Fifteen iron rules that must be strictly followed in crypto trading
One, capital is paramount, survival creates opportunities. The first rule of investing is to protect your capital; survival is the foundation of long-term competition in the crypto market; without capital, all actions are in vain.
Two, restrain greed, steady profits come from small gains over time. Don’t always think about getting rich overnight; not being greedy helps you secure profits, consistently earning small profits can lead to considerable returns in the long run.
Three, focus on varieties, trade along with market trends and manage positions. Don’t spread your focus too thin across too many varieties; never fully invest, trade according to market trends, as trends are king.
Four, trade lightly and steadily, avoid heavy positions. Don’t over-leverage, don’t stubbornly hold losing positions, and don’t trade frequently; these three ‘no’s are key to controlling risk.
Five, think deeply before buying, and decisively cut losses when selling. Don’t act impulsively when buying; take time to think; don’t hesitate when selling; execute stop losses immediately when necessary, don’t delay.
Six, profits are endless, but losses can go to zero. The market can yield endless profits, but a single large loss can wipe out your account; managing risk is more important than chasing high returns.
Seven, stop losses are essential, exit without hesitation. Once you hit the stop-loss line, exit unconditionally! Don’t entertain luck; remember, executing stop losses is always the right choice.
Eight, securing profits is key, regardless of short-term or long-term. Don’t get tangled in whether short-term is stable or long-term is stable; tangible profits are what matter, securing profits is the safest strategy.
Nine, the market cycles, extremes inevitably reverse. The cryptocurrency market will always experience 'extremes inevitably reversing'; when prices peak they will fall, and when they bottom out they will rise; understanding cycles is crucial for success.
Ten, wait patiently during market stagnation, rather than trading recklessly. If there’s no market movement, don’t force trades; missing opportunities is normal, just focus on what you can control.
Eleven, waiting for opportunities is strong, blindly seeking opportunities is weak. Don’t rush to actively find trading opportunities; patiently wait for market movements, ‘waiting’ is a hundred times more reliable than ‘searching’.
Twelve, stop when targets are met, energy determines limits. Stop trading once you achieve your profit targets for the day; human energy is limited, and overtrading can lead to mistakes.
Thirteen, stop losses are under your control, profits rely on market opportunities. Stop losses are something you can actively manage, while profits depend on market opportunities; don’t confuse the primary and secondary.
Fourteen, be patient with positions; frequent trading leads to losses. Don’t always think about making quick money through frequent operations; true substantial gains often come from ‘sitting and waiting’.
Fifteen, mindset is fragile, strategy must be executed. In the face of desire, the mindset can easily crumble, so you must strictly adhere to your trading strategy; achieving unity of knowledge and action is key for long-term profits.
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