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Many people blame their failure in trading cryptocurrencies on not holding on until the end, but the secret to consistent profits is not about precisely catching every market wave. Instead, it’s about building a long-term trading system with positive expected value, then strictly following it like executing a program.
This system must be a complete closed loop. The four questions—"What to do, When to do it, How much to invest, How to exit"—must all be addressed without omission. Standardizing and systematizing analysis, judgment, stop-loss, and review processes can maximize the removal of emotions and impulsive decisions from trading.
**How to get started? Clarify the trading signals.** Opening and closing positions must have clear, measurable standards—quantitative criteria that are tangible, not just gut feelings like "I feel it will go up," which should be discarded. For example, a simple trend-following logic: when a candlestick volume breakout occurs (trading volume exceeds the 5-day average by more than 20%) and breaks the 50-day high, and RSI is below 70 (don’t chase the top), then enter on the next candlestick open. Conversely, if the price drops below the 30-day low or losses expand to twice the stop-loss range, you must exit unconditionally.
Once the signal is set, the next step is execution—execute, execute, and execute again. The system will inevitably enter an "invalid period," such as during a losing streak. The key is whether you can grit your teeth and hold on during these times—that’s what separates professional traders from amateurs.
**Risk control is the last line of defense.** The maximum loss on a single trade should not exceed a fixed percentage of total capital, such as 1.5%. This design ensures that even after ten consecutive losses, the account won’t be wiped out. Additionally, set daily and weekly loss limits; once reached, stop trading immediately and wait until emotions settle. Also, prepare contingency plans for extreme market conditions in advance—don’t wait until the last minute.