Source: HualihuawaiDAO
There are many ways to make money. Apart from luck, most of them are the realization of cognition, so it doesn’t matter whether the method is good or bad.
— — — — Lao Jiucai (partner in the group)
Recently, through the messages from my backstage partners, I can feel that many people have just entered this field and are experiencing a bull market for the first time.
Before giving specific suggestions, let’s think about a few questions:
What is the reason why you entered this circle?
What is your current work or life situation like?
What are your future directions and goals?
What are your expectations for gains and losses?
Whether in the capital market or in work and life, we are always in a constantly changing environment. We cannot change the cyclicality of the environment, but we can find a relatively balanced strategy in this environment.
1. If this is your first bull market, trade as a side job
In a bull market, it is easy for people to have the illusion that "making money is too easy". If you currently have a stable job and income, trading in the crypto market can be a way for you to broaden your skills. Don't question or even give up your current job status just because you have made a quick buck. Don't stay where you are and look for it, but look for it while moving forward.
The bull market is short-lived, and long waiting and patient layout are the norm for trading. While doing your main business well, you should improve your cognition of your side business, calm down and feel a complete market cycle, and trade with small amounts of money. From questioning the market, to understanding the market, and then to participating in the market, it is not something that can be understood overnight.
When your side job is strong enough to support your life, you can consider making it your main job, or even further pursue the things that you truly desire in your heart.
2. There are ways to play with small-scale funds and large-scale funds.
If you don't trade, you can't understand the market. If you put all your eggs in one basket, you are easily manipulated by the market.
Things that are easily obtained in life are often easily lost again. Only by understanding the rules can we use them. Anyone who enters the capital market should first understand and then realize.
Therefore, the second suggestion for those who are trading for the first time is: for the first round of bull market trading, you should take out the funds that you can afford to lose without affecting your normal life in the future. Because, if you make money, it is icing on the cake, if you lose money, it is cheap tuition, and if you are trapped, it is a low-cost trading experience. And your life will not become worse because of this, your mentality will be stable, and your subsequent trading behavior will not be distorted.
3. Take Profit and Stop Loss Strategies
A friend in the group once said: You can never make enough money, but you can lose it all. Don't pursue a 100% winning rate, there is no one with a 100% winning rate.
The constantly changing numbers are the floating profits and losses carefully presented by capital for you. Set a selling strategy for yourself and adjust it regularly according to market trends. The success of trading ultimately comes down to people's hearts, and so does failure. Trading is a process of constantly experiencing inner struggles, constantly tasting sweetness and bitterness, and it is also a grand inner practice. The moon waxes and wanes, and the water overflows when it is full. Stop profit to be stable, and put money in pocket to be safe.
4. Pay attention to market sentiment and don’t be overly optimistic or pessimistic
Pay attention to market sentiment and don't be affected by excessive optimism or pessimism.
A typical feature of a bull market is emotion. Market sentiment can become very optimistic as prices rise, but it can also become extremely pessimistic due to short-term pullbacks.
We must learn to control our emotions through rational analysis, not be misled by excessive optimism in the market, and not panic because of short-term price fluctuations.
Focus on fundamental analysis and long-term trends, not just short-term price changes.
5. Record and review your investments
Keep a record of your buying and selling decisions and the reasons behind them. The fast pace of a bull market can easily make people lose themselves. Regularly reviewing your investment strategies and decisions can help you avoid being emotional and can help you learn from past decisions.
6. Don’t trust or be deceived
You can be tempted, but don't be deceived.
Be wary of promises that are “too good to be true,” avoid “phishing sites” and malicious links, and check your account and transaction records regularly to learn about common types of scams.
For those who are new to the crypto market, you are here to make money, not to give money away.