Brothers, have you noticed a pattern? In the cryptocurrency circle, those who make a lot of money and can go on for a long time are never the smartest or the most skilled at playing tricks, but rather the most stable and those who can control themselves the best!
A few days ago, I was chatting with an old brother in the circle. He has lived from 2017 to now, and his assets have multiplied dozens of times. He told me, 'The reason I can survive until now is not because of any profound technology, but because I take 'not losing money' as the first principle and use simple methods to counteract the uncertainty of the market.' I deeply agree with this statement.
Today, I will share the 'simple method' that both the old brother and I are using. These methods may seem ordinary, but they can help you steadily protect your principal in the ever-changing market and wait for the real opportunity:
First, refuse 'ineffective trading' and focus your energy on markets where you have confidence. Many people think that 'the more trades, the more opportunities,' but that’s not true. I have seen people make dozens of trades in a single day, only to find that their transaction fees exceeded their profits. My trading frequency is very low; sometimes I only make 1-2 trades a week, and only when the market is clear and I fully understand it. Ineffective trading wastes energy and can trap you in a vicious cycle of 'the more you trade, the more you lose, and the more you lose, the more you want to trade.' Be decisive and give it up!
Second, stop losses must be 'harsh' and 'early'! I have seen too many people who, due to 'reluctance', turn small losses into large disasters. Here’s a little trick of mine: set your stop-loss level before you enter a trade and stick to it rigorously; even if the market rebounds afterwards, do not regret it. You must understand that stop-losses cost you small amounts of money, but they protect your principal and your qualification to continue trading. Remember, in the cryptocurrency market, staying alive is always more important than making money!
Third, never go 'all in'; always leave yourself an exit. I know a brother who once lost everything by investing all his money in one cryptocurrency when a black swan event occurred, turning a million fortune into debt, and he is still working to pay it off. Going all in may seem thrilling, but it effectively hands over your destiny to the randomness of the market. I advise everyone, no matter how confident you are, to keep your position size under 50%, leaving some bullets to handle unexpected situations and to have the opportunity to add to your position during market corrections. Always keep control in your own hands.
Fourth, avoid 'money outside your understanding' and don’t let greed cloud your judgment. There are always some 'meme coins' in the market that skyrocket many times in a short period, attracting a lot of attention. But I never touch them because I know I don’t understand the logic behind their rise and I don't know how much risk is hidden behind them. Earning money within your understanding may be slower, but it is much steadier; making money outside your understanding may seem quick, but it actually steps on landmines. New traders must remember that greed is the root of losses; sticking to your circle of competence is the path to lasting success.
Fifth, learn to 'hit the emotional brakes' and stop as soon as you feel overwhelmed. The scariest thing in trading is not a bad market but losing control of your emotions. I have a rule: as soon as I have two consecutive losses, I immediately stop trading and take at least a day off; if I feel the urge to violate my trading plan due to greed or panic, I take a deep breath for 10 seconds and remind myself to 'not lose first, then make money.' Most people do not lose due to technical issues but due to emotional ones; if you can control your emotions, you have already won 80% of the battle.
The cryptocurrency market is a marathon, not a sprint to see who can run the fastest at any given moment, but rather a competition to see who can finish. Those who dream of 'getting rich overnight' often become the 'cannon fodder' of the market; meanwhile, those who make 'not losing money' their primary principle and proceed steadily often end up making a profit. Follow me @链上标哥 to avoid getting lost!
