In the cryptocurrency circle, there is a saying: only those who can 'sell' are masters.
In fact, it’s quite simple. If your number of stop-losses is greater than your number of take-profits, you are very likely to be losing money.
Most cryptocurrency friends often lose 5000 and continue to hold, while making 500 and closing the position. Many people think this is a sign of a weak mindset, but that’s not the case; losing a lot of money and still holding on indicates that your ability to withstand pressure is actually fine.
Not knowing when to take profits, or being unable to hold onto profitable positions, often stems from not knowing when to stop losses (it sounds a bit convoluted, but don’t worry, let me explain).
A: I opened a long position at 96,000, aiming for 100,000, but right after opening, it dropped to 92,000, and I didn't have a stop-loss target. Then it quickly fell to 90,000, 88,000. After thinking for a long time, I said forget it, I’ll close at 85,000, admitting defeat. Fortunately, the market warmed up and started to rise; after a few days, the price climbed back from 90,000 to 96,000. I breathed a deep sigh of relief; wow, I broke even! I finally endured those days of being trapped...
Next, the market continued to rise, but when it hit 98,000, it started to pull back to 97,500, 97,000-96,800. You began to feel fear; damn, being trapped like this is too uncomfortable, it feels like it’s going back to the 80s again. So, at 96,500, you clicked to close the position, angrily making a profit of 500 dollars (yes, 500 dollars; no mistake, considering your opening and closing fees plus the funding rate, you probably didn’t even make 500). As soon as you closed, the market started to surge: 96,800, 97,000, 98,000. You slammed your thigh in frustration, but it was too late.
This is a sad story, but I believe it plays out every day.