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After ten years of struggling in the Crypto Assets market, I suffered a 70% loss in the first three years, experiencing unimaginable pressure and confusion. However, through continuous learning and reflection, I finally discovered the secret to sustained profitability. Next, I will share ten valuable insights, hoping to provide some inspiration for those who aspire to participate in Crypto Assets trading in the long term.
First, it is crucial to overcome the common psychological misconceptions of retail investors. Most retail investors tend to hold on during losses while rushing to cash out as soon as there is a small profit. This approach ignores the importance of market trends and trading volume, often leading to ever-expanding losses while profits remain very limited. The correct practice is to maintain confidence and continue holding when investments start to profit, maximizing gains; conversely, once a loss occurs, one should decisively cut losses.
Specifically, my trading strategy is as follows: when profits reach 15%, I choose to take profits if it falls back to 10%; if it continues to rise, I hold on to maximize returns. If the price drops after buying, I decisively cut losses once the loss exceeds 5% of the principal. This strategy can achieve considerable total returns even with a 50% win rate after 100 trades.
Secondly, paying attention to volume analysis can make your judgments more accurate. I believe that volume is one of the most important indicators in the Crypto Assets market, and mastering its analytical skills can help you surpass most traders. For example, when the volume is significantly below 50% of the usual, if the price can still reach new highs, it usually means that the main funds are highly controlled, eliminating the possibility of offloading. If this happens to be in an upward channel, it is even more likely to cultivate rich profit opportunities.
Overall, successful Crypto Assets investment requires continuous learning and strategy adjustment, overcoming the psychology of greed and fear, and focusing on the analysis of market indicators. Only by internalizing these principles can one achieve stable profits in this market full of opportunities and challenges.