Haonan will share with you my experience in cryptocurrency trading today. I hope it can be of some help to you.


  • Let's first summarize the reasons for losing money. Only by knowing why you lose money can you know where you can make money.

1. No stop loss, short-term becomes medium-term, medium-term becomes long-term

As an investment practitioner for many years, we are often asked, "What is the most common mistake investors make in the investment market?" My answer is not having an immediate and quick stop loss. Due to its leverage, both profits and losses are magnified in long-short two-way investment. The consequences of not stopping losses in time are often extremely serious. The same is true for the cryptocurrency market. We all know that our most valuable asset in the cryptocurrency market is our investment capital. Capital is like our ammunition on the battlefield. Without ammunition, we are doomed to fail. We must always pay attention to protecting our capital and not let losses expand indefinitely. Many people hope, pray, and dream of finding a perfect trading method that can make a complete profit without stop losses. In short, this perfect way of making money is impossible in any field. A successful trading method, like a successful life, is not achieved by avoiding losses, but by controlling losses well or badly.

Switching time frames is also a common mistake made by investors in the cryptocurrency market. The so-called switching time frames is also a disguised form of not stopping losses and not admitting mistakes. It happens like this: a cryptocurrency trader buys a contract with the purpose of obtaining a good short-term profit, but the market trend does not produce the effect he wants. Instead of selling within the time frame specified by the short-term, the investor decides to hold the contract and change it to a medium-term or long-term investment. This is just a reason not to stop losses. This method of switching time frames will inevitably cause disasters, and stopping losses is the only way for us to avoid disasters.



2. Not paying attention to fund management and not controlling positions

We use our hard-earned money to participate in cryptocurrency speculation, which is essentially no different from investing in a convenience store near your home. If the owner of a convenience store asks you to invest some money in his store, how would you consider whether to invest? How much should you invest? Would you make a quick decision like you do when speculating in cryptocurrency? The so-called fund management is to solve the problem of whether to invest and how much to invest.

The suggestion for beginners is to divide the funds into 6 parts and invest only one part at a time. As your experience gradually increases and the investment accuracy continues to improve, you can slowly increase your position, but at any time, the position of one product cannot exceed 50% of the total funds. Otherwise, once you make a mistake, it will be very difficult to turn things around. To give a simple example, if you have 100,000 yuan and lose 50% at one time, you will only have 50,000 yuan left. To make 100,000 yuan back from 50,000 yuan, you have to make 100% to achieve it. Anyone with a basic understanding of mathematics knows that 100% takes longer than 50%.

The fund management community in the United States once conducted a survey: The most important factor for a fund to win in the long run is not when and at what price it enters the market, but how much the fund buys. This is the term often mentioned in the investment community: fund management. If you do not pay attention to the management method of funds in cryptocurrency trading, you will never reap the final fruits of victory.

  • Personal experience summary

1. Plan your funds rationally for cryptocurrency trading so that you have food in your hands and will not panic!

2. Never place orders based on emotions. Do not be overwhelmed by profits and place orders blindly.

3. Develop a good trading plan and follow the market.



Use large positions to follow the trend, and small positions to follow the swings. Control the ratio yourself. When trading against the market, use a light position to stop loss. When trading with the trend, you need to hold on. There is no unprofitable cryptocurrency trading, only unprofitable operations. Cryptocurrency trading is a test of the correct mentality! I wish all cryptocurrency trading friends can find their own trading methods and make money steadily.



These are some of my personal investment views. Welcome to leave your views and opinions in the comment area. If you have good ideas and methods, we can learn and discuss together. I wish you all a new year with a new look. This year is your best. The cryptocurrency circle roars. This year is your best! !