.Currency: Determine the type of cryptocurrency you want to trade. For example, Bitcoin (BTC), Ethereum (ETH), etc.
2. Position: Decide the amount you want to hold. This depends on your capital management strategy and risk tolerance.
3. Direction: Determine whether to go long (buy) or short (sell). This needs to be judged based on market trends and technical analysis.
4. Entry Point: Determine at what point to enter the trade. You can decide based on technical indicators, support and resistance levels, etc.
5. Stop Loss: Set a point to exit losing trades to control risk. A stop loss is usually set below the entry point.
6. Take Profit: Set a point to exit profitable trades to ensure profit. A take profit is usually set at the target price level.
7. Countermeasures: Develop strategies to respond to unexpected situations. For example, measures to take when significant news or volatility occurs in the cryptocurrency market.
8. Follow-up: Actions after the trade ends. For example, record trade logs, summarize experiences and lessons learned, adjust strategies, etc.
After formulating the strategy, what you need to do next is execute it, then wait patiently, strictly adhere to trading discipline.
Quietly wait for the market to move towards your expected target. Over time, there are essentially two outcomes:
Loss: Summarize experiences, accumulate lessons, become more resilient, losses are a normal trading cost, very normal.
Big Profit: Take the profit, you can increase your position or adjust the stop loss level to seek more profit.
A trading process is thus considered complete.
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