If you are in a losing position with your contract, then you need to read this article carefully. Please make sure to follow these points.
Ensure that you can achieve profitability.
A share of insights from an eight-year veteran, the following points are very important.
1. Learn to take profits and cut losses.
I’ve mentioned this many times: the market changes rapidly. You must learn this. It's not difficult; controlling your greed is key to taking profits. A cryptocurrency will not rise endlessly, nor will it fall continuously; there are cycles. Therefore, taking profits becomes particularly important. Don’t say you exited too early and missed out on profits; remember, the money in the cryptocurrency market is never-ending for you, but the money in your account can be completely lost.
Taking a loss means giving up sunk costs; this is also very difficult. Do you think that if you hold on to a position, it will reverse? Never think this way. If you're wrong, you're wrong; acknowledge it. Stand tall when taking hits. While it hurts to cut off a limb to survive, it genuinely saves your life.
Just to reiterate, when opening a position, ensure that you have enough margin for error. The direction may be correct, but if your volatility margin is too low, you can easily be thrown off the train.
2. Do not trade frequently.
A big taboo: Are you 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 about transaction fees; with low leverage it’s fine, but with high leverage, it becomes painful. When you open a position, you immediately lose 1-2 points of profit, so you must ensure that this position can make money; otherwise, opening it is meaningless.
3. Learn to stay in cash.
When you don't understand the market, don't open a position. At this point, you might say that missing out on the market is uncomfortable. So I have to ask you, which is more uncomfortable: missing out or losing money? Opening a position without understanding the market is no different from gambling.
Trading is about having a probability advantage; no one can accurately predict whether it will rise or fall. The market changes too quickly, and you can only say that there is a high probability of either rising or falling.
As a side note, the top two exchanges have opened a copy trading area... If you're unsure about opening a position and often make incorrect judgments about the direction, you can try the copy trading area and selecting the right trader is also very important.
4. Progress gradually.
Don't think you can become a big shot overnight; this thing requires gradual progress.
The cryptocurrency market won't make you rich overnight; for instance, if you start with 100, leverage it 10 times, your position is 1000. If it rises by one point, you make 10, and if it rises by two points, you make 20. That’s just enough for a breakfast! Nowadays, working in a factory earns you 15 per hour. If you make three to four trades a day with a win rate of 60-70%, it's more comfortable than working in a factory.
5. Do not use high leverage to gamble.
Don't use high leverage to gamble; a little accident can wipe you out. It was originally expected to rise, but a sudden heavy news can turn things around, and if you haven't set a stop loss, then it's over.
Stay rational and never get overly emotional, especially after a liquidation (this is the consequence of not setting a stop loss, leading to a series of chain reactions; setting a stop loss becomes particularly important).
At this point, you really want to recover your losses; you must let rationality prevail. If you're afraid you can't control yourself, you can enable the contract cooling-off period.
Don't think that by enabling the contract cooling-off period, you've missed out on this wave of the market. The market is not lacking in opportunities; they always exist, at least for the next 10 to 20 years.
6. Be sure to align actions with knowledge.
This point is indeed quite difficult, and sometimes I can't fully achieve it either. Human weaknesses are very hard to grasp.
I will make updates if I think of other points later.
I was once a rookie too; I didn't understand these basic issues and opened positions randomly without a plan. After being in the industry for a long time, I realized that the market can really change your fate.
If you're reading this article, I hope it can be of some help to you.
