The Art of Spot Profit-taking: Why do retail investors often "fall" on potential coins?
Many retail investors who chase short- and medium-term waves in the spot market often hold a coin with great potential, but end up with little gain, or even leave the market in disgrace. Their "Waterloo" is often not because they chose the wrong coin, but because they don't know how to "stop profit" elegantly.
Stop profit, the word sounds simple, but it is a big deal to do. It tests the wisdom, patience and concentration of investors. So, how can we determine the "just right" stop profit point?
Method 1: Look back at historical peaks and find pressure points. Imagine that the price of a coin is like climbing a mountain, and every time you rush to the top, you will leave a trace. These historical "peak pressure points" are the stop profit references we are looking for.
Method 2: Count the profit of the band and take the average. Treat each small band from the low point of the coin price to the high point as a small opportunity to make money. We only need to calculate the average profit of these small opportunities to get a relatively safe stop profit target.
Method 3: Do it yourself and draw lines to determine the situation. Take out your candlestick chart and draw support and pressure lines like an artist. Connect low points to low points, high points to high points, or low points to high points, high points to low points... In short, the shortest line between two points is the straight line. In the superimposed triangle formed by the lines, those connecting points are the "pressure level" and "support level" of the band. Of course, this requires you to have a keen insight into the highs and lows.
Method 4: Set a profit target and stop when you are ahead. This method is the simplest and most direct. Before entering the market, set a clear profit target for yourself. Once you reach this goal, you will "lock in the bag" without hesitation.
Finally, I want to say that in the spot market, "not being greedy" is the secret to making a profit. Greedy people are often easily trapped, and the feeling of turning from profit to loss is really too aggrieved. So, friends, learn to stop profit! Let every potential coin become a ladder for your wealth growth.
