1. It is better to miss than to make a mistake
I have shared with you before that there are no good stocks, only good buying points! Because the entry point directly determines the exit point and how much profit you make. So the entry point is absolutely the most important thing in my operation process. Even if you see that some stocks can rise, and the rise is very strong, but there is no buying point, you can only miss it, or participate in a small position. Because there is no buying point, it has risen, which means that the cost of entry is higher than others. It is easy to help others in the short term. If the funds are large, the psychology of a slight retracement is uneasy. So either miss it or wait for a retracement to find a good entry point to intervene.
2. Always leave yourself a way out.
Everyone is the same; at first, they are blinded by greed, trading with full positions, always believing they are very confident. As experiences accumulate, they realize that there are often many unexpected occurrences. Although the general direction is correct, the entry points they consider often deviate from reality. When funds are small, position management issues do not become apparent, but when funds increase, position issues are highlighted. The result of being fully invested is often riding an elevator, getting trapped in the short term, leading to significant unrealized losses, which directly affects trading emotions. Therefore, one must always have a mid to long-term position strategy, and even with 200% confidence, one should not have a 100% position, which is equivalent to leaving a way out for oneself!
3. Earn your rightful share.
Drowning in the sea, only take a sip. Most stock traders want to eat the entire portion of every cryptocurrency from start to finish at the beginning, wanting to capture the rise while avoiding the fall. After several years, they end up with nothing and realize their mistakes, ultimately deciding to focus on one pattern. I focus on confirming bottom patterns, so everything I share centers around the bottom; only add to positions once the bottom has been established for acceleration in upward trends. We can open any candlestick chart, list profitable patterns, and choose a common one. Then firmly stick to this pattern; over time, this pattern will become your cash cow because you clearly understand most of the traps and the opportunities it holds. Thus, making money becomes easier, earning the share you are entitled to, which is also our purpose in the cryptocurrency world.
4. The more you lose in cryptocurrency trading, the more cautious you should be about averaging down.
There are many traps in the cryptocurrency market. Many people become anxious after being trapped, and instead of thinking about exiting this time, they keep averaging down, trying to lower their holding costs, hoping for a rebound to break even, which actually goes against common sense. The process of decline cannot be reversed in one or two days; averaging down is just self-comforting. The more anxious you are, the easier it is to make wrong moves, and in the end, you will regret it. Why dare to average down at this position?
5. Strictly enforce your trading discipline.
Many crypto traders will make detailed plans before trading, such as waiting for the market to drop to a certain point before acting, or setting specific price points for individual coins. However, during trading, they are often easily influenced by stimuli and temptations. If you can't even execute your own plan, you are not trading in the crypto market, but in a casino, and 80-90% of the actions taken at that moment are likely to be wrong.
6. Do not develop feelings for any asset.
If you fall in love with the asset you are trading, it can easily lead to poor decision-making. Excellent traders make money by using efficiency and rules, giving themselves an advantage, because most people's trading behavior in the market is driven by emotions. "Be a trading machine without emotions" can ensure decisiveness and principle in trading. Many traders suffer heavy losses because they easily become emotionally attached to certain specific altcoins, teams, or projects. This can be acceptable for medium to long-term investors, but it is a potential disaster for short-term traders.
7. Keep your trading rules simple.
Traders usually combine various indicators, news, and candlestick patterns in an attempt to find suitable convergence points for trading. There is nothing wrong with this, but it's important to avoid over-analyzing, which complicates issues. In fact, when a candlestick pattern suitable for your system appears on the chart, it can be the right time to initiate a trade. At the same time, make sure to set stop-loss orders and control your position size, as this is particularly important.
8. Only trade with the right mindset.
When you feel angry, tired, or stressed about something, do not trade, as your mindset will affect your judgment. The key to maintaining a good mindset is having other daily activities outside of trading. For example, fitness, reading, and spending time with family and friends all help cultivate the right trading mindset.
9. Don't forget that technical analysis is a probability game.
Technical analysis does not exist in absolute correctness; it is essentially a probability game. That is to say, no matter what technical method you use to formulate strategies, you cannot guarantee that the market will behave as expected. Technical analysis is merely a form of prediction and should not be treated as a deterministic event for trading. Regardless of how rich your experience is or how bright your track record, you cannot take it for granted that the market will follow your technical analysis. Holding such a mindset makes it easy to overly bet on a preset point, leading to excessive exposure to risk, and the market will teach you a lesson in no time.
10. Be strict with yourself.
Defeating oneself is very difficult. On clear days, one hopes to understand their flaws and avoid them realistically. Trading doesn’t have to be complicated; simple and effective is sufficient. Traders must find their own trading principles based on their characteristics and strictly implement them. Discipline and mindset control are more important than improving technical skills; only in this way can one live long in the market. The most important thing in investing is to avoid failure, rather than seizing every opportunity for success. This is also true in trading; it is better to miss an opportunity than to make a mistake. Sometimes waiting is also a form of profit.
If you are still confused, you can click me to connect!
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