Yes, because making money in the cryptocurrency world is the fastest industry!!!
Because the logic of making money in the cryptocurrency world is legal robbery.
In the cryptocurrency world, one can earn 50,000, 100,000, 200,000, or even 1 million in one day. This does exist and the probability is much higher than in other traditional markets.
For example: Doge in 2021, TRB in 2023, and people in 2024.
Let's first talk about this industry. First, we must understand that we work not to make money, but to sell our labor. Salary is just a means to tempt you to work hard.
The ultimate goal is not to make you earn more money, but to make you contribute more labor surplus value to create more value for the company. Do not exchange your health for money.
The purpose of your work is to make money to enjoy a better life, not to squander your life. However, human nature is often irrational. Once you start to compare yourself with others, you will fall into an insatiable desire for profit, and there will always be someone willing to gamble their life away.
Life is a pursuit of subjective feelings. In order to satisfy various desires, people can become obsessed with the exchange of money, which is a product of hierarchy. Only when their lives are threatened will they be willing to let go of class anxiety, accepting that it is okay to enjoy within their class. However, some people are already trapped by mortgage and car loans and do not dare to enjoy; working hard to make money is the only choice. Those who create the concept of class will also create consumerism.
In order to live a better life, people have to work hard to make money, but in the end, they can only become a stepping stone for others.
A very simple and foolish method, but it can help you avoid losses.
This trick is common sense. As long as you have self-discipline, all cryptocurrency traders can do it. The more you lose in trading, the more cautious you should be in averaging down.
There are many traps in the cryptocurrency market. Many people feel anxious after being trapped in trading.
Not only do you not think about exiting this time, but you keep averaging down, trying to lower your average cost and hoping to make a comeback. This actually goes against common sense.
The process of decline cannot be reversed in one or two days. Averaging down is merely self-comforting. The more anxious you are, the easier it is to make wrong decisions, leading to regret. Why would you dare to average down at this position?
Two, trading discipline must be strictly enforced.
Many traders will formulate detailed plans before trading, such as when the market drops to a certain point to take action or at what price to enter certain cryptocurrencies, but during trading, they are often easily stimulated and tempted. If you cannot even execute your own plan, you are not playing in the cryptocurrency world, but in a casino. Most of the operations at the moment of trading are wrong.
Three, do not trade frequently.
Many traders who suffer serious losses are doing ultra-short trades, while those who treat trading as entertainment without advanced skills will wait patiently and not incur significant losses.
Four, trading should avoid constantly increasing positions, while in the circle, it’s about throwing down money and sewing up in life.
However, this is a very real portrayal. Before you have the ability to make money, do not continually add to your account, especially if it affects your standard of living.
Loss indicates that your trading system has flaws. At this time, you should not try to fill the hole by increasing your position. Instead, you should reflect, calmly explore an effective method, and then increase your efforts.
Five, missing out on an opportunity will not incur losses, but chasing after prices often leads to cutting losses.
There is a common phenomenon in the cryptocurrency world where stocks that you are interested in but do not participate in perform very well. When you want to buy at high positions, it almost collapses immediately. The reason is that the company's operations have not changed; try to choose a median price as a reference. Avoid standing guard at high positions when the price is low.
Six, trading must follow the trend.
Trends are simply three types: upward trend, downward trend, and sideways trend.
Undoubtedly, in a downtrend, trading with light positions or even being out of the market during an uptrend greatly increases your success rate.
Seven, do not touch anything that has not stopped falling during a decline.
Buying the dip during a decline is like catching a flying knife with bare hands, putting yourself in danger. You must wait for a significant bullish candlestick to appear, which is a signal to stop the decline before you can slowly buy in. This is the right-side buying method; blindly buying the dip will only lead to deeper losses.
Remembering the above common sense can help you avoid the vast majority of losses. Many times, many technical patterns can be clearly explained with common sense; people are just blinded by the cryptocurrency world.
Digital currency investment advice for friends in the market.
1. Make good use of stop-loss.
When you trade, you should establish a tolerable loss range, make good use of stop-loss orders to avoid uncontrollable losses! The stop-loss range should be based on your account's financial situation. If you do end up hitting the stop-loss, do not regret it, because you have removed the risk of the market continuing to worsen and the losses expanding infinitely.
2. Do not rely solely on luck and intuition.
If you do not have a fixed trading method, then your profits are likely to be very random, relying on luck. Such profits cannot last long, or on a day when luck runs out, the same losses will occur. Trading intuition is important, but relying solely on intuition to trade is a risky behavior. Understanding the reasons for profit and developing your own profit-making methods is the most important.
3. Act within your means.
You should measure your trading volume based on your account amount and avoid overtrading. Generally, do not risk more than 20% of your account funds for each trade. Following this rule can effectively control risk. Trading too many lots in a single trade is unwise and can easily lead to uncontrollable losses.
4. Trading capital must be sufficient.
The smaller the account amount, the greater the trading risk. Therefore, avoid letting your trading account be only enough for a 100-point fluctuation. Such an account amount does not allow for a single mistake. However, even experienced traders can make mistakes in judgment.
5. Learn to thoroughly execute your trading strategy, do not find excuses to overturn existing decisions.
To avoid this fatal mistake, you must remember a simple rule. Do not let risk exceed the previously set tolerable range. Once the loss reaches the previously set limit, do not hesitate, immediately close the position!
6. Mistakes are inevitable; learn from them and do not repeat them.
Errors and losses are inevitable; do not blame yourself. The important thing is to learn from them and avoid making the same mistakes again. The quicker you learn to accept losses and draw lessons, the sooner profitable days will come. Additionally, learn to control your emotions; do not be proud because you made money, nor be discouraged by losses. In trading, the less personal emotion you have, the clearer you can see the market situation and make correct decisions. Face gains and losses with a calm mindset. Understand that traders learn not from profits, but from losses. When you understand the reasons for each loss, it means you have taken another step towards profitability because you have found the right direction.
7. You are your biggest enemy.
The biggest enemy of traders is themselves – greed, impatience, uncontrolled emotions, lack of precaution, and excessive self-importance can easily lead you to overlook market trends and make erroneous trading decisions. Do not trade simply because you haven’t done so for a long time or out of boredom. There are no fixed standards that require a certain amount of trading within a specific period.
8. Follow the trend, do not go against it.
Speaking is one thing, doing is another. Some people may understand every point mentioned in the text above, but when it comes to actual operations, problems arise continuously because the mindset during operation is completely different from when you are reading this article. At this time, you need to find a trusted mentor to help you with risk control, allowing you to operate without worries and effectively control the risk.
The most important thing in investing is not how much you can earn in a single instance, but whether you can control risk and achieve steady profits in the long run. For any operation, before entering, you must first look at the trend, accurately determine the trend, find a suitable entry point, and finally manage your timing. Finding the right direction minimizes risk and maximizes profit. Because of focus, professionalism in investment means that everyone has their own different experiences and stories. As long as you are good at summarizing, overcoming weaknesses in your character, whether greed or fear, and cultivating the right investment mindset and good operating habits, one day, you will leave behind your own brilliant investment story.
Since the Federal Reserve cut interest rates, many newcomers wanting to enter the cryptocurrency world have flooded in. The cryptocurrency world is a place where the fittest survive. The threshold is low, everyone can enter, but not everyone can make money. If you plan to enter the cryptocurrency world, please remember that it is not a place for overnight riches, but a field that requires long-term accumulation and continuous learning.
Many people come to the cryptocurrency world with dreams of getting rich overnight, fantasizing about turning a few thousand into 1 million in capital. Of course, some have succeeded, but in most cases, it can only be achieved through 'rolling positions.' Although rolling positions are theoretically feasible, it is not an easy path.
So how should small funds grow larger?
Here we must mention the power of compound interest. Imagine, if you have a coin, and every day its value doubles, then after a month, its value will become astonishing. The first day doubles, the second day doubles again, and so on, the final result will be astronomical. This is the power of compound interest. Even if you start with small capital, it can grow to millions after a long time of continuous doubling.
Currently, for friends who want to enter with small funds, I recommend focusing on big goals. Many people think small funds should frequently engage in short-term trading to achieve rapid appreciation, but in fact, it is more suitable for medium to long-term trading. Instead of earning small amounts of profit every day, you should focus on achieving several times growth with each trade, using multiples as the unit for growth.
When it comes to position, you must first understand how to diversify risk and not concentrate all your funds in one trade.
You can divide your funds into three to four parts, using only one part for trading each time. If you have 40,000, divide it into four parts and use 10,000 for trading. Next, you should use leverage moderately.
Moreover, you must dynamically adjust. If you lose, supplement the equivalent amount of funds from the outside; if you earn, withdraw appropriately. No matter what, do not let yourself incur losses.
Finally, you should increase your position, but this is based on the premise that you are already in profit. When your funds grow to a certain extent, you can gradually increase the amount for each trade, but do not increase too much at once; transition slowly.
I believe that through reasonable position management and stable trading strategies, small capital can gradually achieve significant appreciation. The key is to patiently wait for the right opportunity and focus on the big objective of each trade, rather than small daily profits.
Of course, I have also been liquidated, but at that time, I still had spot profits to cover my losses. I don't believe that none of you have made a penny with your spot holdings. My futures only account for 2% of the total capital, no matter how much I lose, I won't lose it all; the loss is always within my controllable range. Finally, I hope each of us can accumulate and burst forth, making a few hundred or even millions.
Original content is not easy. I am Dahu, sharing valuable content for retail investors every day! There is a way to the soul, and there is a technique to handle coins. The above content is my experience after more than a decade of fighting in the market, constantly summarizing and reflecting, which led to today's achievements. It seems simple, but achieving consistency between knowledge and action is not easy. I hope to help the vast number of cryptocurrency enthusiasts avoid detours!
