After five years of trading cryptocurrencies, I made 60 million, and every penny behind it is a lesson learned through blood and tears! Some people ask me: 'Can you really make money trading cryptocurrencies?' I have given the answer over five years: Yes! But the prerequisite is that you must understand the rules.
Today, I will share a few key points; this experience is worth 60 million, and I hope it can help you.
1. Currency: Determine which cryptocurrency you want to trade. For example, Bitcoin (BTC), Ethereum (ETH), etc.
2. Position: Decide how much you want to hold. This depends on your money management strategy and risk tolerance.
3. Direction: Determine whether to go long (buy) or short (sell). This needs to be judged based on market trends and technical analysis.
4. Entry Point: Determine at what price level to enter the trade. You can decide based on technical indicators, support and resistance levels, etc.
5. Stop Loss: Set a point to exit losing trades to control risk. Typically, a stop-loss level is set below the entry point.
6. Take Profit: Set a point to exit profitable trades to ensure profits. Typically, a take-profit level is set at the target price.
7. Countermeasures: Develop strategies to respond to unexpected situations. For example, measures to take when significant news or volatility occurs in the cryptocurrency market.
8. Follow-up: Actions after the trade ends. For example, recording trade logs, summarizing experiences and lessons, adjusting strategies, etc.
After developing the strategy, the next thing you need to do is execute it, then wait patiently, and strictly adhere to trading discipline +.
Quietly wait for the market to develop towards your expected targets. As time goes by, there are only two outcomes:
Loss: Summarize experiences, accumulate lessons, become more resilient; losses are a normal trading cost, very normal.
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Big Profit: Secure your gains; you can increase your position or adjust your stop-loss level to seek more profits.
A trading process is thus considered complete.
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If you are also a tech enthusiast and are deeply researching technical operations in the cryptocurrency world, you might as well [check the comments section] to get the latest cryptocurrency intelligence and trading tips.