Rule 1: Never buy too many stocks at a high price
When the market is going up, everyone wants to make more money, so many people can't help but add more positions. But veterans know that the market will never go the way you imagine. Behind every crazy rise, there is a big pit waiting for those who chase high prices to jump in. Remember, heavy positions chasing high prices is equivalent to gambling with your hard-earned money, and the result is often that the market teaches you a lesson.
Rule 2: When you make money, you must put it in your pocket as soon as possible
This iron rule seems simple, but many people often forget it. The most feared thing about cryptocurrency trading is greed. People always think "it will go up a little more", but they accidentally give up their profits or even lose their principal. The essence of cryptocurrency trading is to run when you make money, and don't think about making the last penny. Only by putting money in your pocket can you gain a firm foothold in the market.
Rule 3: Don’t resist
Losses are not scary, the scariest thing is to hold on to them. Many people have experienced this situation: after buying, the market goes against them, and they think "it will always go back up", but they end up holding on to them more and more, and finally they lose a lot of money. This iron rule tells us that only by decisively stopping losses when we lose money can we keep our capital and continue to fight. The market is unsympathetic, and if you don't stop losses, it will make you lose more.
Rule 4: Invest your spare money, never borrow
The funds used for cryptocurrency trading must be idle money. Never borrow money to trade cryptocurrencies. Why? Because borrowed money puts you under invisible pressure. Every market fluctuation may make you insomniac, anxious, and mentally broken. Once the mentality breaks, it is easy to make mistakes. Remember, only by keeping a stable mentality can you keep your income stable, and the premise of keeping a stable mentality is that the funds you invest are within your tolerance.
Article 5: Be optimistic in the long term and don’t act blindly in the short term
The cryptocurrency market is highly volatile, and it is common for the price to rise today and fall tomorrow. As a top cryptocurrency trader, the key is to have a long-term vision. If you have identified a project, don't be scared by short-term fluctuations. Be optimistic about its future, and don't worry about short-term ups and downs. Unless there is a clear signal of peaking, you need to consider adjusting operations. Long-term planning is the key to most wealth accumulation.
Cryptocurrency trading is not about luck, but about discipline. Each of these five iron laws is a summary of hard-earned lessons. Only by keeping them in mind can you find your own rhythm in the fluctuations of the market and win long-term victory.
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