In the volatile and risky world of cryptocurrencies, most people are obsessed with chasing short-term profits while ignoring the underlying logic of long-term gains—the traders who can truly stand firm in the market and continuously reap rewards are never relying on luck to bet on market trends, but rather adhering to three core principles: combating greed with rationality and avoiding risks with discipline.
Position management is the lifeline of trading and the bottom line for survival. The cryptocurrency market changes rapidly, with frequent surges and drops; blindly over-investing and going all in may seem like a way to achieve high returns, but it is equivalent to handing one's fate over to the market's gambling, where a single mistake can lead to total loss. "Life is precious, hands must be steady" is never about being conservative, but about respecting the market. Reasonable position allocation and maintaining a safety margin allow one to respond calmly during market fluctuations and avoid being swallowed by extreme movements, as preserving capital is essential for future profitability.
Setting stop-loss and take-profit levels creates a closed loop for profits; only what can be secured is real gain. Many traders become overly greedy during market uptrends, thinking about earning more and missing the opportunity to take profits, ultimately turning gains into losses; during downturns, they harbor false hopes and refuse to stop losses in time, leading to expanding losses. There are no absolute peaks and troughs in the market; "only what can be pocketed counts as money" is the most pragmatic trading wisdom. Setting clear stop-loss and take-profit lines and executing them strictly and decisively can lock in existing gains and avoid excessive risks, turning paper profits into tangible earnings and accumulating small victories into large ones.
Timing of entry is key to profitability; choosing the right moment is far more important than guessing the direction. The cryptocurrency market is never short of trending moves, but blindly following the trend can lead to passive positions even when the direction is correct, especially if the entry point is too high, potentially facing a pullback that traps one. "Timing is always more important than direction"; true professional traders never rush to enter the game but patiently observe market signals, waiting for the optimal entry points, entering precisely when the trend is clear and risks are manageable. This not only reduces holding costs but also increases the probability of profit, allowing them to approach their goals more quickly.
