This article is purely hand-typed and will be updated irregularly.
First, let's talk about misconceptions:
1. Heavy position
The contract traders in the crypto world love to read stories about getting rich quickly from heavy positions. In reality, betting everything is a form of wisdom. Even if one is on the right trend, very few can make it to the end. Most end up worn out or forced to exit due to liquidation. This dual torture of money and psychology means that 90% of people cannot achieve a successful exit. There were successful individuals in the past like the Bitcoin King, and now there are gamblers like Liang Zai. Most people can't even achieve the latter. When 3,000 turns into 300,000, it's not just about closing positions; they may also go long and end up liquidated, similar to the Luna incident that left many casualties.
2. Close stop-loss
There is no distinction between close stop-losses; there are only correct and incorrect stop-loss levels. Many people think that if their stop-loss is close, the risk-reward ratio will be higher. More often, after being stopped out, the market continues in the direction of the opening position, and they then lament with friends about how accurate their predictions were, only to be stopped out, which indicates one thing - the stop-loss level was incorrect.
3. Both long and short killed
Traders who can make money in the long term are neither die-hard bulls nor die-hard bears, but those who stand on the side of the trend. Once a trend is established, it will continue in the same direction for most of the time. The huge profits come from being on the trend train; therefore, both long and short kills will cause short-term profits to be wiped out by long-term trend losses.
Making a living from trading is not easy. Apart from high-end technology, financial trading is one of the most difficult things in the world. Before being able to make long-term profits, one should calm down and learn. For today, the analysis stops here. If you have questions, you can leave a comment, and Old Wang will reply one by one.