If the contract is still in a losing state, and you want to turn losses into profits, then you must take a look at these methods.
Iron Rule One: Take profit and stop loss, the foundation of survival.
In a rapidly changing market, only those who master take profit and stop loss can survive.
Take Profit: Taming the beast of greed. Recognize the cyclical nature of the market — no coin rises forever, nor does any coin fall indefinitely. Do not regret 'selling too early,' as opportunities in the crypto space are endless, while your capital is limited.
Stop Loss: The courage to sever for survival. Decisively abandon
sunk costs! Do not fantasize about 'holding until reversal.' Acknowledging mistakes is the starting point of trading; though painful, the act of cutting losses is the only rule for preserving life. 'Taking hits standing firm' is the attitude; timely stop loss is the action.
Iron Rule Two: Abandon high frequency, focus on win rate.
Obsessed with 'double profits from long and short'? It is truly delusional! Capturing a single-sided trend precisely is already rare.
Beware of hidden erosion from fees: Especially with high-leverage contracts, the cost is incurred as soon as you open a position (1-2 points of profit evaporates). Ensure that each trade has a positive expected value (expected profit > fees + potential loss), otherwise, you are merely working for the exchange.
Iron Rule Three: Empty positions reign, quietly await opportunities.
Market conditions unclear? Staying put is the best strategy.
Is the regret of missing out comparable to the pain of cutting losses? Forcing a position when direction is unclear is akin to gambling with blindfolds.
The essence of trading is probability gaming: No one can predict fluctuations accurately; it is only worthwhile to act when high probability advantages appear.
Iron Rule Four: Progress gradually, with compound interest at the core.
Abandon the delusion of 'getting rich overnight!' Contracts are a long-term battle, not a quick resolution.
Start with light positions, accumulating small wins into large victories: For example, with 100 in capital and 10x leverage, holding a position of 1000. A 1% increase yields a profit of 10. Over time, a stable win rate (60-70%) brings about the effects of compound interest, far surpassing blind heavy betting and physical labor.
'Hot tofu' burns the mouth; 'getting fat' takes time.
Iron Rule Five: Strictly control position size, always avoid all-in.
Heavy all-in = self-destruction! Any sudden black swan event (policy changes, spikes, whales dumping) could cause you to instantly go to zero.
Light and steady positions lead to longevity: Maintain sufficient margin to provide a buffer for sudden fluctuations.
The crypto space is not lacking in opportunities; the market will exist indefinitely (expected in the next 10-20 years). Do not be deceived by current illusions; staying alive gives you the right to participate in the next round of feasts.
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