The many people losing money who remain in the cryptocurrency space do so to recover their losses, but a harsh reality is that most people cannot recover and cannot make money, especially those who think they can recover through contracts; they are just daydreaming. The few who make money through contracts in the market are extremely rare. If you think you are that person, honestly, you are not cut out for recovering losses through contracts. No matter how much you lose, it won't change. Even if you lose everything, you cannot recover through contracts. Thus, I advise those who want to recover losses through contracts to quit trading contracts; in other words, quit gambling.
What should spot traders do if they are losing money?
First, if the loss is not too much and the principal is still relatively large, meaning that the principal and the loss are balanced, then recovering the loss is relatively simple and easy, or it is possible to recover with less than five times the investment, but the most important point is the entry point.
And the selling point; if you are stuck at a high position, it will be difficult. Most people can make money at the start of a bull market or during the main rising wave of a bull market, but losses occur due to not knowing when to sell. After selling, during the main distribution phase, repeatedly entering at high positions leads to being harvested. Therefore, what position to sell is very important for retail investors, but selling is not the most important thing.
The most important thing is that after selling, you can hold cash and wait, which most people cannot do; it is something that 95% of retail investors cannot achieve. This is the fundamental reason why most people lose money. If you can sell at a relatively high point, and after selling, you are not influenced by market analysts or various positive news at high positions, and you stick to holding cash, that is truly locking in profits, and that is how you can actually make money.
To summarize, those who lose money.
1. Recovering losses within five times is good.
2. Know how to sell.
3. Know how to hold cash.
Of course, it's the same for spot players; less than 5% of retail investors make money because the trading market is a struggle against human nature—greed, fear, arrogance—few can overcome these.
So, who are the people that make money through trading?
Those who truly make money often learn just one trading strategy and can analyze the fundamentals; that is, when the market is in a bottoming phase and is moving sideways, they buy in, hold on, and sell when prices have risen significantly, without being overly concerned with news. For the cryptocurrencies they buy, they may not understand them and buy blindly, but when a bull market comes, all cryptocurrencies will rise.
In fact, especially many newcomers to the spot market find it easier to make money.
In the cryptocurrency space, let's first talk about two simple methods to make money:
Type One:
Making money through trading is actually this simple; just follow these three steps! Master them, and easily multiply your account by ten times!
Step one: Look at the trend first.
Step two: Find key levels.
Step three: Find entry signals.
Entering the market, making profits, closing positions, and leaving.
Isn't it simple?
Let me explain in more detail below.
Step one: Look at the trend first.
The state of a market.
There are basically three outcomes in a major market: rising, sideways, or falling.
What is a major market? Look at cycles above 4 hours.
For example, 4 hours, daily, weekly (my personal habit is to look at the 4-hour chart).
Go long when the market rises, go short when it falls, and do not trade during sideways movements.
Step two: Find key levels.
Whether the market is rising or falling, it will jump level by level, either from bottom to top or from top to bottom, like a bouncing ball.
What we need to do is enter the market at the jumping point and exit at the next landing point; finding precise steps becomes key.
Which we call key levels (major support and resistance levels).
(How to accurately find major support and resistance levels can be seen in my previous articles.)
Step three: Find signals.
Generally, if you see market movement in a larger cycle, you should look for trading signals in a smaller cycle to enter.
Everyone is good at different trading strategies; mastering one or two is enough.
More importantly, quickly formulating a trading strategy.
A complete trading strategy includes.
(1) Target—what to trade;
(2) Position—how much is held;
(3) Direction—long or short;
(4) Entry Point—at what price to trade;
(5) Stop-loss—when to exit a losing trade;
(6) Take profit—when to exit a profitable trade;
(7) Strategies—how to deal with unexpected situations;
(8) Follow-up—operations after the trade ends.
The famous TLS technical analysis method: Trend + Key Position + Signal = Successful Trading.
Before each trade, follow the process to formulate a strategy; I believe you won't lose too badly.
Forming good habits over time, you will notice the shortcomings in your trading process; if you work hard to change them, you will succeed!
Lastly, let me say something heart-wrenching.
There are no guaranteed secrets to making money in the cryptocurrency market; it is only a game of probability. The essence of the pullback confirmation method is to use rules to combat human nature—remain calm when others panic, and exercise restraint when others are overly enthusiastic.
Strong recovery, doubling your assets! Keep up with the trends, plan ahead, and effortlessly reap great rewards.
Continue to follow: CROSS AVAAI.