One: Learn to take profits and cut losses
The market changes rapidly; you must learn to take profits and cut losses. It sounds difficult, but it’s not. Taking profits controls your greed: a coin will not rise indefinitely, nor will it fall forever; the market has cycles. Therefore, taking profits is especially important—don’t always get caught up in closing positions too early and missing out on profits later.
You must remember: the money in the cryptocurrency market is endless, but the money in your account can be lost completely.
Cutting losses means giving up sunk costs, which is indeed very difficult. Don't always think 'if I just hold on a bit longer, the market will reverse'; never have such luck. If you're wrong, you're wrong; admit it and stand tall when you get hit. Although cutting off a limb to survive is painful, it can truly save your life.
Two: Do not trade frequently
A major taboo! Don't keep thinking about making money on both sides; wake up, very few people can achieve that. Just being able to profit from one direction is already quite good.
Additionally, the fees for high-leverage contracts are very damaging; as soon as you open a position, you might lose 1-2 points. You must ensure that this trade can make a profit; otherwise, all your earnings will go to the market as fees.
Three: Learn to stay on the sidelines
When you don't understand the market, don’t open positions recklessly. You might say: it feels terrible to miss out on a rally. So I ask you: which is worse, missing out or losing money?
If you don’t understand the direction and open positions blindly, it’s essentially gambling.
Trading is about probabilistic advantage; no one can accurately predict ups and downs, only judge the most probable direction.
Four: Take gradual steps
Don’t think about getting rich overnight; you can’t rush to eat hot tofu!
The cryptocurrency market is not a place that will make you rich overnight. For example: if you use 100 U as capital and leverage 10 times, you have a position of 1000 U; if it rises by 1 point, you earn 10 U, and if it rises by 2 points, that's 20 U, just enough for a breakfast.
Now, working in a factory earns you 15 bucks an hour, and if you consistently place three to four orders a day with a win rate of 60-70%, isn't that more comfortable than working?
Five: Never go all in with heavy positions
Never go all in with heavy positions!
The market was originally moving as expected, but suddenly a significant news event comes crashing down, causing a major reversal, and if you haven’t set a stop-loss, then it’s all over.
So you must operate with light positions and prioritize stability. The cryptocurrency market doesn’t lack trends or opportunities; the next ten to twenty years will be the same, so don't be fooled by the illusions in front of you.
Six: You must align your actions with your knowledge
This is indeed difficult; I sometimes struggle with it too. Human weaknesses are hard to overcome.
Initially, I didn’t understand any of this, casually opening positions without any plan.
But over time, you’ll find that the cryptocurrency market can really change your fate.
The premise is that you need to have:
An attitude that surpasses ordinary people
The courage to fight back
Decisiveness in cutting losses
The fierce determination of survival at all costs
Otherwise, you'll never be part of that '1% elite'.
