Five years of experience in the cryptocurrency space shared with everyone
The essence of trading is: stop-loss must be decisive, follow the trend, achieve small losses and large gains, ultimately realizing the goal of significant profit and loss. Specifically, we can focus on the following core aspects:
Following the trend: First, use a simple moving average system to determine the market's bullish and bearish trends. Generally speaking, go long when the price is above the moving average and short when it is below. This is the most basic method of trend judgment.
Opening positions and trial positions: Follow the trend and avoid counter-trend operations lightly. When entering the market, ensure that the risk-reward ratio is large enough. Specifically, this means entering at the bottom or early stage of the trend. If the direction is judged incorrectly, the loss should be minimal; but if the direction is correct, the profit will be substantial.
Stop-loss: Once the price breaks below a key support level or surpasses an important point, decisively stop-loss without harboring any luck. After a price pullback, you can look for opportunities to enter again, but do not hold onto the hope of “holding on for a while” or “averaging down the losses.”
Adding positions: Adding positions is the core of making big money. After a price has risen for a while, if there is a pullback to the support level or breaks above previous highs, consider adding positions. At this time, ensure that new stop-loss points are set, always maintaining the safety of the base position and only bearing the risk of the added position. If the price continues to rise after adding positions, continue to adjust the stop-loss and patiently wait for further pullback opportunities.
Taking profit: The most important point is not to take profit easily. The key to making money is being able to hold positions continuously, trying to avoid frequent exits. When taking profit, you can choose to sell in batches, but it is best to exit all at once, as this helps you grasp the highest probability of the top signal. Especially in right-side trading, floating profits often retrace, so be mentally prepared to accept the normal phenomenon of retracement. Do not be obsessed with pursuing the “peak,” but rather see the market signals clearly and exit rationally. Follow the public account: Little Bear on Currency, no waste on skirts.
As long as you can understand these basic principles and maintain consistent discipline in actual operations, you will find that making money is not difficult.