Yes, because making money in the cryptocurrency market is the fastest industry!
Because the logic of making money in the cryptocurrency world is legal robbery.
In the cryptocurrency market, you can earn 50,000, 100,000, 200,000, or even 1 million in a day. This is a real possibility and the probability is much higher than in other traditional markets.
For example, starting from: 2021's Dogecoin, 2023's TRB, and this year's 2024's People.
Let's talk about this industry first. We must understand that we are working not to make money but to sell our labor. Salary is merely a means to entice you to sell your life.
The ultimate goal is not to make you earn more money but to make you pay more labor surplus value to create more value for the company. Do not exchange your health for money.
The purpose of working is to have money to enjoy a better life, not to exhaust your life for money. However, human nature is often irrational. Once you start comparing yourself to others, you will find yourself in a bottomless pit, and under the temptation of interests, some people are willing to gamble their lives.
Life is a pursuit of subjective feelings. In order to satisfy various desires, people develop obsessions with money as a medium of exchange based on social hierarchy. Perhaps it is only when life is threatened that one is willing to let go of class anxiety. Some people can enjoy life moderately, but many are already trapped by mortgages and loans and do not dare to enjoy it. For them, desperately making money is the only choice. The vested interests that create class concepts also promote consumerism.
In order to live a better life, people have to work hard to make money, but in the end, they can only be someone else's stepping stone.
The simplest and most foolish method can help you avoid losses.
This trick is common sense. As long as you have self-control, all traders can do it. The more losses you incur in cryptocurrency trading, the more cautious you should be in averaging down.
There are many traps in the cryptocurrency market. Many traders feel very anxious after being trapped.
Instead of thinking about exiting this time, you keep averaging down, hoping to lower your holding cost and recover your losses. This actually goes against common sense.
The process of falling is not something that can be reversed in a day or two. Averaging down is just self-comforting; the more anxious you are, the easier it is to make wrong moves, leading to regret. Why dare to average down at this position?
Two, trading discipline must be strictly enforced.
Many traders will formulate detailed plans before trading, such as deciding when to take action if the market falls to a certain level and at what price to buy specific coins. However, during trading, they are often easily influenced by stimuli and temptations. If you cannot even execute your own plan, you are not trading in the cryptocurrency market, but rather in a casino. Most actions taken at the moment of trading are likely to be wrong.
Three, do not trade frequently.
Many severely losing traders in the cryptocurrency market are making ultra-short trades, while those who treat trading as entertainment and have no sophisticated skills, just waiting patiently, will not incur significant losses.
Four, do not keep adding to your position; the market is not a place for reckless spending.
However, this is a very real depiction. Before you have the ability to make money, do not keep adding to your account, especially if it affects your standard of living.
Losses indicate that your trading system has flaws. At this time, you should not use more funds to fill the gap. Instead, you should reflect and calmly explore a set of effective methods before increasing your efforts.
Five, missing out won't incur losses, but chasing prices often results in cutting losses.
There is a common phenomenon in the market where the stocks you are interested in rise well when you do not participate. However, when you want to buy at a high position, it crashes immediately. The reason is that the company's operations have not changed; try to choose a median price as a reference. When at a low position, avoid standing guard at a high position.
Six, trading should follow the trend.
There are only three types of trends: upward trends, downward trends, and sideways trends.
Undoubtedly, in a downtrend, holding light positions or even being out of the market during an uptrend can significantly increase success rates.
Seven, do not touch anything that is still falling.
Buying the dip during a downtrend is like catching a flying knife with bare hands, putting yourself in danger. You must wait for a significant bullish signal to appear before slowly buying in; this is the right-side buying method. Blindly buying the dip will only leave you deeper in the hole.
Remembering the above common sense can help you avoid most losses. Many times, many technical patterns can be explained clearly with common sense; everyone is just blinded by the cryptocurrency market.
Digital currency investment advice for friends in the market.
1. Make good use of stop-loss.
When you trade, you should establish a tolerable loss range and make good use of stop-loss orders to avoid uncontrolled losses! The stop-loss range should be based on the account's financial situation. Even if you stop-loss, do not be disheartened because you have eliminated the risk of the market continuing to worsen and the loss expanding infinitely.
2. Do not rely solely on luck and intuition.
If you do not have a fixed trading method, your profits are likely to be random and based on luck. Such profits cannot last long. In other words, one day of bad luck can result in similar losses. Trading intuition is important, but relying solely on intuition for trading is risky. Understanding the reasons behind profits and developing your personal profit-making methods are crucial.
3. Act according to your ability.
Transaction volumes should be measured based on account balances, and avoid over-trading. Generally, do not let the risk of each trade exceed 20% of your account funds. Following this rule can effectively control risks; trading too many lots in one go is unwise and can easily lead to uncontrollable losses.
4. Trading capital should be sufficient.
The smaller your account balance, the greater the trading risk. Therefore, avoid letting your trading account be just enough for 100 points of fluctuation. Such account balances do not allow for a single mistake. However, even experienced traders can make wrong judgments.
5. Learn to fully execute trading strategies, do not find excuses to overturn existing decisions.
In order to avoid this fatal mistake, it is essential to remember a simple rule. Do not let risks exceed the previously set tolerable range. Once the loss reaches the originally set limit, do not hesitate, immediately close the position!
6. Mistakes are inevitable; learn the lessons and do not repeat the same mistakes.
Errors and losses are inevitable, do not blame yourself. The important thing is to learn from them and avoid making the same mistakes again. The faster you learn to accept losses and take lessons, the quicker the days of profit will come. Additionally, learn to control your emotions; do not be proud because you made money, nor be depressed because of losses. In trading, the less personal emotion you have, the clearer you can see the market situation and make the right decisions. Face gains and losses with a calm mindset. Understand that traders learn not from profits but from losses. When you understand the reasons behind each loss, it means you have taken another step towards profitability because you have found the right direction.
7. You are your biggest enemy.
The biggest enemy of traders is themselves: greed, impatience, uncontrolled emotions, lack of vigilance, excessive self-reliance, etc., can easily lead you to overlook market trends and make wrong trading decisions. Do not trade simply because you have not entered the market for a long time or because you are bored; there are no strict standards requiring you to trade a certain volume within a specific timeframe.
8. Follow the trend, do not go against it.
Saying is one thing, doing is another. Some people may understand every point mentioned in the above text, but when it comes to actual trading, problems arise because the mindset during trading is completely different from when reading this article. At this point, it is necessary to find a trustworthy teacher to help you with risk control so that you can trade without worries and effectively control risks.
The most important thing in investing is not how much you can earn at once, but whether you can control risk and achieve steady long-term profits. Before any operation, first look at the trend, find the right entry point after confirming the trend, and finally control the timing. Finding the right direction will minimize risk and maximize profit. Because of focus, one becomes a professional investor. Everyone has their own different experiences and stories. As long as you are good at summarizing, overcoming weaknesses in your character, whether greed or fear, and developing a correct investment mindset and good trading habits, one day you will leave behind your own wonderful investment story.
Since the Federal Reserve lowered interest rates, many newcomers who want to enter the cryptocurrency market have flooded in. The cryptocurrency market is a place where the fittest survive. The barrier to entry is low; everyone can enter the market, but not everyone can make money in it. If you plan to enter the cryptocurrency market, please remember that it is not a place for overnight wealth but a field that requires long-term accumulation and continuous learning.
Many people come to the cryptocurrency market with dreams of getting rich overnight, fantasizing about turning a few thousand into 1 million in capital. Of course, some people have succeeded, but in most cases, it can only be achieved through a 'rolling position' approach. Although rolling positions are theoretically feasible, it is not an easy path.
So how can small funds grow big?
Here, we must mention the power of compound interest. Imagine if you have a coin that doubles in value every day; after a month, its value will become astonishing. On the first day, it doubles, on the second day it doubles again, and so on. The final result will be astronomical. This is the power of compound interest. Even if starting with a small amount, after a long period of continuous doubling, it can grow to millions.
Currently, for friends who want to enter the market with small funds, I suggest you focus on big goals. Many people think that small funds should frequently engage in short-term trading to achieve rapid appreciation, but in fact, it is more suitable to do medium to long-term trading. Instead of focusing on earning small profits every day, you should aim for several times the growth in each trade, using multiples rather than units.
Regarding position, you must first understand how to diversify risks and not concentrate all your funds on a single trade.
You can divide your funds into three or four parts and only use one part for trading at a time. If you have 40,000, divide it into four parts and use 10,000 for trading. Next, you should use leverage appropriately.
Furthermore, it is necessary to adjust dynamically. If you incur losses, supplement the equivalent amount of funds from external sources; if you make a profit, appropriately withdraw some. No matter what, don't let yourself incur losses.
Finally, you should increase your position, but this must be done under the condition that you are already in profit. When your funds grow to a certain level, you can gradually increase the amount for each trade, but do not increase too much at once; transition slowly.
I believe that through proper position management and stable trading strategies, small funds can gradually achieve significant appreciation. The key is to patiently wait for the right opportunity and focus on the big goals of each trade, rather than small profits every day.
Of course, I have also faced liquidation before, but at that time, I still had spot profits to offset my losses. I don't believe that you haven't made a single penny from your spot holdings. My futures only accounted for 2% of my total funds, so no matter how much I lost, I wouldn't lose everything. The loss amount has always remained within my controllable range. In the end, I hope each of us can accumulate and burst forth, earning hundreds of thousands or millions.
Original content is not easy. I am Dahu, and I only share valuable content for retail investors every day! With a soul, there is a way to control coins. The above content is my experience after more than ten years of trial and error in the market. It is not easy to achieve today's achievements through continuous summarization and reflection. It seems simple, but achieving the unity of knowledge and action is not easy. Today I share this with everyone, hoping to help many cryptocurrency enthusiasts avoid detours!
