1. Be absolutely honest and don’t deceive yourself or others.
The cryptocurrency world may be the place in the world where people get slapped in the face the fastest. It does not tolerate lies and self-deception. Only those who are honest enough can survive here.
If the cryptocurrency world has taught me anything, it is that behind honesty is courage, and courage is the noblest quality in the world. Many people’s lives are filled with deception, cunning, and lies. They have lost the courage to face themselves honestly, and have learned to cover up their mistakes and create a perfect explanation system of "everything is someone else's fault."
The first thing is to figure out why you buy cryptocurrency and why you sell it.
When you bought it, did you really understand its fundamentals, or was it because you read an article by a big V on Snowball, listened to the so-called "news" from a distant relative of your elementary school classmate, and saw that it had been rising so sharply recently that you were tempted to take a chance?
When you sell, is it because the fundamentals have changed, or because you feel sad and scared when the price drops, or because you feel panic when the price rises, or because you lose patience when you see other stocks rise more than you do?
This is actually a very basic question. Most people cannot make money in the cryptocurrency world because they cannot make it past the first level, even before it becomes a technical issue.
2. Know what you are doing at all times and form a system and style.
When you are able to face your own buying and selling logic honestly, you will need to further improve your trading system.
If you are a long-term investor, you look at the fundamentals. For you, the fundamentals are the only yardstick. If you are a trend investor, you look at the strength and trend. For you, the trend is the only yardstick.
3. Accept the shortcomings and risks of every system.
There is no perfect trading system in this world. Every trading system has its shortcomings and risks.
If you make long-term investments, you may feel extremely lonely, watching other popular sectors rise and rise every day. You may even face huge losses because of misjudging the fundamentals.
4. Patience is important.
If you are a long-term investor, and you are optimistic about a sector or several coins in the long term, but they have not risen or even fallen, while those sectors that you are not optimistic about are reaching new highs every day, what should you do at this time?
You are a trend investor, but the recent hot stocks have not been following the trend. Every time you see a breakthrough, you buy in, but the stock pulls back on the same day. At this time, do you still stick to your trading system?
5. There must be a position and stop-loss system.
Because there is no perfect trading system in the world, there must be a position control and stop-loss system.
Only rookies will face this situation when they buy a coin with full position and get 40% stuck. First of all, you should not buy with full position, and secondly, you should stop loss when the price drops.
6. Have the courage to accept defeat.
You are optimistic about a coin in the long term, and the price keeps falling. You firmly believe that the market is wrong, so you buy more as the price falls. In the end, it turns out that the market is right and you are wrong. The fundamentals of this coin have deteriorated, but you just don’t know it.
You shouldn't complain at this time. You guessed the wrong direction, which led to losses. You chose the coin yourself, and you made the decision to hold on to it and buy more as it fell. You should admit your mistake and stand at attention.
For most people, being able to do the above may not make them rich, but they are definitely not far from making money.
If you do not plan to leave the cryptocurrency circle in the next three years and are determined to make cryptocurrency trading your second career, you must read these 9 iron rules. They are all practical tips for making a living by cryptocurrency trading. I believe that after reading them, you will definitely save yourself many years of detours.
Finally, I have a few experiences to share with you!
First, understand the rules of your market.
But in the cryptocurrency market, with the handling fee, you have already lost the chance when you enter the market, and you must enlarge the cycle and fluctuation space to reduce the impact of the handling fee. Don't underestimate the handling fee, which is an important reason for the failure of the coin tossing theory.
Therefore, in the cryptocurrency market, my trading frequency has dropped to dozens of transactions a year. This is how I calculate the number of transactions: entering the warehouse in two batches counts as two transactions, rather than counting one entry and exit.
Second, find your own trading method and only take action at times that you are familiar with.
We have many ways to enter and exit the market, and there are so many indicators that can be used. But the more methods there are, the easier it is to make mistakes. The simpler and more single the method is, the more guaranteed the winning rate is. I remember when we were trained, the teacher didn't teach us any methods at all. He said that everyone has their own methods, and they can't be taught or learned. I am a mid-stream trader. I can't make a lot of money, but I never lose money. I have a stable rate of return every month because my trading method is to seek stability. Customers also prefer traders like me who can make stable profits and will not cause fatal blows to customers.
Some people like to follow trends and catch reversals. These are two different ways of thinking, and the chances of making mistakes are even greater. I am best at doing reversals, so I will only wait for my opportunities and ignore the others.
Third, buy low and sell high.
The simplest truth. This year, pork prices have increased, and everyone is raising pigs. Next year, pork prices will definitely fall. The market is cyclical, and prosperity will definitely follow a downturn. During the downturn in the market when everyone dares not enter, enter the warehouse in batches, raise pigs when pork is cheap, and sell them when pork prices increase. It's that simple.
Fourth, fund management.
If you want to fight a protracted war, don't invest all your funds in one go. If you want a quick victory, make full use of your funds.
Control your risk. Trading institutions all have risk control specialists who force liquidation. However, due to different trading methods, traders need to face different levels of losses. If you are doing trend trading and you lose 10%, then it is obviously wrong. If you are wrong, admit it and exit quickly. If you are doing reversal trading, 10% is normal.
That's about it. There's no point in saying more. All the good traders in the world have experienced the baptism of big winds and waves. I have traded everything you have done, and I have also traded things you haven't done. Every one of the 100,000 transactions is real and a summary of practical experience. In trading, it is always easier to make money than to keep it. It is a big problem if you can't put the profit in your pocket.
Technology is the basis of survival. It is better to teach a man to fish than to give him a fish. Making a small profit with a big return is the real charm of investment. Holding on to guaranteed profits is the foundation of financial management!
