After three consecutive losses, he did these four things, and his account began to turn around
A good old friend of mine recently suffered three consecutive trading losses.
After reviewing, the problems were very typical:
Chasing after a slight rise, only to find that it was the peak when looking back
Profit and loss decisions were all based on feelings, with no standards
Following others blindly without personal judgment
This situation is not uncommon; the root cause is not that the market does not provide opportunities, but rather a lack of an executable trading system.
I provided him with four adjustment directions:
1. Prioritize finding resilient cryptocurrencies
Instead of blindly chasing hot trends, look for cryptocurrencies that can remain stable even when the market is down. If they can stand firm in a weak market, there is usually support behind them.
2. Execute clear technical rules
Refer to two moving averages:
If the 5-day moving average is broken, first reduce positions
If the 20-day moving average is breached, exit immediately
When direction is unclear, use rules to replace emotions.
3. Reduce position size and then increase
When uncertain, use a small position to test, and once the trend is confirmed, add more, avoiding taking heavy risks from the start.
4. Time-based stop loss
If there is no movement or if the price weakens after three days of buying, switch to another asset to improve capital efficiency.
A month later, his account gradually returned to positive, and more importantly, his trading rhythm stabilized, no longer engaging in frequent emotional trading.
The cryptocurrency market is highly volatile, but it is not chaotic. The key is not to make a profit on every trade, but to maintain stability, reduce large losses, and keep the capital curve moving upward.
If you don’t want to keep going in circles, then join me in positioning; the current market is a great opportunity for recovery and turning over your account.
