In this tempting and risky world of cryptocurrency, I have experienced a thrilling journey, from a loss of 5 million to understanding the path to success in trading cryptocurrencies. Today, I am willing to share these valuable experiences with you.
Upon entering the crypto world, I was attracted by the charm of 24/7 trading and no price limit, fantasizing about getting rich overnight. However, reality dealt me a heavy blow, with significant losses and liquidation haunting me. But it is these painful experiences that taught me that those who make money in trading are often those who have experienced bankruptcy, can summarize their experiences deeply, and have a strong mindset. Without experiencing liquidation and significant losses, one can never truly understand the importance of stop-loss; without experiencing the gap between profit and loss, it is difficult to comprehend the huge shift in mindset.
As Sun Tzu said: The good warrior of old first ensures his invincibility and then waits for the enemy's vulnerability. In cryptocurrency trading, survival is the first principle. No matter how many glorious achievements one has in the past, a 100% loss will bring everything to zero. Therefore, it is essential to establish a correct capital management system, dividing funds into several portions, investing only a small part in each trade, and strictly setting stop-loss points. Once touched, exit without hesitation. Because success is just a small step forward, while failure can lead to a big step back. Capital accumulation requires time and opportunity, and we cannot lose the foundation of our principal due to the fear of loss and greed for profit inherent in human nature.
The biggest enemy of trading is lack of patience and overtrading. The crypto world is like a battlefield, 'No business for three years, but they eat for three years when they do.' Bull markets and bear markets do not happen overnight; we need to patiently wait for trends to become clear. When the trend comes, follow the trend; in the absence of a trend, calmly observe. Overtrading will only let fees eat into profits, and frequent entry and exit can lead to losing direction and missing out on major trends. One must plan before acting, determining trends based on market price breakpoints, sentiment, trading, and capital inflows, without being confused by short-term fluctuations.
Trading cryptocurrencies is a battle against human nature, and only a few can profit. Strong psychological quality is key; one must have the mindset and perspective of 'liquidation universe.' If your heart races due to small fluctuations in funds, it is better to exit early. When holding a big goal, small fluctuations won't interfere with decision-making, which allows for the opportunity to gain large profits. Trading is not only a game against various market players but also a struggle against one's own hopes, fears, and greed. Only by overcoming these human weaknesses, forming one's own trading system, allowing profits to run when in profit, and promptly cutting losses when in loss can one reach the shores of wealth.
The way is the logic of trading, the method is the approach and technique. The way of trading comes from the accumulation of knowledge, insight, and courage, exploring out logical patterns that conform to rules amidst market fluctuations. At the same time, one must overcome the three psychological enemies of hope, fear, and greed. When the market falls, one should be fearful yet hopeful; when it rises, one should be optimistic yet fearful. These are all stumbling blocks to profit. By having one's own way of trading and overcoming human weaknesses, one can seize wealth opportunities in the market.
Stay rational: Control emotions during market fluctuations, formulate and strictly execute investment plans, and do not be swayed by short-term volatility.
Continuous learning: Deeply research blockchain and cryptocurrency knowledge, focus on authoritative information sources, and grasp market dynamics.
Diversified investment: Multi-faceted layout, spreading funds across multiple potential projects and asset classes, adjusting the portfolio regularly.
Risk management: Set stop-loss points, control the investment ratio in high-risk projects, and ensure capital safety.
Platform and wallet security: Choose reliable trading platforms, use hardware wallets, and enable security measures.
Focus on the long term: Look at long-term value, develop a long-term investment plan, and patiently hold potential projects.
Mindset and life balance: Do not overly focus on the market, maintain a balance between work, life, and investment, and relax appropriately.
Regular review: Reflect on investment experiences, summarize the reasons for successes and failures, learn from others' experiences, and optimize strategies.
A new bull market for currencies is coming, presenting an opportunity for financial freedom. If you feel lost in the crypto world, you might as well draw on these experiences to embark on the path to success. Follow my profile for daily spot market trends and comment 123.