Don’t be easily cheated out of low-priced chips, be firm in your beliefs and prevent the banker from knocking you across the board and smashing the market.
Buying highs and selling lows, and entering and exiting the market with full positions are always taboos. The general trend is favorable, and building positions in batches when the market falls has lower risks, lower costs, and greater profits than buying highs.
Reasonably allocate profits and maximize the release of funds instead of constantly adding positions and deposits.
When the price rises sharply, sell the money; when the price falls sharply, keep the money. At all times, you must have a positive attitude, do not speculate, do not be impetuous, do not be greedy, do not be afraid, and do not fight an unprepared battle.
The ambush or private placement of low-priced coins in the front is to rely on experience and bet with the dealer on the future of the coin. The secondary market game in the back is a process of relying on technology and information to follow the dealer. Don't put the cart before the horse, which will end up in a mess.
When building positions and shipping goods, they must be divided into layers and segments, and prices should be gradually separated to effectively control the ratio of risk and profit.
You need to be familiar with the linkage effect, and watch the market when trading coins. At the same time, you need to pay attention to the movements of other coins. Each coin does not exist in isolation in the market. They seem to have no connection, but in fact they are intricately connected. To achieve the linkage effect, you need to understand the coins. Now there are many tools that can be used to view coin information and consultation.
The allocation of positions should be reasonable. The allocation of hot coins and value coins should be reasonable. Pay attention to the ratio of stress resistance and profit intake. Being too conservative will miss opportunities, and being too aggressive may face high risks! The biggest feature of value coins is stability. The biggest feature of hot coins is extreme volatility. They may rise to the sky or fall to zero in one battle.
Having coins on the market, money in the account, and cash in your pocket is the safest and most secure standard configuration. You cannot go all in, or you will die. The grasp of risk control and the reasonable allocation of funds are the key to determining your mentality and success or failure. Investing spare money is the foundation.
Master the basic operations, learn to draw inferences from one example, master the basic ideas of trading, observation is the prerequisite, remember each high and low point as reference data, learn to record, learn to summarize materials by yourself, develop a reading habit, and cultivate the ability to screen and filter information.
1. Investment cannot rely entirely on luck
If you have more profitable orders than losing orders and the total value of your account is growing, then congratulations, your investment is successful and you have found the tricks and methods of investing in the cryptocurrency world. However, if you make profits in 9 out of 10 transactions, but one losing order offsets all your previous profits and the total value of your account is in a negative growth state, then you have to be careful, you are not so lucky every time, don’t increase your position easily, if the direction is wrong, lose it in time and start again with the next transaction.
2. Believe in yourself
Many times, the orders you originally made were correct and could help you make a profit, but because of your lack of confidence or interference from other people, you changed the original correct orders into wrong orders. You are very unwilling to accept such a failure, and you will think why didn’t I persist a little longer? As a good investor, you must have firm beliefs and will, and you must know that the truth is often in the hands of a few people.
3. Trading skills
There are trading skills required for cryptocurrency investment, and the market trends are regular. When we place orders, we should make judgments based on the technical aspects and follow the trend instead of going against it.
4. Do a good job of risk control
Investing in the cryptocurrency circle is a high-risk and high-return investment. We should do a good job of risk control when making each order, place orders with a light position, and cover positions in line with the trend. We must not blindly place heavy positions. At the same time, we must set stop loss and take profit for each transaction, and don't be greedy.
5. Be cautious when entering the market
Many investors often can't help wanting to make a trade, but they rush into the market without a suitable position, which often results in the failure of the transaction or awkward position, and even if they make a profit, they don't get much. Good market conditions are often waited out. Look for a wave of market conditions and enter the market at the right time. Don't be impatient and make orders at random.
6. Be decisive when leaving the market
One of the most common mistakes that investors make is to hesitate to leave the market. There are two situations. One is to be greedy after making money and think that there is still a lot of room for profit. If the market reverses, it is easy for profitable orders to turn into loss orders, so it is also an investment skill to stop when you are ahead and not be greedy. The other is to be reluctant to stop loss after losing money, thinking that there is still room for recovery. This is more serious. Desperately resisting orders may result in a liquidation, and then there will be little money left, and it will be too difficult to get back the money. So no matter which situation, you must leave the market decisively and don't hesitate.
7. Keep a calm mind
Investing is a long-term process, which cannot be determined by one or two orders. So don’t be too proud when you make a profit today, and don’t be discouraged when you fail. The market is changing rapidly, and no one can guarantee that there will be no misjudgment. If you get discouraged, you will definitely not be able to do well in the subsequent orders. When facing failure, you need to keep a calm mind, sum up the lessons, adjust your state and prepare for the next transaction.
8. Pay attention to the news
There are a lot of news in the market, and sometimes a major news can change the original technical form and trend, so you must pay more attention to the news when making orders. Combining the news and technical aspects will make you more comfortable.
9. Sufficient funds
If you use borrowed money to invest, then Brother Xia advises you not to do it, because you are no different from a gambler and will only lose everything in the end. Investment is done with spare funds, so that your mentality is more stable. At the same time, sufficient funds can also be used to cover positions or lock orders, making your operations more flexible and more able to control risks.