How to avoid getting cut in the crypto space and make money?
As someone who has been through it, getting cut while trading cryptocurrencies is normal. Only by dancing with the market makers, having solid skills and methods, and a mature trading system can one succeed.
Now, I will share how I avoid getting cut in the crypto space and make money:
After more than a decade of struggles in the crypto space, I have summarized these 10 trading principles to share with everyone. I hope they are helpful! Worth keeping.
1. Never trade out of revenge. After completing a trade, whether in profit or loss, I firmly adhere to my rules. I close the market charts and do not reopen them within 24 hours. This prevents me from engaging in revenge trading. There is always a reason for closing a trade, which means there is no reason to re-enter immediately. Revenge trading is a major cause of losses for emotional traders. This is especially critical when trading Bitcoin with leverage. Cryptocurrency traders watch Bitcoin charts for many hours daily, making it difficult to step away and not re-enter after a loss.
2. Avoid trading cryptocurrencies on weekends. Weekends are for relaxation and entertainment; one should stay away from the charts and rest well.
3. Only trade during specific time periods. I can only trade when I am fully focused at my desk. The cryptocurrency market operates year-round, so it's impossible to keep a constant watch. I set trading periods for myself, and I only check the market during those times. This avoids the impulse to constantly engage with the market and my phone, allowing me to spend time with family and do other meaningful things.
4. Never become emotionally attached to assets. If you fall in love with the assets or investments you are trading, it can lead to poor decision-making. Emotionless trading means decisions are not influenced by subjective factors. People tend to emotionally favor certain altcoins, teams, or projects. This is fine for investors but can be a potential disaster for traders.
5. Keep it simple and stupid. This is one of my firm rules. When I was a beginner, I would check multiple indicators, news sources, and patterns to try to find the optimal trading method. This often led to over-analysis. When I see a trading opportunity on the chart, understanding stop-loss and position size is far more important than timing entries and exits.
6. Trade only when in a calm mindset. This is crucial. When I feel angry, tired, or stressed, I do not trade. I must apply my best judgment when I am calm. Life outside of trading is key to maintaining the right mindset. Spending time with family and friends, reading, and participating in sports are all essential to my trading success.
7. Keep a journal. Journaling is boring and tedious. However, it is important because it helps us avoid making the same mistakes twice. I must remind myself to slow down, stop looking at the charts, and take the time to record as much information about my trades as possible.
8. Don't blindly chase dips. Trying to perfectly catch the bottom is unwise; one should wait for more secure trend change confirmation signals. Trading with the trend is much less risky than trying to buy low and sell high.
9. Don't overtrade. I've found that the fewer times I trade, the more money I make. Even when there are many opportunities in the market, I try to keep the number of open trades to less than 3. Managing multiple trades is much more difficult because if every trade goes against you at the same time, you could incur significant losses.
