Three Survival Rules in the Crypto World: Secure your profits, cut your losses, and be smart to earn again!
In the crypto world, there are no guaranteed profits, only smart operations and risk management. As long as you master these survival rules, you can stabilize your footing in this turbulent market, earning easily and not feeling the pain of losses.
1. Lock in your profits; don’t give the market a chance to 'reverse'
In the crypto world, once you see the money you've made, you must protect it immediately!
For example, if you bought a certain coin and it rises by 10%, you might feel eager to wait for it to rise a bit more. Be careful, this kind of 'greed' can easily trap you!
Once it rises to a certain percentage (like 10% or 20%), you must immediately formulate a profit-taking strategy to avoid letting your gains slip away.
If the rise appears sustainable, continue to hold, but if there are signs of a pullback, cut your losses immediately to avoid being caught off guard by a sudden market drop.
2. Be decisive in cutting losses; don’t let losses turn into 'total loss'
Many investors, after incurring losses, often think, 'Just wait a bit longer; maybe I can break even.' But the longer you wait, the greater the losses.
Set a stop-loss point, for example, 15% (you can adjust this based on your risk tolerance), and once the loss reaches this point, cut your losses and exit quickly! Remember: the biggest fear in trading is 'not being able to cut losses.' A loss is a loss; if you missed out, consider it tuition.
Don’t cling to a single coin; both making profits and cutting losses require decisiveness.
3. Sold a coin and it drops further? No worries, buy it back at the original price
This rule can help offset the regret of 'selling too early.'
If you sell and then the coin price drops, at that moment, if you still have faith in it, don’t hesitate to buy it back at the original price!
This way, you can not only alleviate the regret of selling but also accumulate more coins at a new low.
Although you will incur some transaction fees in the process, it is much better than missing the market opportunity and losing the chance to double your investment.
In summary: To survive in the crypto world, don't just focus on the immediate ups and downs; learn to manage risks and protect profits.
To quote an old saying: Preserving profits, stopping losses in time, along with reasonable capital management, is the smartest investment strategy!