Many people lose heavily in trading cryptocurrencies, not because they can't predict the market accurately, but because they lack trading discipline. To earn stable income over a lifetime, you must first break those bad habits of chasing quick profits.
Here are three core principles repeatedly validated in practical contract trading, essential for avoiding detours.
**First Principle: Lock in profits when available, don't expect to catch every bit of the rise**
When the price increases by more than 10%, consider taking partial profits. If it falls back to the purchase price, close the position entirely as your insurance. When earning 20%, set a bottom line to secure at least 10% profit; unless you're 100% sure this is the top of the phase, don't be greedy. When reaching 30%, be even more cautious—locking in 15% is already a good achievement. This way, even if your judgment is wrong, your profits can still grow steadily. The trend of often follows this pattern—rapid surges followed by pullbacks; those who lock in profits early make money, while those hoping for the last wave often get trapped.
**Second Principle: Cut losses decisively, procrastination only worsens the wound**
When losses reach 15% (this ratio can be adjusted based on your risk tolerance), you should exit decisively. Timely stop-loss is crucial; stories of small losses turning into huge ones happen every day in the crypto world. Even if there's a rebound later, don't regret it—this indicates your entry point was flawed, and mistakes come with tuition fees. Every time you open a position, set a stop-loss. If you don't have this habit, I advise you not to trade contracts. Many liquidations happen because of this.
**Third Principle: If you miss the sell, buy back; the cost of missing out is more expensive than transaction fees**
Coins like @E1@ are very volatile. If you sell and the price doesn't fall much but then rises again, you should unconditionally buy back the same amount. Paying a bit more in fees isn't a loss; avoiding the trap of missing the move is key. Using stop-loss in conjunction works best: buy back when the price returns to the original level, and stop out if it falls further; if the price jumps unpredictably, change your entry point or simply watch and wait.
Short-term trading is about principles and execution. Fast in and out isn't reckless; chasing hot spots requires direction. Taking profits when the market looks good isn't cowardice, and staying on the sidelines can be a positive choice. Instead of stressing over buying at the lowest and selling at the highest, it's better to steadily earn controllable profits. Only then can you survive long-term in the crypto space.