you could have made not just 100 USD in profits. (I don’t care if you know how to buy; you must learn how to sell.)
3, When others buy something and make a fortune, you must be afraid of missing out when you hear the news. Haha, by the time you hear the news, it's already too late. You’re entering at a high position, and the risk is huge. (Don’t get caught up in FOMO emotions; stay away from those who give you FOMO feelings.)
4, Don't have faith in a certain coin; be a player who makes money and leaves. There’s nothing wrong with that. Identify the opportunity, make your profit, and quietly wait for the next chance. Don’t think that if you choose the right opportunity, even a pig can fly. When we little investors take off, the first thing to consider is not how to fly higher, but how to land safely. Otherwise, when the wind stops, and you haven't left, the first to crash will be you. (Take the profit while you can; the crypto world isn't about who makes money faster, it's about who can survive longer.)
5, Don’t believe in getting rich overnight, but do believe in the power of compound interest; it’s truly powerful. (The eighth wonder of the world; those who understand, understand.)
6. Don’t use money that affects your life to trade cryptocurrencies. I have a younger brother who, when he first met me, was humble and cautious. Late at night, he sent me voice messages asking about KDJ, MACD, and MA lines. I taught him a bit of the basics, and he thought he had found the secret to invincibility, heavily investing. In three months, he turned 20,000 into 80,000. I repeatedly advised him against it, but he showed me screenshots of his profits, saying I had lost my ambition and was too conservative. You tell me, is it easy for a college graduate to find a job? Earning a few tens of thousands in a short time, he boldly quit to become a professional trader. Then, on December 4th, the market crashed, and he sent me shaky voice messages; the market taught him a harsh lesson. (Going all in is not suitable for the crypto world; before entering this circle, you should at least leave yourself 1-2 exit paths.) Entering the market has risks; invest cautiously.
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