Today I will share a summary of my years of trading experience for free, hoping it can help everyone. Of course, I will mainly provide an overview here. Depending on the reactions of my followers, if everyone feels it is necessary to elaborate, I will later publish three detailed articles to discuss these three points separately. In summary, there are three core points:
First, position management. This is the most important thing! If you haven't realized the importance of position management, it means you haven't left the beginner stage. You are still in a pure novice phase! I have discussed position management in my previous articles and how I manage it. If you're interested, you can take another look. Of course, I also just touched on it briefly and provided what I believe is the simplest, most effective, and easy-to-learn method! You could say that position management determines how long you can survive in the crypto space in the future!
Here, I will briefly say that before you open a contract, you must have already considered where to place your stop-loss, right? (Don't tell me you haven't even thought about where to place your stop-loss before opening a contract.) The size of the position you open depends on where you place your stop-loss. Think about it: if this trade hits the stop-loss, can you psychologically bear the loss? If you can't bear it, it means your position is too large, and you need to reduce it! If you can bear it, it means your position is just right! This is very easy to calculate; you can calculate it in an instant. Don't use percentages for positions; that really complicates things and wastes time. Often, opening a trade at a good price is a matter of a moment!
Second, develop good trading habits, which include several points:
1. Always use a stop-loss when opening a trade; this is an ironclad discipline for contract trading. If you cannot adhere to this, I advise you to just give your money to a doghouse dealer to save yourself the torment! Never hold onto a losing trade with a sense of luck; if you manage to recover nine times out of ten, you may feel complacent, thinking you can always recover. But it only takes once to wipe you out completely! This type of person actually makes up the majority!
2. Maintain a good mindset. When trading, never get overly excited. Don't let a loss make you want to immediately recover it by frequently trading; this is a very dangerous thing. I've seen too many people get too excited after a loss, trying to recover their capital immediately, resulting in a total loss overnight. This goes back to what I mentioned earlier: when you open a trade, you should have already thought about where to place your stop-loss. This means you know how much you will lose if the stop-loss is hit, which is something you should have considered beforehand. Therefore, if your stop-loss is hit, relax your mindset and maintain a good attitude; later, you can look for good opportunities to trade again.
3. Don't have preconceived notions. If you know a bit about technical analysis, that's best. If you don't, then you should avoid having any preconceived notions even more. I've encountered too many such people who think: 'I believe it's going to drop now; the market is intentionally being pumped to force shorts. I believe it's going to rise; I won't believe it won't rise, so I will hold on to my position.' They think that with all the positive news, how can it not rise? They are just waiting for the market to intentionally drop and liquidate long positions. This is a typical case of preconceived notions; to put it bluntly, it's being stubborn. They refuse to admit defeat when losing. The market changes rapidly, and we must adapt our thinking accordingly! If you're wrong, admit it; stand tall when taking a hit!
Third, you must pay attention to the risk-reward ratio when trading contracts! Many people lack the concept of risk-reward ratio. If the first two points are the key factors that ensure you can survive longer in the crypto space, then the risk-reward ratio determines whether you can make big money in the crypto space. Many people trade contracts blindly, without forming a systematic approach, relying solely on their feelings, and leaving no backup plans, swinging wildly from one idea to another.
Using myself as an example, my decision to trade depends on two things:
First, through technical analysis, I can somewhat predict whether the market is likely to rise or fall; if I'm confident, I trade.
Second, even if I'm not too confident in technical analysis, like being bullish but not very sure, if the current price level is good and I predict that there isn't much room for a drop but there's a lot of room above with a high risk-reward ratio, then I can still trade.
If either of these two conditions is satisfied, I'll trade. Of course, if both conditions are met, that's even better. For example, I generally require a starting risk-reward ratio of 1:3 for my trades. A while ago, I made a long position that, from a technical analysis perspective, I wasn't particularly confident about, but it was still okay, with a 70% confidence level! However, I saw that the risk-reward ratio was very high, so I went for it. In the end, when I closed the trade, the risk-reward ratio reached 1:7. In other words, I made seven times my investment.
So later, when I use the same position to trade other contracts, I could be wrong seven times in a row, and I still wouldn't lose my capital; my margin of error has greatly increased. Therefore, my mindset will be better when I trade later, and with a better mindset, my trading accuracy will improve. If in those seven trades I just need one to be correct, then I've made a profit; if two are correct, I make even more. Moreover, my accuracy in market analysis is still very high.
Therefore, the risk-reward ratio must be taken seriously, as it fundamentally determines whether you can make big money in the crypto space. Many people do the opposite; they take a small profit and run, but stubbornly hold on to their losses. Even if you're right in your direction, you won't make money. You say you're not losing; who is losing then?
The starry sky stretches for miles, as always. You will definitely gain something; helping others is like helping yourself. There are no bad markets, only poor operations. I hope that regardless of how the market changes, we can continue to walk together, and ten years from now, we can still look at the crypto space with a smile.
Once you've seen the ocean, it's hard to see water as anything else; if you exclude the misty mountains, there are no clouds. The above are some insights I've gained from trading cryptocurrencies over the past decade—these are heartfelt words. I've taken many detours and slowly comprehended the path. Today, I share this summary with everyone, hoping it can help everyone improve their understanding and approach to crypto trading.
The above opinions are solely personal opinions shared for learning and communication, not to be taken as any investment advice.#以太坊交易量反超比特币 $BTC
