Six iron rules that newbies in the cryptocurrency circle must know: Lay a good foundation for investment and avoid risks!
In the rapidly changing cryptocurrency circle, it is crucial to master the correct investment principles. The following are six iron rules that every novice investor should keep in mind to make your investment path more stable:
1. Follow the market trend
The trend of the market is irreversible. As an investor, you must first accept this fact, have the courage to admit mistakes and correct them at any time. No matter how the market fluctuates, going with the trend is the key to making a profit. In the trend, even the dealer cannot go against the trend, so you should stay calm.
2. Reduce frequent transactions
Investing is not gambling, and frequent entry and exit will only increase unnecessary risks. Like a hunter, wait for the best time to make a move and avoid arbitrary operations due to short-term market fluctuations. Patience is an important quality for successful investment.
3. Rationally look at technical indicators
Although technical indicators have their reference value, they also have lag. Many novices often miss the best time when they see the golden cross signal, so they should analyze rationally and do not rely solely on indicators and ignore the real situation of the market.
4. Forget the cost price and pay attention to market trends
Once you buy, you should focus on market changes instead of worrying about the purchase cost. Real profit comes from the judgment of the pattern. If the market is good, hold it. If there is a reversal, reduce the position decisively.
5. Invest with affordable funds
Investment must be based on the risk you can bear. Use spare money to invest and avoid borrowing. After mastering investment skills, gradually increase investment, so as to reduce the psychological burden caused by losses.
6. Regularly withdraw profits
Converting profits into actual returns is the goal of every investor. Regular withdrawals can keep you calm in market fluctuations and ensure that the gains you have obtained will not be affected by market changes. Only when you walk out of the casino can you be called a winner.
Following these iron laws can keep you rational and sober in your investment in the currency circle and reduce unnecessary risks. Investment is a marathon, not a sprint. Patience and strategy are the key to success. Follow Lao Lin to share more practical experience with you and help you move forward steadily in the currency circle!
