If you are in a losing position with your contracts and want to turn losses into profits, then you need to read this article carefully. Following the six points below will ensure you can achieve profitability 100%.
One: Learn to take profits and cut losses.
The market changes rapidly; you must learn to take profits and cut losses. This is not too difficult. Taking profits controls your greed. A cryptocurrency won’t rise endlessly, and it won’t fall continuously; everything has a cycle. Therefore, taking profits becomes particularly important. Don’t always fret about closing positions too early and missing out on further profits! Remember, the money in the cryptocurrency market is endless, but the money in your account can be lost completely.
Stop-loss is about giving up on sunk costs, which is also difficult. Don't always think that holding on will lead to a market reversal in the next second; never think like that. If you're wrong, you're wrong; you must admit it. When being hit, stand tall. Though it's painful to amputate for survival, it can indeed save your life. Two: Don't frequently open positions
A major taboo: do not always think about profiting from both sides. Wake up! Not many can achieve that; be content if you can profit from one side. Another point is the transaction fees; lower leverage is okay, but high leverage can be painful. You lose 1-2 points of profit as soon as you open a position. You must ensure this trade is profitable; otherwise, it is meaningless, and your earnings go entirely to the market makers as fees!
Three: Learn to stay out of the market
When you don't understand the market, don't blindly open positions. At this time, you should say that missing out on the market is painful. So I want to ask you, is it more painful to miss out or to incur losses? Not understanding the market and blindly opening positions without being sure of the direction is akin to gambling!
Trading relies on a probabilistic advantage. No one can accurately predict whether the market will rise or fall; the market changes too quickly, so you can only say that there is a high probability of either rising or falling.
Four: Progress step by step
Don't always think you can become a big shot in one go; you can't eat hot tofu in a hurry!
The cryptocurrency market won't make you rich overnight. For example, if you start with 100 and leverage 10 times, your position is 1000. If it rises by one point, you earn 10, and if it rises by two points, you get 20, which is enough for a breakfast. Nowadays, working in a factory earns 15 per hour; if you open three to four positions a day with a win rate of 60-70%, it's more comfortable than working in a factory.
Five: Avoid heavy investment and all-in strategies.
Absolutely, do not use heavy investment and all-in strategies. A sudden mishap could wipe you out. For instance, if the market was expected to rise, but a sudden major news story causes a sharp decline, and you didn’t set a stop-loss, then you’re done for! So don’t rush; always trade lightly. Focus on stability; the cryptocurrency market is not short of trends or opportunities; they will always be there, at least for the next 10 to 20 years. So don't be fooled by the illusions in front of you!
Six: You must ensure that knowledge and action are unified.
This is indeed quite difficult, including for me; sometimes I can't fully achieve this. The weaknesses of human nature are hard to grasp!
I was once a novice too. I didn't understand these basic issues at first and opened positions blindly without a plan! After being in the industry for a long time, you will realize that the cryptocurrency market can truly change your fate! The premise is that you must have a mindset that surpasses others, the courage to take risks, the decisiveness to cut losses in time, and the determination to survive at all costs! Otherwise, you will never become one of the 1% destined for greatness!
