❶Establish a stable trading mood
Stable trading emotions are a prerequisite for participating in the market. If you want both bull and bear markets to become the red flag on the top of the highest mountain, you not only need strong logical thinking and perfect cognition, but also stable emotions to remain calm in the face of honor or disgrace!
❷Establish strict risk management
Risk management includes
First: Balance the currencies. Hold more currencies to hedge risks and prevent explosions. Those who hold only one currency will bleed every day.
Second: Assess the balance between real economic needs and crypto assets;
People need to eat, so it is impossible to pursue profit maximization;
Third: prevent the risk of a sharp drop in extreme situations, especially the risk of a sharp drop in the benchmark;
Fourth: Prevent exchange and wallet risks, diversify holdings, and avoid exchange explosions;
Fifth: Don’t invest heavily in copycat stocks. You will get rich quickly but also die quickly.
❸Position allocation
Long-term ok and hardware wallet, short-term Binance, short-term proportion can be about two-layer positions, one layer of positions with stop loss, one layer of positions without stop loss
(The Cognitive Society provides a demonstration of ideas, not an answer, and should be adjusted based on personal tolerance)
❹Strict strategy to achieve both offense and defense
For example, dydx3, 2.8, 2.6, 2.4, 2.2, the average cost of fixed investment is 2.6, now it is 3.1, cut it in half, and keep the other half, and continue to invest in it when it plummets
For example, if there is a sharp drop in the high position, take back half, keep the other half for a sharp drop, and continue to make money if there is a sharp rise. You can make more money if there is a sharp drop and retracement.
❺You should adapt to the market, not the market to adapt to you
A few days ago, a big investor who doesn’t go online once a year asked me eagerly whether I wanted to buy Bitcoin now?
When the market plummeted in 2022 and 2023, he didn't have time to go online for a minute for a month.
He disdains this industry and feels it is unreliable.
His mind is not in this industry
But he is eager to make a lot of money in this industry
It is difficult to do business in the real world, and people are eager to get rich easily through cryptocurrencies.
I don't want to spend time settling down, I just want to get rich overnight
Do you think it is necessary to buy more Bitcoin at 42,000?
If you don’t chase high prices, do you think you are useless? You don’t even know where the lowest point is?
Will not chasing high prices and missing out on the bull market affect his eagerness to get rich?
