In the cryptocurrency 'circle, there is a saying that goes well: only those who can 'sell' are masters.
In fact, it's simple to think about it. If your stop-losses are more frequent than your take-profits, you are highly likely to be losing money.
Most cryptocurrency friends tend to lose 5000 and continue to hold, while they only take profits at 500, many believe this is a manifestation of insufficient mental strength, but it's not. If you’ve lost a lot of money and are still holding, it actually shows that your ability to bear pressure is fine.
Not knowing how to take profits, or being unable to hold onto profitable positions, often stems from not knowing how to stop losses (it sounds a bit convoluted, but be patient, let me explain).
A: I opened a long position at 96,000, and my target was 100,000, but right after opening, it dropped to 92,000, and I had no stop-loss target. Then it fell to 90,000 and 88,000. After thinking for a long time, you decided to close at 85,000, admitting defeat. Fortunately, the market warmed up, and started to rise. After a few days, the price rose back from 90,000 to 96,000. You breathed a deep sigh of relief, wow, I broke even! The days of being trapped are finally over...
Next, the market continued to rise, but when it reached 98,000, it started to pull back to 97,500, 97,000-96,800. You began to feel fear, damn, this trapped feeling is too uncomfortable, it feels like it's going back to the 80s again. So, when it hit 96,500, you clicked to close the position, angrily making a profit of 500 dollars (yes, 500 dollars, no mistake, considering your opening and closing fees plus funding rates, you might not have even made 500). As soon as you closed, the market started to surge, 96,800, 97,000, 98,000, and no matter how much you slapped your thigh, it was of no help.
This is a sad story, but I believe it plays out every day.
