One: Learn to take profits and cut losses.
The market changes rapidly, so you must learn to take profits and cut losses. This isn't very difficult; taking profits controls your greed. A cryptocurrency won't rise indefinitely, nor will it fall constantly; there are cycles. Therefore, taking profits becomes particularly important. Don't always fret about closing positions too early and missing out on later profits! You must remember that you can never exhaust the money in the crypto market, but you can lose all the money in your account.
Cutting losses means abandoning sunk costs, which is also very difficult. Don't always think that if you hold on a little longer, the market will reverse the next second. Never think like that. If you're wrong, you're wrong—acknowledge it. Taking hits is necessary; cutting losses may hurt, but it can save your life.
Two: Do not trade frequently.
A big taboo: don't always think about profiting from both sides? Wake up; not many people can do that. Be content with making money on one side. Another point is transaction fees; low leverage is manageable, but high leverage can be painful. When you open a position, you instantly lose 1-2 points of profit. Ensure that this trade can make money; otherwise, it's meaningless, and you end up giving all your earnings to the broker as fees!
Three: Learn to stay out of the market.
When you don't understand the market, don't blindly open positions. You might say that missing out on the market is uncomfortable. So let me ask you, is missing out worse than losing money? Not understanding the market and blindly opening trades is no different from gambling!
Trading is about having a probability advantage. No one can accurately predict whether the market will rise or fall. The market changes too quickly; you can only say that it's more likely to rise or fall.
Four: Proceed step by step.
Don't always think you can become a big shot in one go; being impatient won't help!
The crypto market won't make you rich overnight. For example, if you start with 100 and leverage it 10 times, you have a position of 1000. If it rises by one point, you earn 10; if it rises by two points, you get 20. That's just enough for a breakfast. Nowadays, working in a factory earns you about 15 per hour. If you execute three or four trades a day with a win rate of 60-70%, it’s not worse than working in a factory.
Five: Never heavily invest in S0.
Never, ever heavily invest in S0, or you'll lose everything in case of an accident. For example, the market may rise as expected, but then a heavy news item comes out and suddenly it drops sharply. If you haven't set a stop-loss, you're done for! So don't rush; definitely go in with a light position—focus on being stable. The cryptocurrency market doesn't lack trends or opportunities; they will always be there, at least for the next 10 to 20 years. So don't be deceived by the illusions in front of you!
Six: You must understand and act in unison.
This point is indeed quite difficult, and even I can't always fully achieve it sometimes. Human weaknesses are hard to grasp!
These most basic issues I didn't understand at first. I opened positions blindly without a plan! After being in the industry for a while, you'll realize that the crypto market can truly change your fate! The prerequisite is that you must have a mindset that surpasses others, the courage to take risks, decisiveness in setting stop-losses, and the determination to survive. Otherwise, you'll never become one of the 1% destined to succeed!
