Some thoughts on recovering losses in the cryptocurrency market! If you are trading contracts, spot trading, or swing trading, keep the following points in mind!

1. Trading contracts is about risking a small amount for a larger return, experiencing losses is normal. However, after hitting a stop loss, two types of people emerge: some will frantically open new positions, while others will enter a cooling-off period. My suggestion is that if you frequently hit stop losses, you should calm down, temporarily stop trading, and adjust your strategy!

2. Do not rush to succeed; trading is not a means to get rich overnight. When facing losses in trading, maintain a calm mindset, do not rush to open positions, and definitely do not go all in with large amounts.

3. It is important to recognize the major trend. When you see a one-sided market through the charts, you should go with the trend and not trade against it. Trading against the trend is the root of losses; whether you are a novice or an experienced trader, there is a tendency to trade against the trend. However, once a market trend is established, trading against it can lead to severe consequences, so we must learn to go with the trend and patiently wait for opportunities to act.

4. You must pay attention to the win-loss ratio; otherwise, it will be difficult to make money. Ensure that your profits are as large as possible compared to your losses, with at least a 2:1 ratio before considering opening a position.

5. Frequent trading is a major taboo in contract trading. If you are not an expert in contracts, you must restrain the impulse to blindly open positions, especially as a novice player who is full of passion for the market and wants to seize every opportunity. However, most so-called opportunities will lead to losses.

6. Do not hold onto losing positions; holding onto losing contracts is a major taboo, especially for beginners. You must ensure you have stop losses in place. Holding onto positions is the beginning of a downward spiral. I remind you again: do not hold onto losing positions. If you feel lost due to market fluctuations and don’t know how to deal with a losing situation, or if you feel misled during your trading process.