I hope to be a beacon on your cryptocurrency trading journey, so you will never get lost!
1. No stop loss, short-term becomes medium-term, medium-term becomes long-term
As an investment practitioner for many years, we are often asked, "What is the most common mistake investors make in the investment market?" My case is that there is no immediate and rapid stop loss.
Due to its leverage effect, the profits and losses of long-short two-way investment are magnified. The consequences of not stopping losses in time are often extremely serious. The same is true for the cryptocurrency market. We all know that our most valuable asset in the cryptocurrency market is our investment capital. Capital is like our ammunition on the battlefield. Without ammunition, we are doomed to fail. We must always pay attention to protecting our capital and not let the loss expand infinitely.
Many people hope, pray, and dream of finding a perfect trading method that can make a complete profit without stop loss.
2. Not paying attention to fund management and not controlling positions
We use our hard-earned money to participate in cryptocurrency trading, which is no different from investing in a convenience store near your home. If the owner of a convenience store comes to you to invest some money in his store, how would you consider whether to invest or not? How much should you invest? Would you make a decision on a whim like you do when speculating in the market?
The so-called fund management is to solve the problem of whether to invest and how much to invest. The suggestion for novices is to divide the funds into 6 parts and invest only one part at a time. As your experience gradually increases and the investment accuracy continues to improve, you can slowly increase your position, but at any time, the position of a variety cannot exceed 50% of the total funds. Otherwise, once a mistake is made, it will be very difficult to turn over.
A survey was once conducted in the fund management industry in the United States: the most important thing for a fund that can win in the long run is not when and at what price to enter the market, but how much the fund buys. This is the term often mentioned in the investment industry: fund management.
If you do not pay attention to the management method of funds in currency speculation, you will never reap the final fruits of victory.
