The operation itself is also the kind of leverage that is opened very large. In a one-way market, if the technology is good, it is easy to make money. But if the market falls, it will fail.
This time, as BTC broke through 70,000 a while ago, I rolled the position to A8 at a direct cost of several thousand RMB.
As a result, when the market was bad recently, I couldn't help but continue placing orders, losing hundreds of thousands every day. After falling for such a long time, all my money was lost.
In just one month, it changed from A8 to A0.
With his technical market, he may be able to continue to turn around this time, but what I want to say is that I have summarized some trading principles from his operations and similar experiences I have heard in the past, which we can learn from:
1. Avoid frequent trading
For example, this friend is good at short-term unilateral market. When the market is good and the direction is right, plus some good operation skills, it is easy to roll up the position. But the volatile market is not suitable for his trading. When he finds that the market is not right, he must stop trading. Although he had expected this volatility, he did not reduce the order opening frequency and position, which led to losses.
Livermore said, "While you are doing nothing, the speculators who feel they must buy and sell every day are laying the foundation for your next speculation, and you will find profitable opportunities in their mistakes."
2. Learn to diversify your investments
Diversify your investments and don't concentrate all your funds in one field/coin. Coin trading is not a love affair. There is no coin that only goes up and never goes down, and there is no coin that only goes down and never goes up. Any coin has an up phase and a down phase. It is very important to correctly grasp the buying and selling points. It is not about blindly holding on to it or repeatedly operating only one coin. You need to flexibly operate in combination with market hot spots, policies, and the actual situation of the currency, otherwise you will always be riding the elevator back and forth.
Charlie Munger once said that you should not be rich twice in life. In fact, 99% of people cannot be rich twice. To maintain your achievements, you need to diversify your investments. From a probability perspective, you cannot win the lottery twice in your life. After accumulating a certain amount of wealth, you need to consolidate your achievements. You must make a transition to reduce the rate of return and increase stability, otherwise it is easy to fall back to the starting point.
3. Don’t spread your losses
In fact, in the actual process, many of us do the opposite. First of all, we control a certain base position, and when we make a profit, we fall back to the support and increase our position, instead of constantly adding to our position after losing money. Otherwise, sooner or later you will be in a situation where you cannot move. Cryptocurrency speculation is originally a game that pursues high probability. Big profits and small losses are the essence. As long as the principal is there, there will always be opportunities.
There is a ceiling to rising prices, but no bottom to falling prices. Sometimes I myself am obsessed with a certain coin, and I keep buying more when it falls, but the results are not very good.
4. Withdraw cash appropriately and enjoy the fun of life.
"The cryptocurrency world is full of money, but life is a patchwork." Many times, we seem to have put the cart before the horse in terms of making money. We make money for a better life, but we mess up our lives because of making money. I even saw a guy who lost a lot of social and living skills because of his professional trading. When you make money, you should relax, reduce your desires, get in touch with life more, and your operations will be smoother. #美国5月核心PCE物价指数年率增幅创2021年3月以来新低 #Blast空投 #币安合约锦标赛 #以太坊ETF批准预期 #Meme板块普涨