I have traded in the market for 10 years, going from huge losses to great wealth! I have summarized 10 short trading maxims that are brief yet practical. If
If you want to survive long-term in the crypto space, this article is worth reading carefully. Success is never accidental; every successful person has gone through numerous trials and has walked step by step. It cannot be denied that some people are born geniuses, but such individuals are very few, neither you nor I are among them. Most people gradually approach perfection after experiencing failures. It is precisely these experiences of failure that yield insights and lessons that those taking shortcuts cannot comprehend.
A common saying is that there are no good opportunities; in fact, opportunities are reserved for those who are prepared. Only when the opportunity arises can you seize it firmly. Waiting idly, like waiting for a rabbit to come out of its hole, will lead to either missing the opportunity or failing to grasp it when it truly appears.
Big reveal in the crypto space: How to profit steadily and avoid risks.
Can rolling positions double your investment?
In the cryptocurrency market, many investors hold dreams of getting rich overnight and blindly follow trends, often getting trapped at high prices and sinking into losses. As an experienced investor, I want to tell you that those who can achieve stable profits in the crypto space are not the speculators seeking short-term high profits, but those with rational thinking and a steady approach. Today, I will share how to invest steadily in the crypto space, using rolling position strategies and reasonable position management to achieve long-term stable profits.
And the mindset of investing in the crypto space: control your emotions and avoid greed.
You must also have good mindset control. Many investors, due to emotional fluctuations, often make irrational decisions during market volatility. For example, they impulsively chase prices when they see a surge and panic-sell when prices drop.
This emotional trading is one of the main reasons retail investors incur losses.
As an investor, you need to remain calm and rational. Especially when faced with significant market fluctuations, you must adhere firmly to your investment strategy and avoid blindly chasing highs and cutting losses. Do not be influenced by short-term price fluctuations; instead, judge the timing of buying and selling from the perspective of long-term market trends.
Position management: Reduce risks and ensure steady profits.
Position management is one of the most important parts of investing. Especially in the crypto space, where market fluctuations are intense, reasonable position management can help you retain capital during market corrections and enable quick profits when prices rise. Below are my personal suggestions for position management:
1. Manage positions to reduce risks.
The core principle of position management is to diversify risks and not to invest all funds in a single trade. If you have 30,000 USDT capital, you can divide it as follows:
Divide the funds into three parts, with each part being 10,000 USDT.
Use one part of the funds for each trade. This way, even if there are losses, your total capital will not be significantly affected. Specific leverage settings: For major coins (like Bitcoin), use no more than 10x leverage; for altcoins, leverage should not exceed 5x.
2. Operations for adding and reducing positions.
When in profit, consider adding positions, especially when the market trend is clear and favorable. However, before adding positions, be sure to ensure that your costs have been lowered to avoid the risk of blindly increasing positions. One misconception to avoid is that floating profits are not a reason for unlimited position increases; you must ensure that the market trend continues to develop in a favorable direction.
3. Set stop-loss and take-profit levels to avoid excessive greed.
Setting stop-loss and take-profit levels is a basic operation that every investor needs to establish. If the stop-loss point is not set properly, you may miss the opportunity to exit due to minor fluctuations, leading to significant losses; an unreasonable take-profit point may cause you to miss profits when the price reverses. A reasonable stop-loss and take-profit strategy can help protect your profits and avoid emotional interference from chasing highs and cutting losses.
Three,
Rolling position strategy: Capturing the market's 'big opportunities.'
The rolling position strategy achieves the compounding effect by increasing positions in a major trend. Many investors misunderstand rolling positions as blindly adding positions, but in reality, rolling positions are a highly strategic approach that emphasizes timing and strategy. It is only appropriate to roll positions when the market trend is clear and the signals are strong.
Three major applicable scenarios for rolling positions:
1. Choosing a direction after a long sideways trend: When the market enters a phase of sideways consolidation, with reduced price volatility, it usually signals an upcoming breakout. If the market breaks through key support levels above or below, rolling positions can be executed.
2. Corrections after a significant rise in a bull market: Corrections in a bull market often present good buying opportunities. When a 20%-30% correction occurs after a significant rise, it is suitable to increase positions and wait for the market to recover.
3. After breaking through key resistance levels: When the market breaks through long-term key resistance or support levels, it usually indicates that the price will enter a new uptrend. At this point, rolling positions can yield significant returns.
Specific methods for rolling positions:
Adding positions with floating profits: If you have floating profits after a market rise, you may consider adding positions, but the premise is that you have already lowered your holding costs to ensure risk minimization.
Base position + T trading rolling positions: Divide funds into two parts, keeping one part as a base position and the other for high-selling and low-buying rolling position operations. This not only reduces losses but also allows for profit during fluctuations.
Four, Risk management: Stay calm amidst volatility.
In the cryptocurrency market, risk control is key to determining long-term profitability. The market's high volatility often affects investors' emotions, leading to erroneous decisions. Therefore, maintaining a good risk control mechanism is essential.
1. Establishing risk tolerance:
Mental preparation: The drawdowns in the cryptocurrency market are usually large, so you must be psychologically prepared to withstand a 30%-50% drawdown. Only with a stable mindset can you maximize profits amidst market fluctuations.
Diversify investments: Do not concentrate all funds in a single trade. Diversifying investments can effectively reduce the risks brought by single market fluctuations.
2. Avoid excessive speculation with high leverage:
The high leverage characteristics of the cryptocurrency market can easily lead investors to have an overly speculative mindset, but high leverage carries significant risks. When trading with leverage, you must act within your means, control the leverage ratio reasonably, and ensure that risks are manageable.
Five, Conclusion: Rational investment, stay away from the fantasy of 'getting rich quick.'
Through reasonable position management, rolling position strategies, setting stop-loss and take-profit levels, and analyzing market trends, you can achieve stable profits in the cryptocurrency market. However, remember that the crypto space is not a place for getting rich overnight. Investors should remain rational, avoid blindly pursuing short-term high profits, and focus on long-term planning. The market's high volatility and short-term temptations may lead you to lose your rationality, but only by maintaining a calm mindset and using scientific investment methods can you navigate steadily through this turbulent market.
