In this tempting and risky stage of the cryptocurrency world, I have experienced a thrilling journey, from the abyss of a 5 million loss to understanding the successful way of trading coins. Today, I am willing to share these valuable experiences with you.
When I first entered the cryptocurrency world, I was attracted by its all-day trading and lack of price limits, fantasizing about getting rich overnight. However, reality hit me hard, with significant losses and liquidation shadowing me. But it was these painful experiences that made me understand that those who succeed in trading coins are often those who have gone through bankruptcy, can summarize experiences deeply, and possess a strong mindset. Without experiencing liquidation and significant losses, one can never truly understand the importance of stop-loss; without experiencing the gap from profit to loss, one can hardly appreciate the huge shift in mindset.
As Sun Tzu said: The good fighter puts himself into a position which makes defeat impossible, and does not miss the moment for defeating the enemy. In cryptocurrency trading, survival is the first principle. No matter how many glorious achievements you have, a 100% loss will bring everything to zero. Therefore, it is essential to establish a correct capital management system, dividing funds into several parts, investing only a small portion in each trade, and setting strict stop-loss points. Once reached, exit without hesitation. Because success is just a small step forward, while failure may cause a big step back; capital accumulation requires time and opportunity, and we cannot lose the foundation of our principal due to human fears of loss and greed for profit.
The biggest enemies of trading are lack of patience and over-trading. The cryptocurrency world is like a battlefield, 'Three years without opening a business, open a business to eat for three years.' Bull markets and bear markets do not happen overnight; we need to patiently wait for trends to become clear. When the trend comes, follow it; when there is no trend, calmly observe. Over-trading will only let transaction fees eat into profits, and frequent entries and exits can lead to losing direction and missing out on major market movements. One must plan thoroughly before taking action, determining trends based on market price breakpoints, popularity atmosphere, transaction, and capital inflow conditions, without being confused by short-term fluctuations.
Trading in cryptocurrencies is a contest against human nature, and only a few can profit. Strong psychological quality is key; one must have the mindset and vision of 'the universe of liquidation.' If your heart races due to small fluctuations in funds, it’s better to exit early. When holding a big goal, small fluctuations will not interfere with decision-making, thus providing opportunities for substantial profits. Trading is not only a game against various market players but also a struggle against one’s own hopes, fears, and greed. Only by overcoming these human weaknesses and forming one’s own trading system can one let profits run during times of gain and stop losses timely during losses, thus reaching the shores of wealth.
The way is the logic of trading, and the method is the way of execution. The way of trading originates from the accumulation of knowledge, insight, and courage, exploring logical rules in the ups and downs of the market. At the same time, one must overcome the three major psychological enemies: hope, fear, and greed. One should feel fear when the market declines but remain hopeful, and be optimistic when the market rises yet filled with fear—these are all stumbling blocks to profit. Having one’s own way of trading and overcoming human weaknesses is essential to seize wealth opportunities in the market.
Stay rational: During market fluctuations, control emotions, formulate and strictly implement an investment plan, and not be swayed by short-term fluctuations.
Continuous learning: In-depth study of blockchain and cryptocurrency knowledge, paying attention to authoritative information sources, and mastering market dynamics.
Diversify investments: Multi-faceted layout, spreading funds across multiple potential projects and asset classes, and regularly adjusting the portfolio.
Risk management: Set stop-loss points, control the investment ratio of high-risk projects, and ensure capital safety.
Platform and wallet security: Choose reliable trading platforms, use hardware wallets, and enable security measures.
Focus on the long term: Look at long-term value, develop a long-term investment plan, and hold potential projects patiently.
Mindset and life balance: Do not overly focus on the market, maintain a balance between work, life, and investment, and relax appropriately.
Regularly review: Reflect on investment experiences, summarize reasons for success and failure, learn from others' experiences, and optimize strategies.
A new bull market for currencies is coming soon, which is an opportunity to achieve financial freedom. If you are confused in the cryptocurrency world, you might as well learn from these experiences and embark on a successful path. Follow my profile for daily spot market trends and comment 123.