Triggering rules for stop loss and stop profit

Although the words of the big guys who make a living by speculating in cryptocurrencies are still ringing in my ears, I have tried to understand them, but I have not yet reached that level. Stop loss and stop profit are still necessary.

Stop loss tests the determination to kill and the action of a knife! The simpler the stop loss rules, the better! What percentage stop loss, support level stop loss, and moving average stop loss are all a bit complicated. After long-term practice, the most efficient is the absolute loss amount stop loss. There are two specific situations, taking a 100,000 account as an example:

① The loss amount of a single coin exceeds 10,000 yuan → stop loss for clearing coins

② The loss amount of the account exceeds 20,000 yuan → stop loss for clearing positions

When the account is N times of 100,000, the stop loss amount is also increased by N times.

※Note: Stop loss must be unconditional and without reason! Any conditions and reasons must give way to the absolute loss amount stop loss.

Stop profit requires judging the situation and dynamically adjusting the stop profit and target amount of a single coin. When the stop-profit condition is triggered, we must overcome greed and luck, and avoid procrastination and slow action.

Take the Landlord game as an analogy: when it is 50,000 beans, you can stop profit at 25,000 beans, and the target is 100,000 beans. When it is 100,000 beans, you can stop profit at 50,000 beans, and the target is 200,000 beans. And so on. When the stop-profit is triggered, exit the game or play something else.

For individual coins, after buying on the same day, if the trend is in line with expectations and no adjustment is required the next day, sell according to the stop-profit amount. If the target amount is reached the next day, the new stop-profit amount is triggered, and it is necessary to sell according to the new stop-profit amount. The next day after buying, if the situation improves, increase the stop-profit and target amounts. The next day after buying, if it is not as expected, it should be sold as soon as possible to avoid turning profits into losses. If losses have already occurred, try to lose as little as possible. Finally, stop loss according to the stop-loss rules.