The secrets that trading experts will never share! Trading for 7 years from £20,000 to £2 million.
As a veteran who has been through many challenges in the cryptocurrency circle for years, I have unwittingly engaged in trading for 7 years. Surviving in this field is indeed not easy! Initially, I experienced severe blows and endured multiple liquidations, at one point losing my direction, going through countless lonely nights, smoking one cigarette after another on the balcony. Now, with a net worth in the eight figures, this is the experience of growth!
One, go with the trend and trade only based on the primary trend!
For example: if the overall trend is bullish, then focus on going long; if the overall trend is bearish, then focus on going short.
Two, in an upward trend, buy on dips; in a downward trend, sell on rallies.
Three, after making a profit, allow the profit to grow sufficiently while keeping losses to a minimum.
Four, always set protective stop-losses to limit absolute losses.
Five, do not trade on a whim; have a planned approach.
Six, first establish a combat plan, then execute it firmly.
Seven, always control the regular position to four layers.
Eight, diversify investments, but be careful not to over-diversify to the point of detriment; you must master a balance.
Nine, the risk-reward ratio should be at least 3:1 to proceed.
Ten, if you are adopting a pyramid-style increase method, you must follow these principles:
A) Each subsequent layer must be smaller than the previous one.
B) You can only increase investment on profits.
C) You cannot increase investment on losses.
D) Set protective stop-loss orders at the breakeven point.
Eleven, when significant losses occur, never increase your margin, and do not gamble your entire fortune on a single trade.
Twelve, to prevent yourself from adding margin impulsively, you must cash out 75% of your capital and keep it in your bank account.
Thirteen, when realizing profits, you must first close the positions that are already at a loss.
Fourteen, those who do short-term trading can monitor the market daily; if not doing short-term trading, try to avoid staring at the screen all day—just check it once a day or every couple of days! When making decisions, always think during periods when you are not watching the market, and then make your decisions.
Fifteen, when studying trend directions, one should start with long-term research and then study short-term.
Sixteen, if you are going to make a trade, find the most precise entry and exit points on the same day.
Seventeen, try not to pay attention to so-called news from some media, as much of it is designed to mislead you.
Eighteen, the market always takes money from the majority to give to a minority; if you believe you are in the minority and your market analysis is holistic, then it is likely that most people's opinions differ from yours, but you must believe in yourself.
Nineteen, trading must be a gradual accumulation of learning and practice, ultimately leading to experience! Therefore, always maintain a humble attitude, continuously learn and explore, and do not indulge in it every day; spending just half an hour daily is sufficient.
Twenty, to truly learn the technology, one must learn comprehensively, but when finally formulating a trading system, it should be kept simple.