How to hold on to profitable orders?

I think many people always sell at high prices during trading and lose money.

Why is this so?

In fact, the answer is not complicated. The main reasons are technical and emotional.

I usually buy meme coins. Sometimes they double in value. I think they can increase 10 times, so I hold on to them and eventually they return to zero. Sometimes they double in value. When the profit retreats a little, I close my position and sell them, which results in a 50-fold or even 100-fold loss.

After reviewing the market, I found the following reasons:

(1) I am not familiar with the coins I bought. I did not check the fundamentals of secondary coins. I did not check the positions of large investors and the insider trading of meme coins.

(2) When I make a profit, I become greedy and hold on to them to make more money. When they retreat, I panic and sell them hastily.

(3) I lack sufficient patience.

After a period of research, I summarized the following methods to solve this problem:

(1) Set up the stop-profit and stop-loss when opening an order, and take the stop-profit in batches.

For example, if the price rises by 20%, reduce the position by 2 layers, and if the price rises by 40%, reduce the position by 3 layers.

Never sell all the currencies you are optimistic about, and keep some profits to fight for higher returns.

In this way, we lock in part of the profits when the price falls, and we will not sell out when the price rises.

(2) Conduct in-depth research, look at the fundamentals at the secondary level, and look at the popularity and positions at the local dog level to confirm the general trend.

(3) Manage your emotions.

I usually set up the stop-profit and stop-loss after buying, and then I don’t watch the market. I just play and eat, and let the market play out.

The essence of trading is not just buying and selling, but also understanding the market, controlling risks, and managing emotions.