The Survival Rules in the Cryptocurrency World, Keep in Mind:
1. Be Cautious When Averaging Down: After being caught in a position, avoid blindly and anxiously averaging down to dilute costs. The reversal of a downtrend does not happen overnight; frequent averaging down is often just self-comfort and can easily lead to adding positions at wrong levels, making the losses larger. Ask yourself: Why do I dare to average down at this moment? What is the basis?
2. Discipline is a Lifeline: Pre-establish an operational plan (such as market point levels, individual coin prices), and strictly execute it during trading. If you change the plan arbitrarily due to market fluctuations or emotional disturbances, it is equivalent to gambling, and on-the-spot decisions are likely to go wrong.
3. Reduce Frequent Trading: Those who suffer heavy losses are often enthusiastic frequent traders focused on ultra-short-term trading. In contrast, investors who patiently hold and trade less, even with average skills, often have relatively controllable losses. Avoid high-frequency trading in cryptocurrency.
4. Act Within Your Means, Do Not Affect Your Life: Never continuously “inject blood” into your cryptocurrency account, especially avoid using funds that impact your basic living standards. “In the cryptocurrency world, money flows like water; in life, one is often in need” is a true depiction. Before establishing a stable profit model, continuously increasing investment will only amplify risks.
5. Losses Are Warnings, Reflection Is Key: Losses expose the flaws in the trading system. At this time, the primary task is not to invest more money to fill the hole, but to calmly reflect, review, and improve strategies. Once you find effective methods, then consider increasing investment later.