I am in the cryptocurrency space, growing an initial capital of 100,000 to about 20 million, which is undoubtedly an amazing achievement that embodies profound wisdom and the essence of practical experience. Below is a summary of my experiences:
1. Strict Risk Control: The risk of each trade should be strictly controlled within 10% of the principal. For beginners, the risk exposure should be compressed to 2%-5% to ensure staying undefeated during market fluctuations and to avoid losing everything due to a forced liquidation.
2. Patience in Waiting: The market needs time to verify the effectiveness of a strategy; do not close positions early due to short-term fluctuations or lack of patience. Patience in waiting for the market to fully ferment is key to stable investment.
3. Plan First: Always develop a detailed plan before trading and strictly adhere to it. Overtrading only increases the risk of mistakes; a stable trading strategy is the long-term solution.
4. Dynamic Adjustment: After making a profit, promptly adjust the take-profit and stop-loss points to lock in profits and follow market trends. Once signs of a trend reversal are detected, take immediate action to avoid giving back profits.
5. Adhere to Stop-Loss: Setting a stop-loss is a crucial part of trading; after entering a position, one should persist in implementing risk management strategies and should not casually cancel stop-losses due to market fluctuations.
6. Rational Position Scaling: When the market is favorable, avoid greedily adding to positions to prevent breaking the capital chain. A stable position scaling strategy should be based on market trends and risk management principles.
7. Cautious Transition: Transitioning from long to short positions requires high trading skills and market insight; beginners should not attempt this lightly. When changing positions, fully consider market risks and personal tolerance.
8. Maintain Caution: When trading goes smoothly, one should maintain a cautious attitude and avoid falling into the trap of complacency due to profits. Always keep a clear mind and calm judgment, which are important guarantees for stable investment.
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