If you are in a losing position in futures, and you want to turn losses into profits, you need to read this article carefully to avoid detours!
Follow these six points to ensure you can make a profit!!
One: Learn to take profits and cut losses
The market changes rapidly, and you must learn to take profits and cut losses. It's not too difficult to say; taking profits controls your greed. A cryptocurrency won't rise endlessly, nor will it fall continuously; there are cycles. Therefore, taking profits becomes especially important. Don't always worry about closing too early and missing out on future profits! You must remember that the money in the crypto world is never-ending, but the money in your account can be lost completely.
Cutting losses means giving up on sunk costs, which is also difficult. Don't always think that if you hold on a bit longer, the market will reverse in the next second. Never think like that. If you're wrong, you're wrong; you have to admit it. Stand tall when being hit. Though it hurts to cut off a limb to survive, it can truly save your life.
Two: Don't trade frequently
A big taboo: Don't always think about making profits on both sides? Wake up, not many people can do that; be content with making profits from one side. Another point is transaction fees; it's fine with low leverage, but it's tough with high leverage. You lose 1-2 points of profit as soon as you open a trade. You must ensure that this trade can make money; otherwise, there's no point in opening it, and all the profits go to the market makers as fees!
Three: Learn to hold cash
When you can't understand the market, don't blindly open trades. At this point, you might say that missing out on a rally is painful. So, let me ask you, which is worse: missing out or losing money? Blindly opening trades without understanding the market and direction is no different from gambling! Trading requires a probabilistic advantage. No one can accurately predict whether the market will rise or fall; the market changes too quickly. You can only say there's a high probability of rising or falling.
Four: Progress gradually
Don't always think you can become a big shot overnight; you can't rush to eat hot tofu!
The crypto world won't make you rich overnight. For example, if you invest 100, leverage it 10 times, your position is 1000. If it rises by one point, you earn 10 bucks; if it rises two points, you make 20 bucks, which is enough for a breakfast. Now, working in a factory earns 15 bucks an hour, and if you do three or four trades a day with a win rate of 60-70%, it's more comfortable than working in a factory.
Five: Never over-leverage
Absolutely do not over-leverage. An unexpected event could wipe you out. For example, if the market is expected to rise, and suddenly there’s a heavyweight news that causes it to drop sharply, and you haven't set your stop loss, then it's over! So don't rush; always trade with small positions, prioritize stability. The crypto market is not short on opportunities; it will always be there, at least for the next 10-20 years. So don't be deceived by the illusions in front of you!
Six: You must know and act in unison.
This is indeed quite difficult, including sometimes I can't fully achieve this. Human weaknesses are hard to grasp!
I used to be a novice too, and I didn't understand these basic questions at first. I opened trades blindly, hoping my sharing can help everyone!
Also, I remind everyone! The cryptocurrency market is full of uncertainty and challenges, but it also contains potential opportunities. Investors should fully understand the associated risks when participating in cryptocurrency investments, remain calm and rational, and adopt a prudent strategy to cope with market changes!
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