The knives in the crypto world only cut two types of people: the greedy and the defiant.
There are always people who ask me why, despite being on the right track, I can't make money? The answer is simple: trading cryptocurrencies isn't about who is smarter, but about who makes fewer mistakes. The following seven rules that I have learned with real money might help you avoid years of detours.
1. Survival comes first, making money comes second.
In this market, surviving is a hundred times more important than making quick money. This means that before every trade, you should first consider not how much you can earn, but how much you can afford to lose. Invest with spare money, leave yourself an escape route, and never let yourself fall into a situation where one mistake leads to irreversible consequences.
2. Stop-loss is always correct, holding on stubbornly is always wrong
This is the most brutal yet important lesson. Losing trades are like a wrong relationship; the sooner you cut it off, the smaller the cost. Set a stop-loss line and execute it decisively; losing small amounts is to preserve the capital that can earn big profits. Remember, a stop-loss is an active cost of trading, while stubbornly holding is a passive wait for a death sentence.
3. You can kick someone when they're down, but you must never try to stop a chariot with your arm
The trend is your friend but can also be your fiercest enemy. Never go against the trend, and never average down in a downtrend—it's like trying to catch a falling knife. The correct approach is to look for buying points in an uptrend and remain cautious in a downtrend, or even short in line with the trend.
4. Don't predict the market; assess the current situation
The market is always right; your predictions are worthless. Experts never attempt to guess tops and bottoms, but instead formulate strategies based on current market signals. Follow in when prices break key resistance levels and exit when they break important support levels. Trading rules are more important than predictions; this is the true secret to stable profits.
5. Cut losses, let profits run
Be ruthless with losing trades and patient with winning trades. Losing small amounts is to preserve the capital that can earn big profits. Once you catch the trend, you must dare to let profits grow fully. The worst thing is to run away after making a small profit while stubbornly holding on to a significant loss; this completely contradicts the fundamental logic of profitability.
6. Discipline and mindset are more important than technique
How far you can go in the cryptocurrency market does not depend on how great your technical analysis is, but on how stable your emotional control is. Don't be overly confident when making profits, and don't rush to recover losses; strictly follow the trading system and overcome human greed and fear. In the cryptocurrency market, a stable mindset itself is a core competitiveness.
7. Plan your trades, trade your plan
Any method can be profitable if fixed, the key is consistency. Clearly define entry points, stop-loss points, take-profit points, and position sizes before trading, and then execute like a robot. The most dangerous behavior is to act impulsively in the market, being led by price fluctuations, which often marks the beginning of losses.
The cryptocurrency market never lacks celebrities, but it lacks longevity. These rules seem simple, but those who truly implement them are rare. It is these individuals who ultimately become the minority that really makes money in the market.$SOL $BNB #比特币流动性 #美联储回购协议计划
