Let's talk about one of the most important concepts in trading - stop loss.

Many people face losses when
Most people can manage to stop loss within a small loss of 20%, but once the loss exceeds 50%, the default assumption is to increase the position, because a stop loss has already incurred a loss of half, and the subconscious mind finds it hard to accept the stop loss. At this point, the idea of increasing the position tends to overshadow the mindset of stopping loss.
This is why many people in the crypto circle can drop to 80%-95% close to zero. It's not that they can't understand the trend, but rather that after incurring too many losses, they start to resist the trend psychologically. Losing too much makes it easy to set stop loss at the lowest position, leading to a mindset of taking chances, and ultimately, they end up losing more and more.
If you lose, just hold on; if you make a little profit, you rush to sell, not looking at the trend or the trading volume, only fixated on the profit and loss ratio in your account. And the result? You lose terribly when you're in the red and earn pitifully when you're in the green. It should be the opposite: hold on when you're in profit, and quickly stop loss when you're in loss.
My take profit and stop loss principle is very simple: take profit at 15% gain, and if it retraces to 10%, I will take profit; if it continues to rise, I will continue to hold and let the profit run. Conversely, if there is a decline after buying, I will decisively stop loss if the loss exceeds 5%.
As long as you can take a profit of 10% each time and control your stop loss at 5%, even if you operate 100 times with a win rate of only 50%, your earnings can reach 300%. Is it difficult? The difficulty is not in the method, but in whether you can overcome your own greed and fear. #加密市场回调