If you are in a losing position with your contract, then you need to read this article carefully. Please be sure to follow the points below.
Ensure that you can achieve profitability; the following points are very important.
1. Learn to take profits and cut losses.
This point has been mentioned many times. The market changes rapidly; you must learn this. It's not that hard. Taking profits controls your greed. A coin won't rise endlessly, nor will it fall perpetually; there are cycles. Therefore, taking profits becomes particularly important. Don't say you closed your position too early and missed out on future profits. You must remember that the money in the cryptocurrency market is not endless, but the money in your account can be lost completely.
Stop-loss is about giving up on sunk costs. This is also very difficult. Do you think that if you just hold on, the market will reverse? Never think like that. Wrong is wrong; you have to admit it. If you get hit, stand straight. Losing an arm to survive may hurt, but it can save your life.
Just to reiterate, when opening a position, ensure you have enough margin for error. The direction may be correct, but if your volatility tolerance is too low, you may easily be thrown off track.
2. Don't trade frequently.
It's a big taboo; are you always thinking about making money on both sides? Wake up! Not many can achieve that. Be content with earning from one side. Another point is the transaction fees. It's manageable with lower leverage, but with higher leverage, it's painful. You lose 1-2 points in profit as soon as you open a position. You need to ensure that this trade can make a profit; otherwise, it's meaningless to open it.
3. Learn to avoid holding a position
When you don’t understand the market, don’t open a position. You might say, ‘It’s uncomfortable to miss out.’ So let me ask you, is it more uncomfortable to miss out or to incur losses? Opening a position without understanding the market is no different from gambling.
Trading is all about having a probability advantage. No one can accurately predict whether the price will go up or down. The market changes too quickly; you can only say that there is a high probability it will go up or down.
As a side note, the top two exchanges now have copy trading features. If you're unsure about your own trades or often misjudge the direction, you can try the copy trading area. Choosing the right trader is also very important.
4. Progress gradually.
Don’t think you can become rich all at once. Such things are gradual.
The cryptocurrency market won't make you rich overnight. For example, if you start with 100 and open a long position with 10x leverage, your position size is 1000. If it goes up one point, you earn 10 dollars; if it goes up two points, you earn 20 dollars, which is enough for a breakfast. Nowadays, working in a factory pays 15 dollars an hour. If you make three or four trades a day and have a win rate of 60-70%, isn’t it more comfortable than working in a factory?
5. Never go all in with high leverage.
Don’t go all in with high leverage. If something unexpected happens, you could lose everything. Just when you expect the price to rise, a major news event could cause an immediate reversal. If you didn't set a stop-loss, then you’re done for.
Stay rational; don’t get too emotional, especially after a liquidation. (This is the consequence of not setting stop losses. Liquidation leads to a series of chain reactions, making stop-losses particularly important.)
At this moment, you might really want to recover your losses. You must keep your rationality in control. If you're afraid you can't control yourself, you can enable the contract's cool-off period.
Don't think that just because you missed a wave of the market during the contract's cool-off period, there isn't a market or opportunities in the cryptocurrency space. There are always opportunities; at least for the next 10-20 years, they will be there.
6. You must unify knowledge and action.
This point is indeed quite difficult. Even I sometimes can't fully achieve it. The weaknesses of human nature are hard to grasp.
I will update with more points later.
I was once a novice, and I didn't understand these fundamental issues. I opened positions randomly and without a plan. After being in the industry for a long time, I realized that the cryptocurrency market can really change your fate. The current market is turbulent, and walking alone is lonely. Follow me by clicking on my profile, and leave a message saying 333 for daily spot potential layouts and bull market strategy layouts.
