Brothers, I'm not going to lecture everyone on grand principles today; instead, I want to share my real experiences. Eight years ago, when I first entered the crypto space, I was a complete 'newbie'. With a burst of enthusiasm, I invested all the 500,000 I had saved over several years into it, even adding 2x leverage. As a result, in less than three months, I lost it all and was left with only 80,000. During that time, I was completely devastated; I couldn't eat or sleep, and I even thought about giving up. Later, I reflected deeply and started to analyze my problems, realizing that the root of all my losses was my lack of risk control awareness. After years of exploration and summarization, I developed four risk control habits. It is these four habits that helped me turn a loss of 500,000 into stable profits over time. Today, I will share these four habits with all of you without reservation!
The first habit: Conduct a 'risk assessment' before the market opens every day. Now, every morning before the market opens, I spend 30 minutes on risk assessment, focusing on three aspects: first, the macro environment, such as the US dollar index, inflation data, regulatory dynamics, etc., to judge whether today's overall market risk is high or low; second, industry news, such as whether there are major positives or negatives in certain sectors or important announcements from mainstream coins; third, technical analysis, checking the candlestick patterns, support levels, and resistance levels of major currencies. Based on this analysis, I determine whether today's strategy is 'aggressive', 'defensive', or 'wait-and-see'. For instance, if there is significant negative news today, I would choose a defensive strategy, reduce my position, or even liquidate and wait; if both the macro environment and technical analysis are favorable, I would choose an aggressive strategy and increase my position appropriately.
The second habit: Write a 'trading log' for every transaction. I believe this is one of the most effective risk control methods. Every time I make a trade, I write down the trading time, entry price, stop-loss price, take-profit price, position size, and reasons for the trade. After the trade is complete, I summarize the successes and failures of that trade. For example, if it was profitable, I analyze whether it was due to accurate market judgment or just luck; if it resulted in a loss, I evaluate whether the stop-loss was set unreasonably or if my mindset was flawed. By keeping a trading log, I can continuously summarize experiences and lessons learned, avoiding repeating the same mistakes. Now my trading log has become quite thick, and whenever I encounter confusion, I flip through it to find answers.
The third habit: Strictly adhere to 'trading discipline', and never act emotionally. This is the most challenging aspect for one’s mindset and is something many people struggle with. I lost 500,000 previously, largely due to emotional trading—chasing prices when they rise and panic selling when they fall, completely being led by market emotions. Later, I established strict trading disciplines for myself, such as 'not chasing highs, not bottom fishing, not entering without a stop-loss, and not heavily investing in a single asset', and I posted these rules on my computer screen to remind myself at all times. To avoid emotional trading, I also set a rule for myself that the number of trades per day should not exceed three, and I must take a 10-minute break after each trade to calm down before proceeding with the next operation. Now, even when encountering significant market fluctuations, I can maintain calm and strictly follow the rules.
The fourth habit: Regularly 'review and summarize' to optimize risk control strategies. The market is constantly changing, and strategies that were effective before may not work after a while, so regular reviews and summaries are very important. I spend two hours each week reviewing all trades from the past week, calculating profits and losses, and analyzing which strategies were effective and which needed optimization. For example, I found that in a bull market, trailing stops work very well, but in a bear market, they can easily get 'swept out', so I adjusted my strategy to use 'fixed stop-loss + light positions' during bear markets. Additionally, I regularly learn new risk control methods, such as reading professional books and attending industry seminars, to continuously improve my skills.
In fact, risk control is not achieved overnight, but is a continuous process of learning, practicing, and optimizing. It took me five years to go from a loss of 500,000 to stable profits, during which I took many detours and paid many tuition fees. But I want to say that as long as you persist in developing good risk control habits and do not give up or get discouraged, there will always be opportunities to establish yourself in this market. Many people think that trading cryptocurrencies relies on luck, but in reality, long-term profits depend on strength and discipline, and risk control is the core of that strength.
That's all for today's sharing. I hope my experiences can provide some insights for everyone. If you find it useful, please follow me; I will share my trading log template with you later and will also guide you through weekly reviews to help you develop good trading habits. Have you developed any effective risk control habits while trading cryptocurrencies? If you currently feel helpless or confused in trading and want to learn more about the cryptocurrency field and cutting-edge information, follow me @标哥说币
