Once again ADA, waking up to find my account increased by over fifty thousand. $ADA
Looking back on my eight years of trading cryptocurrencies, the market in 2017 was nothing short of crazy.
At that time, I focused on a so-called "altcoin" called ADA, starting to buy in slowly at $0.03, and unexpectedly, three months later, the price soared to $1.2, with my account profit nearly 40 times, it felt like winning the lottery. $XRP
But later ADA fell all the way down, back to $0.2, and almost all the profits disappeared, the dream of a Porsche turned into a mirage, leaving only the reality of a second-hand BYD. $SOL
That experience made me deeply realize: in the crypto world, buying right is just the beginning, selling right is the key.
Now, I will share a profit-taking and stop-loss strategy I have summarized, especially suitable for ordinary people who do not have time to monitor the market.
First, let's talk about profit-taking. I use a "ladder profit-taking method".
For example, if a coin rises from $1 to $2, I first sell 30% of the principal, so no matter how it fluctuates afterwards, the cost has been recovered. When it rises to $3, I sell another 30%, and set a trailing stop for the remaining 40%, selling everything if the price retraces 15% from the high.
This way, I can catch the main upward trend without getting left with nothing in the end.
Now, regarding stop-loss, my principle is that a single loss should not exceed 5% of the principal. For example, if I build a position with $10,000, if the floating loss reaches $500, I must stop-loss.
I will set up a "conditional order" in advance, and immediately place a stop-loss order at -10% after buying, as if I have taken out insurance on the trade. Don't be afraid of missing out on opportunities; there are plenty of opportunities in the crypto world, but once the principal is gone, it’s really gone.
I also discovered a counterintuitive trick: lowering the profit target. Many people always want to sell at the highest point, but the result is often counterproductive. Now, I only aim to catch part of the fish, leaving the tail for others, and this year I've instead achieved a stable profit of 35%.
Lastly, a heartfelt truth: after ten years of trading cryptocurrencies, I've seen too many myths of overnight wealth, but more people exhaust their capital in repeated fluctuations.
Those who can truly take away profits are those who strictly adhere to discipline. Once I stopped-loss and the coin price doubled again, my friend laughed at me for being timid, but I have no regrets because three months later, that coin went to zero. In the crypto world, surviving longer is much more important than earning quickly.
