What is the essence of trading?

I have been trading cryptocurrencies for almost a year, I have been liquidated once when shorting Bitcoin, liquidated once when bottom-fishing Ethereum, and when chasing Ethereum after a surge, I had to painfully cut my position by half when my account faced a crash.

I was once lured by those chatty people on Douyin to buy Pixiu coins and had also purchased a membership, crazy cuts... People are as their names suggest...

Contract Trading:

First: Do not hold onto losing positions; if losses exceed 10-30%, you must strictly set a stop loss. Do not hold onto losing positions, do not hold onto losing positions, and do not attempt to average down your cost; it is very dangerous. In case of a black swan event, unless you have unlimited bullets, you will definitely get liquidated. Do not put good apples in rotten baskets; being alive has infinite possibilities.

Second: Do not chase after surges, do not chase after surges. When you see a coin suddenly soaring at a very fast pace, do you think the market is starting to rally? Haha, it’s not; that’s just the market maker trying to trap you at the peak. At this time, you must think in the opposite direction. If you can’t resist the urge to go long, why not look for an appropriate time to go short instead?

Third: Before a real big trend starts, there will always be a consolidation phase, washing out the weak hands. At this time, it is best not to participate. When the market suddenly starts, and a green candlestick breaks through the highest point of the consolidation range, do not hesitate, go in more and then hold your position. Set your stop loss below the four-hour candlestick and move your stop loss.