If you are in a losing position with your contracts and want to turn your losses into profits, then you need to read this article carefully. Following the six points below will 100% ensure that you can achieve profitability.
1: Learn to take profits and cut losses.
The market changes rapidly; you must learn to take profits and cut losses. This is not as difficult as it sounds. Taking profits controls your greed. A bullish market will not rise endlessly, nor will a bearish market fall indefinitely; there are cycles. Therefore, taking profits becomes particularly important. Don't always worry about closing positions too early and missing out on future profits! You must remember that money in the crypto space is never-ending, but the money in your account can be lost completely.
Cutting losses means giving up on sunk costs, which is also difficult. Don't always think that if you hold onto a position for a moment, the market will reverse in the next second. Don't think that way. If you're wrong, you're wrong; you have to admit it. Stand tall after taking a hit. Although it hurts to cut losses, it can truly save your life.
2: Do not trade frequently.
A major taboo is always thinking about making profits from both sides. Wake up; not many people can do that. Be content with making money from one side. Another point is the transaction fees. If you're trading at low leverage, it's manageable; if it's high leverage, it can be painful. When you open a position, you might lose 1-2 points of profit immediately. You need to ensure that this trade can make money, otherwise, it would be meaningless; all your profits would just go to the market makers as fees!
3: Learn to avoid missing opportunities.
When you don't understand the market, don't blindly open positions. At this point, you might say that missing out on opportunities is painful. So let me ask you, which is more painful: missing out or losing money? Not understanding the market and blindly opening positions is no different from gambling!
Trading is all about having a probability advantage. No one can accurately predict whether the market will go up or down. The market changes too quickly; you can only say that there is a high probability it will rise or fall.
4: Take it step by step.
Don't always think you can become a big shot in one go; haste makes waste!
The crypto space won't make you rich overnight. For instance, if you use a capital of 100, go long at 10x leverage, your position would be 1000. If it goes up one point, you make 10 dollars; if it goes up two points, you make 20 dollars. That's enough for a breakfast! Nowadays, working at a factory earns you 15 dollars an hour. If you trade three to four times a day with a win rate of 60-70%, it’s more comfortable than working in a factory.
5: Avoid high leverage gambling.
Absolutely, do not engage in high leverage gambling. If something unexpected happens, you could lose everything. For example, if the market is expected to rise but suddenly a significant piece of news causes it to plummet, and you haven't set a stop-loss, you are doomed! So, don’t rush; always trade with light positions and prioritize stability. The crypto space is not short of opportunities; they will always be there, at least for the next 10 to 20 years. So don’t be fooled by immediate appearances!
6: You must integrate knowledge and action.
This point is indeed quite difficult, including for me, as I sometimes cannot 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 blindly opened positions without a plan! After being in the industry for a long time, you will realize that cryptocurrency can indeed change destinies! The prerequisite is that you must have a mindset that far exceeds 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 success!
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