The path of cryptocurrency is fraught with danger; every moment could be life or death. How to judge the timing of entry is like a book that never ends. Only through continuous learning can we enrich our understanding and continue on this path without being eliminated by the market and without being sidelined. Today, let's talk about four principles on the cryptocurrency path. If you are confused, it might be worth taking some time to reflect.
There are only four core principles:
1. Capital preservation is paramount; the principal is life.
2. Maintain a stable mindset; position size determines emotion.
3. Only pursue high-certainty opportunities; do not chase, gamble, or act frequently.
4. The goal is compound interest, not a one-time reversal.
Common position sizing methods:
Divide funds into 4-5 equal parts to avoid putting everything on one bet.
Limit single trade losses to 1%-2% of the principal.
Only increase positions during profit; never add against the trend.
Never go all-in; always keep some funds in reserve.
Three practical points:
Small funds should focus on concentrated operations; do not spread across too many cryptocurrencies. $BTC a lifetime
If there are no opportunities, stay in cash; being in cash is also a trade.
Regularly review positions; first assess if the position size is reasonable, then check if the direction is correct.
In summary:
Skill determines how much you earn, and position size determines whether you can stay in the market. If you are still feeling your way in the dark, why not have a chat with me? #币圈生存法则
