First of all, ordinary people are confused in the cryptocurrency circle. They need to do five things well.
The cryptocurrency market is constantly changing 24 hours a day. In fact, you don’t need to do a lot of operations. Just observe the market trends and operate 1-2 times. It is relaxing and you don’t have to stay up late. You can make steady profits. Isn’t that what you want? When you have time and the market trends, operate in line with the trend and then take a rest.
But recently, some coin friends say that they stay up late every day and still lose money in the end. It is not convenient to comment on this situation. I believe you all know it! To trade in the coin circle, you need to have three skills: familiar with the market situation, master the technical points, and use operational tactics.
Today, I will share with you five major tactics in trading
1. Risk control comes first
Risk control comes first. Effective risk control can limit the probability of capital loss to a certain range, thereby avoiding unbearable losses when risk events occur.
Risk comes first, profit comes later, and principal is the prerequisite for all operations. When trading, you must resolutely take risk control measures and strictly implement the stop-loss and take-profit plans.
2. Fund management is the most critical
Fund management helps improve fund utilization efficiency and save costs
It is necessary to make reasonable capital allocation according to the actual market situation. If the current trend is unclear, if you rashly invest most of the funds, you will face greater unknown risks.
It is also necessary to manage funds according to your own operating style. For example, investors who pursue stability and insurance can use 5% to 15% of funds to build positions, or enter the market in batches to reduce risks.
3. Reduce unnecessary transactions
The success of a transaction does not lie in how many times you do it, the key is to see how much profit you get each time.
Small market trends are not in line with your interests, so you should reduce such transactions and wait patiently for big market trends to come and trade appropriately to maximize your profits.
4. Technical experience support
Analysis of market trends cannot be separated from the support of technology.
Different market stages require different analysis methods. Appropriate technical analysis tools are essential to help you correctly judge the market trend.
Accumulating experience can help you become more skilled in operations, learn lessons, and avoid making the same mistakes again. Therefore, you should also focus on improving your own analysis level and accumulating experience.
5. Overcoming Bad Trading Mentality
In the process of trading, losses may occur due to psychological problems.
Greed turns profits into losses
Failure to admit loss leads to further loss
Fear causes you to miss the best entry opportunity.
