If you want to earn 10 million a year, trading cryptocurrencies is one path to consider for full-time trading!
1. Risk Management: Stick to trading no more than a certain percentage of your capital (e.g., 10% or less) each time, which can help you avoid significant losses in bad trades and allow you to participate in more trading opportunities.
2. Patience and Confidence: Maintaining patience is crucial in investing. Many investors miss potential market gains due to a lack of patience, closing positions too early. As long as the initial analysis and judgment have not been contradicted by new market information, you should hold your position.
3. Disciplinary Execution of Plans: Creating a plan and strictly adhering to it is key to maintaining consistency and avoiding emotional trading. Overtrading is often driven by greed and fear, leading to losses.
4. Take Profit and Stop Loss: When trades are profitable, adjusting the take profit and stop loss points can maximize returns while protecting realized profits. It is essential to be ready to exit at any time, acting immediately when market trends reverse.
5. Avoid 'Naked Trading': Always set a stop-loss when entering a position to protect your capital. In unpredictable markets, not setting a stop-loss is equivalent to being exposed to risks without protection.
6. Control Position Size: Even if trades start to be profitable, you should avoid increasing your capital investment. This can help prevent significant losses caused by blind overconfidence.
7. Long and Short Operations: Switching from long to short positions requires high judgment and market insight. Unless there are clear signals of market changes, it is not advisable to easily adjust the position direction.
8. Cautious Scaling Up: Even if you are accustomed to market fluctuations and can trade skillfully, any increase in investment should be approached with caution, as excessive confidence may cloud risk perception.