Every investor who comes to the cryptocurrency circle will experience major losses, margin calls, and profits turning into losses in his trading career. There is only one kind of people who get rich among the army of cryptocurrency speculators, and that is those who have experienced bankruptcy and then summed up their experience with a big mentality.

If you have never experienced a margin call or a major loss, you will never know what stop loss is; if you have never experienced the transition from profit to loss, you will never be able to understand the change of mentality from a thought to heaven or a thought to hell.

1. Survival is the first principle

Sun Tzu said: Those who were good at fighting in the past first made themselves invincible, waiting for the enemy to be defeated. It is very simple to avoid big losses. Survival is the first principle. When there is a danger of hindering this principle, abandon all other principles. Because no matter how many 100% excellent results you have had in the past, if you lose one 100% now, you will have nothing.

Once your funds are wiped out, you are doomed to be eliminated. If you want to play this game well and achieve ultimate victory in it, all systems and rules must be based on the principle of preserving the principal.

2. Correct fund management:

Every success will only make you take a small step forward, but a failure will make you take a big step back. This big step prevents the accumulation of funds. The accumulation of funds requires opportunities and time. Human nature is always like this: the pain of losing 1,000 yuan is much greater than the happiness of getting 1,000 yuan. The loss of a large sum of money can easily affect an investor's mentality. A 50% loss of 1 million yuan becomes 500,000 yuan. To increase the value of 500,000 yuan to 1 million yuan, a profit of 100% is required. It takes an hour to walk from the first floor of the Empire State Building to the top floor. But if you jump from the top of the building, it only takes 30 seconds to get back to the bottom.

You cannot control the direction of the market, so there is no need to waste energy and emotions on situations that you cannot control. Don't worry about how the market will change, but worry about what countermeasures you will take to respond to market changes. It is not important to judge right or wrong, but what is important is how much profit you get when you are right, and how much loss you can bear when you are wrong.

Every time in the crowd in the market, I see many people who can bargain with the merchants for half a day over the price of a piece of clothing, or go shopping for half a day, but investors will not think about buying for more than a few minutes. This is a common feature of many people, and it is definitely not the behavior of someone who wants to make a big splash in the investment market. If you want to make big money in the market, investors must be cautious and guard their accounts very carefully.

There is a clear operating system when entering the market:

(1) How much money do you plan to make in this market trend?

(2) What is the maximum loss I can accept? If the market retreats, I must exit the market immediately at that loss.

(3) I must pocket a certain percentage of the profit from each operation;

(4) Gradually increase positions to avoid full-position trading. As profits increase, continuously increase the profit stop loss level to never allow existing profits to turn into losses.

(5) Always give yourself one more chance to trade and strictly follow your own trading system.

3. Trends are your best friend

The biggest enemy of trading is waiting patiently for a clear market trend and over-trading. The bull market does not end in one day, and the same is true for the bear market. I have seen trading in the cryptocurrency circle for three years without opening, but it is profitable for three years after opening. As long as you have patience, wait for the market trend to come clearly, find the leading stocks, and hold them until the end of the entire bull market, and do not over-trade, you can get unexpected profits. When the trend comes, respond to it and follow it. When there is no trend, observe it and stay calm.

Excessive trading is also the enemy of investment. Those traders who run the spread can only earn a little sweet profit, but not a big money. Let's calculate the handling fee of excessive trading: the current virtual currency exchanges are calculated based on 0.2% for buying and selling, and completing a transaction is 0.4%. If a trader trades once a day, and a year is calculated as 365 days, then the trader loses 4/1000*365=140% due to handling fees. You didn't see that it is 1.4 times, think about Buffett working hard for 30%, and your annual transaction fee is 140%; there is another trader who often ignores that the more frequently a person enters and exits the market, the more likely he is to change his mind frequently. As the saying goes, the more you do, the more mistakes you make, the less you do, the fewer mistakes you make, and if you do nothing, you will miss the big market due to excessive trading;

Make plans before taking action. Determine the arrival of a trend based on the obvious price breakthrough points, popularity, trading conditions, and capital inflows provided by the market. Keep a broad view of market trends and don't be confused by short-term fluctuations.

4. Psychological quality is the core

Cryptocurrency trading is against human nature. This is a game that determines that only a few people can make a profit, while the vast majority of people are just playing with money. In trading, you need to have a strong psychological quality, and you must have a pattern and mentality of a warehouse explosion. If you enter the market with 10,000 yuan, and your mind is thumping for the rise and fall of 100 yuan, then I advise you to leave the market as soon as possible, which also guarantees your personal safety. If you have a big mentality of wanting to make 100 million, then the rise and fall within 1 million will not affect your mentality, because what I ultimately want is 100 million, and 1 million is not within my consideration range, so that there is a chance to make a big profit.

Trading is not only a game with big institutions, dealers, and retail investors, but also a game with yourself. As the ancients said: Fighting with the sky is fun, fighting with the earth is fun, and the highest level of struggle is to fight with yourself. Cryptocurrency speculation is a process of psychological struggle all the time. You have been asking yourself, should I sell or keep it at this price? What should I do? This is always a process of psychological game, which requires strong psychological quality. In addition, you must have good psychological quality and good physical condition. Good physical condition is the key. Why do people live? Living is nothing more than having a healthy body and constantly tempering your soul in the world.

5. The trading method that suits you

Tao represents the logic of things, and Shu represents the methods. As the saying goes: If you have Tao but no Shu, you can still find Shu; if you have Shu but no Tao, Shu is useless. The birth of a trading Tao represents the composition of a person's knowledge, insight, and courage. By constantly experiencing ups and downs in the market, you can finally figure out the basic logic of trading, which is in line with the law.

The biggest enemies of investors are: hope, fear and greed. Having your own trading method also requires overcoming the weaknesses of human nature: hope, fear and greed. When the market is about to fall, investors should be full of fear, but they feel that there is nothing left to hope for; and when the market is rising and they are afraid of a correction, they should have the greatest hope in the world, but they begin to be full of fear. This is the reason why traders cannot make big money.

Having your own trading method and forming a trading system can help you overcome the weaknesses of human nature, let the profits run when the market comes, and stop the loss when the funds are losing money. This is the fundamental way for a person to gain great wealth.

Finally: Only this kind of people can make money in the cryptocurrency market. It does not depend on the technology and methods used, but on your self-discipline. Cryptocurrency trading is sometimes not a battle of strategy but a battle of time and patience. #以太坊ETF批准预期