How to avoid losing money in the cryptocurrency circle
Next, I will summarize my experience in the cryptocurrency circle for many years
In the cryptocurrency circle, retail investors usually have the following characteristics: they are reluctant to sell when they lose money, but they are eager to sell when they just make a little money. They don't look at the market trend at all, and they don't care about the size of the transaction volume. They only focus on whether their accounts are profitable or losing. The result of this is that when you lose, you lose more and more, just like being stuck in a quagmire; when you make money, you make very little, just like only a little water flow.
The correct approach should be the opposite: when you make money, you must hold on to your investment, and once you lose money, you must decisively sell and stop loss.
Taking my stop-profit and stop-loss principle as an example, this method is very simple: when the profit reaches 15%, if the profit is reduced to 10%, then sell and stop profit; if the market continues to improve and the price continues to rise, then continue to hold and let the profit continue to increase. On the contrary, if the price falls after buying and the loss exceeds 5%, you must stop loss and sell immediately.
Think about it, if you can achieve a 10% profit target every time and strictly control the stop loss within 5%, even if you operate 100 times and the winning rate is only 50%, the final profit can be as high as 300%. Is this difficult to do? In fact, the difficulty is not this method, but whether you can overcome your inner greed and fear.
