If you are still losing money in trading cryptocurrencies...
If you are currently losing money in trading cryptocurrencies, spend a few minutes reading this article, and you will find the answer!
After over 10 years of trading cryptocurrencies, I lost money for the first three years and was in debt of 8 million. After self-adjustment, I achieved financial freedom in the last 7 years, stable compound interest, with a monthly income in the seven figures and an annual income in the eight figures!
Today I will share the essence of my trading.
Actually, it is very simple: cut losses when wrong, hold when right, small losses and big profits, make big gains and losses. Specific to each core aspect:
1. Follow the trend: Find a simple moving average to distinguish between long and short positions; go long only above it and short only below it.
2. Trial positions: Act according to the trend, follow the big trend and counter the small trend. When entering the market, consider a sufficiently large potential profit-loss ratio; if entering at this position, if wrong, the loss is small, but if right, the profit is significant, generally at the bottom of a trend or the early stage of a trend.
3. Trial position stop-loss: If a key point is broken, a stop-loss must be executed, no room for luck. If the price comes back, look for another opportunity to enter. Do not have a mindset of luck, thinking that it might recover if you hold on, and definitely do not average down on losses.
4. Add trend positions: Add to positions when in profit. Adding positions is the core of making big money; after the price rises as expected and then retraces, add positions at the support level where it stops falling or breaks through previous highs—follow the big trend and counter the small trend.
5. Set stop-loss for trend positions: For new added trend positions, move the stop-loss to new key points. The base position is already safe, leaving only the risk of the added positions. If it fails, stop-loss on the added positions, wait for the next opportunity. If it continues to rise, firmly hold the positions, continue waiting for the opportunity to add positions, and keep moving the stop-loss. Until the last move is stopped out or a head signal appears to take profit.
6. Take profit: Never easily take profits at any time; this is key to making big money. Exiting can be done in batches or all at once, preferably all at once because it allows you to wait for the highest probability head signal.
If it is a right-side trade, floating profits will definitely retrace; you must accept this mentally. Do not think about selling at the highest point, or if you did not sell at the highest point, feeling like you've lost and wanting to wait for the highest point to sell. As long as you can master and consistently follow these principles in practice, you will find that making money is a natural outcome.