If you are in a losing position with your contracts and want to turn losses into profits, you need to read this article carefully. Following these points can help you make a profit.
1: Learn to take profits and cut losses.
The market changes rapidly, so you must learn to take profits and cut losses. This is not as difficult as it sounds. Taking profits controls your greed; a cryptocurrency will not rise indefinitely, nor will it keep falling; everything has a cycle. Therefore, taking profits becomes especially important. Don't always worry about closing your positions too early and missing out on future profits! You must remember that the money in the crypto world is endless, but the money in your account can be completely lost.
Cutting losses means giving up on sunk costs, which can be difficult. Don't always think that if you hold on, the market will reverse in the next second—don't think like that. If you're wrong, you're wrong. If you've made a mistake, admit it; brace yourself and accept the pain. Although it hurts to make sacrifices, it can save your life.
2: Do not trade frequently.
A major taboo; don't always think about profiting from both sides. Wake up! Not many people can do that. Be content if you can profit from one side. Another point is the transaction fees; it's manageable with low leverage but painful with high leverage. When you open a position, you lose 1-2% of your potential profit immediately. You need to ensure that this trade can make money; otherwise, it's meaningless, and you end up giving all your profit to the market makers as fees!
3: Learn to stay out of the market.
When you don't understand the market, don't blindly open positions. You might say that missing out on the market is uncomfortable. So let me ask you, which is worse: missing out or losing money? If you don't understand the market and can't grasp the direction, blindly opening positions is no different from gambling!
Trading is about having a probability advantage; no one can accurately predict whether the market will rise or fall. The market changes too quickly; you can only say that there is a high probability of either rising or falling.
4: Take it step by step.
Don't always think you can become a big shot overnight; you can't rush to eat hot tofu!
The crypto world won't make you rich overnight. For example, if you have a capital of 100 and go long with 10x leverage, your position is 1000. If it rises by one point, you earn 10 dollars; if it rises by two points, you get 20 dollars—a breakfast's worth! Now, working in a factory earns 15 dollars an hour. If you open three or four trades a day with a win rate of 60-70%, isn’t that more comfortable than working in a factory?
5: Never go all in with heavy positions.
Absolutely do not go all in with heavy positions. An unexpected event could wipe you out. For example, if the market is expected to rise and suddenly a major news event causes it to plummet, and you haven't set a stop loss, you're done! So, don't be impatient; always trade with light positions and prioritize stability. The crypto market is not short of opportunities; it will always be there, at least for the next 10 to 20 years. So don’t be deceived by immediate illusions!
6: You must align knowledge with action.
This can indeed be quite difficult, including for me sometimes. Human weaknesses are hard to grasp!
Initially, I didn't understand these basic issues. I opened positions blindly and without a plan! After being in the industry for a while, you'll realize that the crypto world can truly change your destiny! 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 against all odds! Otherwise, you'll never become one of the 1% who are destined for success!
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