If your contract is in a losing state and you want to turn losses into profits, then you need to read this article carefully. Follow the six points below to ensure that you can achieve profitability 100%.
One: Learn to take profits and cut losses.
The market changes rapidly; you must learn to take profits and cut losses. This is not as difficult as it sounds. Taking profits controls your greed. A currency will not rise indefinitely nor will it fall continuously; everything has cycles. Therefore, taking profits becomes particularly important. Don’t always worry about closing positions too early and missing out on future profits! You must remember that the money in the crypto world is endless, but the money in your account can run out.
Cutting losses means giving up sunk costs, which is also very difficult. Don’t always think that holding a position will lead to a market reversal in the next second. Never think that way. If you’re wrong, you’re wrong; you have to acknowledge it. Stand tall when taking hits. Cutting losses, although painful, can save your life. Two: Don’t trade frequently.
A major taboo: don’t always think about double-dipping on long and short positions. Wake up, not many can do that. Being able to profit from one side is already good enough. Another point is the transaction fees; low leverage is okay, but high leverage becomes painful. You lose 1-2 points of profit as soon as you open a position. You need to ensure that this trade can make money; otherwise, it’s meaningless, and all your profit goes to the market maker as fees!
Three: Learn to keep your position empty.
When you don’t understand the market, don’t blindly open positions. At this point, you might say that missing out on market opportunities is painful. Then I have to ask you, is it more painful to miss out or to incur losses? Opening blind positions without understanding the market and grasping the direction is no different from gambling!
Trading is about having a probability advantage. No one can accurately predict whether the market will rise or fall. Market changes too quickly; one can only say there is a high probability of rising or falling.
Four: Progress step by step.
Don’t always think you can become a big shot in one go; haste makes waste!
The crypto world won't make you rich overnight. For example, if you invest 100 and go long with 10x leverage, your position will be 1000. If it rises by one point, you earn 10, and if it rises by two points, you earn 20, which is enough for a breakfast. Nowadays, working in a factory earns about 15 per hour. If you make three or four trades a day with a win rate of 60-70%, it's not worse than working in a factory.
Five: Never go all in with heavy positions.
Absolutely do not go all in with heavy positions; a sudden unexpected event could wipe you out. For example, if the market is rising as expected and then a major news event suddenly causes a sharp downturn, and you just happened not to set your stop-loss, then it's over! So don’t rush; always maintain a light position and prioritize stability. There will always be market opportunities in the crypto world, at least for the next 10 to 20 years, so don’t be deceived by the illusions in front of you!
Six: You must know and act in unison.
This point is indeed quite difficult, and even I sometimes cannot fully achieve it; the weakness of human nature is hard to grasp!
I used to be a novice too, and I didn’t understand these basic issues at first. I opened positions blindly and without a plan! After being in the industry for a long time, you will realize that the crypto world can truly change your fate! The premise is that you must have a mindset far superior to others, the courage to dare to fight, the decisiveness to cut losses promptly, and the ruthlessness to survive even at a cost! Otherwise, you will never become one of the 1% destined individuals!