A common problem among retail investors worldwide is holding onto losses indefinitely. As soon as they turn from loss to profit, they sell immediately, without looking at the trend or trading volume, only focusing on their account profit and loss ratio. The result is unlimited losses and limited small profits, needing to operate in reverse: holding onto profits indefinitely and cutting losses at the slightest downturn. My principle for taking profits and cutting losses is to take profits at 15%, and if the profit falls to 10%, I take profits. If it continues to rise, I hold on and let the profits run. If it drops after buying and the loss exceeds 5% of the principal, I cut losses. If you can ensure a profit-taking of 10% each time and a stop-loss of 5%, then after 100 operations, even if your win rate is only 50%, your profit will reach 300%. Is it difficult? The difficult part is human greed and fear; knowledge and action must be unified.
You must remember that trend is king, follow the trend. Once the trend is established, there is no need for much analysis; you must follow it, follow the money flow, do not speculate, do not predict, do not assume. If you cannot judge the trend, look at the moving averages. The so-called moving average divides the market into bullish and bearish; bullish means going up, bearish means going down. For short-term trading, look at the daily moving average; if there is a volume breakout, you follow in. For medium to long-term trends, look at the weekly moving average; if there is a volume breakout, you enter, if it breaks, you exit. Following the trend means not going against it; if the market is bad, resolutely stay in cash. If the trend of the coin is down, do not easily try to catch the bottom, do not fantasize that you can buy coins that rise against the market, and do not imagine that once you buy, it will start to rebound; the probability of such a situation is too low. The core of trading coins is to engage only in high-probability events and give up low-probability events.
The fundamental to surviving in the market is to dare to admit mistakes and be able to control losses in a timely manner, which is far more important than not making a profit today. No matter what method you use, mastering just one is enough. You must use this method precisely, absolutely, and thoroughly. For short-term trading, you must look at the 15-minute, 30-minute, and 1-hour candlestick charts. You can find the entry and exit points for the day based on the KDJ indicator, and use the OBV indicator to clearly judge the intentions of the main forces. The fundamental difference between a washout and distribution lies in whether the volume is shrinking or increasing. When a strong coin is on the rise and a risk warning announcement appears, it can be understood as 'just a volume reduction for shaking out positions, at least a new high can be expected.'
In the past few days, I have been preparing for the launch of my excellent trading plan!!!
Comment 168 to get on board!!!
Impermanence brings impermanence brings impermanence!!!
Important things should be said three times!!!
