Cryptocurrency Survival Guide: The 'Dumb Method' for Steady Profits and Short-Term Trading Secrets (Part 2)
Essential Skills for Beginners: Position Management and Trading Psychology
1. Position Management: This is key to protecting your funds. After making a profit, set a stop-loss order near the opening price to add a 'protective shield' for your capital. Especially when investing in small altcoins, adjust your take-profit position promptly as the price rises, and always set a stop-loss. At the same time, avoid being blindly optimistic due to small gains and know when to take profits. If you unfortunately incur losses, do not impulsively double down; instead, go with the trend and avoid blindly trying to catch the bottom. Establish a fixed trading system, patiently wait for the right moment to pull back, and reasonably control your position and leverage.
2. Trading Psychology: This is the core factor that determines whether one can maintain a foothold in the cryptocurrency market. When faced with floating profits turning into floating losses, remain calm and do not let emotions dictate your decisions. Trading cryptocurrencies is essentially a test of mindset; learn to overcome psychological barriers and not let temporary gains or losses affect your judgment.
In this field filled with uncertainties and challenges, investors must continue to learn, summarize experiences and lessons daily, and continuously improve their trading skills. Position management and trading psychology are the two essential tools for success in cryptocurrency trading. Beginners who wish to profit in the cryptocurrency market must diligently practice these two skills.