If you are in a losing position with your contract and want to turn losses into profits, read carefully!
1. Learn to take profits and cut losses
The market changes rapidly, so it is essential to learn to take profits and cut losses. This is not as difficult as it sounds; taking profits is about controlling your greed. A cryptocurrency will not rise indefinitely, nor will it fall endlessly; everything has a cycle. 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 cryptocurrency market is never-ending, but the money in your account can be lost entirely.
Cutting losses means giving up on sunk costs, which is also tough. You might think that holding on a little longer will lead to a reversal in the market, but don't think that way. If you're wrong, you're wrong; you need to acknowledge it and stand firm. But this can truly save your life.
2. Don't trade too frequently
A big taboo is to always think about making profits from both sides. Very few people can achieve this; if you can profit from one side, be content with that. Another point is transaction fees. Low leverage is manageable, but high leverage can be painful. You lose 1-2 percentage points of profit as soon as you open a position, so you must ensure that this trade can make money; otherwise, it is meaningless to open that position.
3. Learn to stay in cash
When you don't understand the market, don't blindly open positions. At this point, you might say that missing out on opportunities is painful. But I must ask you, which is more painful: missing out or losing money? Not understanding the market and blindly opening positions is no different from gambling!
4. Absolutely avoid heavy betting
Never, ever go all in with heavy positions. A sudden unexpected event can wipe you out. For example, if the market is rising as expected, and then a major news event causes it to plummet, and you haven't set a stop-loss, then you're finished! So, don’t rush; always go in with light positions and prioritize stability. The cryptocurrency market is not lacking in opportunities.
5. Be sure to align knowledge and action
This point is indeed quite difficult; even I sometimes cannot fully achieve it. Human weaknesses are hard to grasp!
I was once a novice myself; I initially didn’t understand these most basic issues and opened positions blindly without any plan! After being in the industry for a while, you will realize that the cryptocurrency market can truly change your destiny! The premise is that you must have a mindset that far surpasses others, the courage to take risks, the decisiveness to cut losses promptly, and the determination to survive at all costs! Otherwise, you will never become one of that 1% of destined individuals!
