1. It is better to miss than to make a mistake
I have shared with you before that there are no good currencies, only good buying points! Because the entry point directly determines the exit point and how much profit you can make. Therefore, the entry point is absolutely the most important thing in my operation process. Even if you see that some stocks can rise, and the rise is very strong, but there is no buying point, you can only miss it, or participate in a small position. Because there is no buying point, it has risen, which means that the cost of entry is higher than others. It is easy to help others in the short term. If the funds are large, the psychology of a slight retracement will be uneasy. So either miss it, or wait for a retracement to find a good entry point to intervene.
2. Always leave a way out for yourself
Everyone is initially blinded by greed and enters the market with full confidence. As one gains more experience, they realize that there are often many unexpected events. Although the general direction is correct, the entry points one thinks of are often quite far from reality. When funds are small, position management issues don't become apparent, but once the funds increase, position management stands out. Being fully invested often results in frequent losses, short-term being stuck, and significant unrealized losses, which directly affect trading emotions. Therefore, one must always have a medium to short-term position strategy, and even with 200% confidence, one should not go all-in; it's equivalent to leaving a way out for oneself!
3. Earn what you are supposed to earn
Drowning in thousands, only take a sip. Most stock traders want to profit from every cryptocurrency from start to finish, wanting to capture all the ups and avoid all the downs. After years of experience, they end up with nothing. Finally, after reflecting on their pain, they decide to focus on one specific pattern. I only trade confirmed bottom patterns, so what I share is centered around the bottom; I only trade accelerated upward patterns after confirming the bottom. When we analyze any candlestick pattern, we can list profitable patterns and select a common one. Then, we stick to that pattern. Over time, this pattern becomes your cash machine because you are aware of most traps and the opportunities involved, making it easier to profit from what you are supposed to earn, which is also our goal in the cryptocurrency market.
4. The more losses in cryptocurrency trading, the more cautious one should be when averaging down
In the cryptocurrency market, many people become anxious after being stuck in a position. Instead of thinking about exiting, they keep averaging down, trying to recover losses through a surge. This actually goes against common sense. The process of decline cannot be reversed in one or two days, and averaging down is merely self-comfort. The more anxious one is, the more likely they are to make wrong decisions, leading to regret. Why do they dare to average down at this position?
5. Trading discipline must be strictly enforced
Many cryptocurrency traders create detailed plans before trading, such as deciding at which point the market decline will trigger their entry and what price levels of individual coins will be acceptable, but during trading, they are often easily swayed by stimuli and temptations. If you can't even execute your own plan properly, then you are not participating in the cryptocurrency market, but rather in a casino. Most operations during trading are likely to be incorrect.
6. Do not develop feelings for any asset
If you fall in love with the asset you are trading, it’s easy to make poor decisions. Excellent traders profit through efficiency and rules, gaining an advantage, because most market participants are driven by emotion. 'Being an emotionless trading machine' ensures decisiveness and adherence to principles in trading. Many traders suffer significant losses because they easily become emotionally attached to specific altcoins, teams, or projects. This may be acceptable for long-term investors, but for short-term traders, it’s a potential disaster.
7. Maintain simple trading rules
Traders typically combine various indicators, news, and candlestick patterns to find suitable trading convergence points. There’s nothing wrong with this, but one must be cautious to avoid over-analysis, which complicates matters. In reality, when a candlestick pattern that fits one's trading system appears on the chart, trading can begin. At the same time, it's especially important to set stop-loss orders and manage positions.
8. Only trade with the correct mindset
When you feel angry, tired, or pressured about something, do not trade; your mindset will affect your judgment. The key to maintaining a good mindset is having other daily activities outside of trading. Activities like fitness, reading, and spending time with family and friends help cultivate the right trading mindset.
9. Do not forget that technical analysis is a probability game
Technical analysis does not have absolute correctness; it is essentially a probability game. In other words, no matter what technical methods you use to formulate strategies, you cannot guarantee that the market will behave as expected. Technical analysis is merely a prediction and should not be treated as a deterministic event. Regardless of your experience or impressive track record, you should not assume that the market will follow your technical analysis. Holding such a mindset may lead to overbetting on a preset assumption, exposing yourself to excessive risk, and the market will teach you a lesson in no time.
10. Be strict with yourself
Overcoming oneself is difficult. On sunny days, one may think they understand their flaws and try to avoid them realistically. Trading doesn't need to be that complicated; it just needs to be simple and effective. When trading cryptocurrencies, one should find their own trading principles based on their characteristics and strictly implement them. Discipline and mindset control are more important than improving technical skills; only by doing so can one survive in the market for a long time. The most important thing in investing is to avoid failure, not to seize every success. The same goes for trading; it's better to let go than to make a mistake. Sometimes, waiting is also a form of profit.
