After 10 years of trading coins, I went from being deeply in debt to becoming wealthy, and I have understood 9 rules of the crypto world. The content is not much, but the value is high. Today, I share it with everyone. Understanding just a few of these will make things smoother.
1. Capital management: Act according to your capabilities, diversify risks.
With 100,000, focus on holding one coin: When capital is limited, concentrate on holding one promising coin and deeply research its fundamentals and technical aspects.
With 200,000 to 300,000, you can play with two coins: When you have a bit more capital, you can diversify into two coins to reduce the risk of a single coin.
With 500,000, three to four coins are sufficient: When capital increases further, hold at most three to four coins to avoid excessive diversification.
No matter how much capital you have, do not hold more than five coins: Regardless of the amount of capital, the number of coins held should not be too many to avoid management difficulties. In a bull market, concentrate your firepower; in a bear market, reduce your positions: During a bull market, focus your funds on the most promising coins; during unfavorable market conditions, operate lightly to reduce losses and withdraw in time.
2. Trend is king: Follow the market, do not go against the trend.
Read news, learn techniques: Understand market dynamics and technical indicators to improve investment success rates.
A rebound after a decline is often a trap; an uptrend correction may be a trap: Do not blindly catch the bottom or chase highs; operate according to the trend.
Do not guess the main force's thoughts: The operations of the market's main players are hard to predict; focus on your own investment strategy.
3. Only act when the market is lively; respond flexibly.
Act when the market is active: When market enthusiasm is high, investors are more positive and more likely to seize opportunities.
Operate flexibly, do not be rigid: Adjust your strategy in a timely manner based on market changes; do not stick to old models.
4. Stop Loss and Take Profit: Protect the principal, lock in profits.
Set a fixed stop-loss point: Stop loss in time to avoid greater losses.
Gradually raise the selling price: When profitable, gradually increase the selling price to ensure profits are not lost.
5. Buy quickly and sell decisively: Make prompt decisions to avoid hesitation.
Buy quickly: Act decisively when opportunities arise to avoid missing out.
Sell decisively: Sell decisively when reaching your target or when the market turns, to avoid losses caused by greed.
6. Think carefully before increasing positions.
Ask yourself: Before increasing your position, consider if you are willing to invest new funds in the current situation. If the answer is yes, then consider increasing your position.
7. Focus on long-term, supplemented by short-term.
Avoid frequent short-term speculation: Short-term trading can easily lead to confusion and affect your mindset.
Follow the trend: Big money should follow the market trend and hold potentially valuable coins for the long term.
8. Do not blindly catch the bottom; treat the market rationally.
A large decline does not mean you can catch the bottom: A significant market drop does not necessarily mean the bottom has been reached; blindly catching the bottom may lead to further losses.
Few people make money in the market: Only a small number of people can truly make money in the market; stay rational and do not follow the crowd blindly.
Final advice.
A big bull market is not only a test of price fluctuations but also a test of investors' mentality. Stay calm and follow the above iron rules to succeed in the bull market.
Advance steadily through bear markets and ultimately achieve wealth growth.
Still the same saying, if you don't know what to do in a bull market, click on my profile, follow me, for bull market spot planning, contract passwords, and free sharing.
Continue to pay attention to BTC ETH BNB.
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