Entering the cryptocurrency market with 10,000, I have now survived in the crypto world for ten years. I have reached the peak and also fallen to the bottom, both experiences have taught me a lot. I now support my family by trading cryptocurrencies, and I have summarized my hard-earned experience:
1. Cryptocurrency: Determine which cryptocurrency you want to trade, for example, BTC, ETH, etc.
2. Position: Decide how much you want to hold. This depends on your capital management strategy and risk tolerance.
3. Direction: Determine whether to go long (buy) or short (sell). This needs to be judged based on market trends and technical analysis.
4. Entry Point: Determine at what price point to enter the trade. This can be decided based on technical indicators, support, and resistance levels.
5. Stop Loss: Set a point to exit losing trades to control risk. Usually, a stop-loss level is set below the entry point.
6. Take Profit: Set a point to exit profitable trades to secure profits. Usually, a take-profit level is set at the target price.
7. Countermeasures: Develop strategies to respond to unexpected situations. For example, measures to take when significant news or volatility occurs in the crypto market.
8. Follow-up: Operations after the trade ends. For example, recording the trading log, summarizing lessons learned, adjusting strategies, etc.
After formulating the strategy, the next thing to do is execute it, then wait patiently, and strictly adhere to trading discipline.
Quietly wait for the market to move towards your expected target. Over time, there are only two possible outcomes.