You might not know how to trade contracts at all!
If you are currently losing money in contracts, then you need to read this article carefully. Please be sure to follow these points to ensure you can achieve profitability. A sharing of insights from a 6-year veteran in the market, the following points are very important.
1. Learn to take profits and cut losses
This point has been said many times. The market changes rapidly, and you must learn this. It’s not difficult to say; taking profits controls your greed. A cryptocurrency will not rise indefinitely, nor will it fall continuously; both have cycles. This is why taking profits becomes especially important. Don’t say that you exited too early and missed out on later profits. You must remember that you can’t make all the money in the crypto world, but you can lose all the money in your account.
Cutting losses means abandoning sunk costs. This is also very difficult. Do you think that if you hold on a bit longer, it will reverse? Never think like that. If you are wrong, you are wrong; admit it. When you get hit, stand tall. Losing a limb to survive may be painful, but it can really save your life.
2. Do not trade frequently
This is a big taboo. Are you always thinking about making money on both sides? Wake up; not many people can do that. Be content if you can make money on one side. Another point is transaction fees. It’s okay with low leverage, but it’s painful with high leverage. As soon as you open a position, you lose 1-2% of your profit. You need to ensure that this trade can make money; otherwise, opening this position is meaningless.
3. Learn to stay out of the market
When you don’t understand the market, don’t open a position. At this point, you might say, "It’s painful to miss out on the market." But let me ask you, what’s more painful: missing out or losing money? Opening a position without understanding the market is no different from gambling.
Trading is about having a probability advantage. No one can accurately predict whether the market will rise or fall; the market changes too quickly. You can only say that there is a high probability it will rise or fall.
4. Progress step by step
Don’t think you can become rich overnight; this is a gradual process.
The crypto world will not make you wealthy instantly. For example, if you use 100 for capital, go long with 10x leverage, your position is 1000. If it rises by one point, you make 10 dollars; if it rises by two points, you get 20 dollars, which is enough for a breakfast. Now, working in a factory earns 15 dollars an hour. If you open three to four trades a day with a win rate of 60-70%, isn’t that more comfortable than working in a factory?
Friends who are currently confused and lack direction in trading, leave a comment 1; this bull market will help you get back on track.