What do you definitely need to know about the cryptocurrency market?
Retail investors have a common problem: when they incur losses, they stubbornly hold on; when they just make a little profit, they rush to sell, ignoring trends and trading volumes, only fixating on their account's profit and loss ratio. What’s the result? They suffer massive losses when the market is down, and earn pitifully small profits when it goes up. The approach should be the opposite: hold on to profits and cut losses quickly.
My principle for taking profits and cutting losses is very simple: if I make a profit of 15%, I will take profits if it retraces to 10%; if it continues to rise, I will hold on to let the profits run. Conversely, if the price drops after buying and losses exceed 5%, I will decisively cut losses.
As long as you can take profits of 10% each time and keep losses under 5%, even if you operate 100 times with a win rate of only 50%, your returns can still reach 300%. Is it difficult? The difficult part is not the method but whether you can conquer your own greed and fear.
