What should I adjust if I keep losing money in cryptocurrency trading?
Every investor entering the crypto space has likely experienced significant losses or liquidation.
Those who get rich are often those who have faced bankruptcy, summarized their experiences, and maintained a good mindset. If you haven't experienced liquidation or significant losses, how would you know what stop-loss means? If you haven't transitioned from profit to loss, how would you understand the change in mindset?
So, the first rule: Survival comes first! As Sun Tzu's Art of War says, a good warrior prepares for the inevitable defeat. Don't let yourself incur huge losses; once danger arises, put aside other principles. No matter how much you've earned in the past, losing 100% wipes everything out. Once your funds are gone, you're out of the game. To win, you must first protect your capital!
The second rule: Proper capital management! A small step towards success can lead to a huge step back in failure. Building capital takes time; human nature dictates that the pain of losing 1000 yuan is far greater than the joy of earning 1000 yuan. Significant financial loss affects your mindset. Therefore, you need a clear operational system: know how much to earn, how much to lose before exiting, how much profit to take, how to increase your position, and how to leave yourself an escape route.
The third rule: Trends are your friends! In trading, the worst is lacking the patience to wait for trends and over-trading. Bull markets and bear markets do not happen overnight. Have patience, wait for the trend to emerge, seize the leading opportunity, hold on, and avoid random trades; profits will come. When the trend appears, follow it; if it hasn't, wait patiently and don’t make unnecessary moves. Over-trading can lead to losses in transaction fees, and you won't make big money that way!
The fourth rule: Psychological resilience is essential! Trading cryptocurrencies goes against human nature; only a few people make money. You need to have a mindset that is unafraid of liquidation and not overly concerned about small fluctuations. To make big money, your mindset must be expansive! You also need to be in good health, as health is the foundation of revolution!
The fifth rule: Find a trading method that suits you! There is a method without skills, and skills can still be sought after; there are skills without a method, which leads to stagnation. The trading method relies on knowledge, insight, and courage. Understand the basic logic of trading, follow the rules, and overcome human weaknesses: hope, fear, and greed. When the market moves, let the profits run; if funds are lost, stop-loss in time. This is the fundamental way to make big money!
Recently, I plan to invest in a potential coin that is about to explode; doubling my investment seems quite easy. Meanwhile, I'm also looking for some potential coins to hold until the end of the year, expecting a space of more than 10 times is not a problem. If you want to keep up, like and comment, and I'll share for free.