If you are in a losing position in contracts and want to turn losses into profits, you need to read this article carefully. Following these points can help you be profitable.
1: Learn to take profits and cut losses.
The market changes rapidly; you must learn to take profits and cut losses. This isn't too difficult. Taking profits controls your greed. A cryptocurrency won't rise endlessly, nor will it fall continuously; everything has its cycles. Therefore, taking profits becomes especially important. Don't always worry about closing positions too early and missing out on future profits! You must remember that the money in the cryptocurrency market is never-ending, but the money in your account can be lost completely.
Cutting losses means giving up sunk costs, which is very difficult. Don't always think that the market will reverse in the next second. Never think like that. If you're wrong, you're wrong; you must acknowledge it. Stand tall when taking hits. Although losing an arm to survive is painful, it can truly save your life.
2: Don't trade too frequently.
A major taboo is not to always think about profiting from both sides. Wake up, not many people can achieve that. Be content with profiting from one side. Another point is the transaction fees; it's okay with low leverage, but with high leverage, it gets painful. You lose 1-2 points of profit as soon as you open a position. You must ensure that this trade can make money; otherwise, it becomes meaningless, as all your profits go to paying fees!
3: Learn to stay out of the market.
When you don't understand the market, don't blindly open positions. At this moment, you might say that missing out on the market is painful. But let me ask you, is it more painful to miss out or to incur losses? Not understanding the market and blindly opening positions is no different from gambling!
Trading relies on a probability advantage. No one can accurately predict whether the market will rise or fall. The market changes too quickly; you can only say there is a high probability of rising or falling.
4: Progress step by step.
Don't always think that you can become a big shot in one go; haste doesn't help you eat hot tofu!
The cryptocurrency market doesn't make you rich overnight. For example, if you start with 100, and leverage it 10 times, your position is 1000. A one-point rise earns you 10 dollars, and a two-point rise earns you 20 dollars. That's enough for breakfast! Nowadays, working for an hour gives you 15 dollars. If you open three to four trades a day and achieve a win rate of 60-70%, it’s more comfortable than working in a factory.
5: Never go all-in with heavy positions.
Never, ever go all-in with heavy positions. A minor accident can wipe you out. 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, then you're finished! So don’t rush; always trade with light positions. Stay steady; the cryptocurrency market doesn't lack opportunities, and they will always be there for at least the next 10-20 years. So don’t be fooled by the illusions in front of you!
6: Always ensure that your actions align with your knowledge.
This point is indeed quite difficult; even I sometimes can't fully achieve it. Human weaknesses are hard to manage!
I didn't understand these basic issues at first; I opened trades blindly and randomly without a plan! After being in the industry for a long time, you will realize that the cryptocurrency market can truly change your fate! The premise is that you must have a mindset that surpasses others, the courage to take action, the decisiveness to cut losses in time, and the determination to survive at all costs! Otherwise, you will never become one of that 1% of destined individuals!
