In short-term trading in the crypto market, many people fall into a misconception—frequent trading equals making money. In reality, the key to earning a lifetime's worth of money lies in establishing a comprehensive trading discipline system.
**First Principle: Profits Must Have a Bottom Line**
When you successfully bottom-fish a coin and it rises by more than 10%, alert signals should light up. If the price returns near your buy-in cost, don't hesitate—close the position immediately. When the gain reaches 20%, set a minimum defense line at 10% profit—unless you're sure this is a stage top, don't be greedy. At 30% gain, secure 15% profit before exiting. This operational framework allows profits to roll over automatically; even if you can't precisely identify the high point, you can still achieve stable gains.
**Second Principle: Cut Losses Decisively**
After building a position, if the price drops by 15% (this number can be adjusted based on personal risk tolerance), you must stop loss and exit immediately. Many failures stem from unwillingness to admit mistakes, turning small losses into larger ones. Before each position is built, set a stop-loss level—this is basic operation, not optional. Even if the price rebounds after selling, it only indicates that your entry point was wrong; incurring a loss is a tuition fee.
**Third Principle: Follow-up After Selling**
After selling a coin, if the price continues to decline but the fundamentals remain optimistic, you can buy back the same amount. Although this incurs additional transaction fees, it locks in profits and avoids missing out on potential rebounds. Use the stop-loss principle in conjunction—buy back if the price recovers to the selling price, and stop loss if it continues to fall. If the coin repeatedly oscillates within a certain range, consider changing your target.
Short-term trading emphasizes discipline; quick in and out is not reckless messing around, chasing hot spots is not blindly following the trend. Find the points that suit you, control risks well, and if the direction is correct, the rest is about execution.
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In short-term trading in the crypto market, many people fall into a misconception—frequent trading equals making money. In reality, the key to earning a lifetime's worth of money lies in establishing a comprehensive trading discipline system.
**First Principle: Profits Must Have a Bottom Line**
When you successfully bottom-fish a coin and it rises by more than 10%, alert signals should light up. If the price returns near your buy-in cost, don't hesitate—close the position immediately. When the gain reaches 20%, set a minimum defense line at 10% profit—unless you're sure this is a stage top, don't be greedy. At 30% gain, secure 15% profit before exiting. This operational framework allows profits to roll over automatically; even if you can't precisely identify the high point, you can still achieve stable gains.
**Second Principle: Cut Losses Decisively**
After building a position, if the price drops by 15% (this number can be adjusted based on personal risk tolerance), you must stop loss and exit immediately. Many failures stem from unwillingness to admit mistakes, turning small losses into larger ones. Before each position is built, set a stop-loss level—this is basic operation, not optional. Even if the price rebounds after selling, it only indicates that your entry point was wrong; incurring a loss is a tuition fee.
**Third Principle: Follow-up After Selling**
After selling a coin, if the price continues to decline but the fundamentals remain optimistic, you can buy back the same amount. Although this incurs additional transaction fees, it locks in profits and avoids missing out on potential rebounds. Use the stop-loss principle in conjunction—buy back if the price recovers to the selling price, and stop loss if it continues to fall. If the coin repeatedly oscillates within a certain range, consider changing your target.
Short-term trading emphasizes discipline; quick in and out is not reckless messing around, chasing hot spots is not blindly following the trend. Find the points that suit you, control risks well, and if the direction is correct, the rest is about execution.