📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
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1️⃣ Research the MBG project
Share your in-depth views on MBG’s fundamentals, community governance, development goals, and tokenomics, etc.
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Take part in MBG activities (CandyDrop, Launchpool, or spot trading), and post your screenshots, earnings, or step-by-step tutorials. Content can include profits, beginner-friendl
Many people find it difficult to profit in the cryptocurrency market, not due to a lack of effort, but because they do not truly understand the nature of trading. Successful trading can be simplified into one principle: "Do not chase small profits, do not endure large losses." This seemingly simple concept is actually quite challenging to implement.
Let's look at a common scenario: suppose you open a long position with 20,000 USDT, and when the price rises to 21,000, you are worried about a pullback and choose to close your position, earning a 5% profit. However, the market continues to rise to 25,000 after that, and you miss out on 50% of potential gains. This experience may make you more inclined to hold in your next trade, but if the market suddenly reverses, you might face losses again.
This short-term trading mindset often traps investors in a cycle of small gains and large losses. So, is there a method that can be profitable in various market environments? Unfortunately, there is no such universal strategy.
In trading, you must make a choice: either pursue stable small profits or focus on capturing big trends without being disturbed by short-term fluctuations. Personally, I prefer the latter - not chasing small gains, but waiting for big opportunities.
Why is there such a choice? Because true wealth accumulation is not achieved through frequent buying and selling, but by capturing major market movements and preserving profits. Imagine if you could achieve a 200% return in one market wave and successfully hold onto it, then realize another 200% growth in the next wave; this is the magic of compound effect. In contrast, if you trade frequently, making profits and then losses, you may ultimately end up with nothing to show for it.
If you start to realize that the frequency of trading does not directly equate to profitability, then you need to cultivate the following key abilities: waiting, holding on, and decisiveness. This means waiting for the right entry point, holding on to the profits you have gained, and having the courage to take action at critical moments.
This requires a stable mindset, ample patience, sufficient courage, and the ability to remain unaffected by short-term market fluctuations. Can you stay calm while others chase short-term gains? Can you bravely enter the market during times of panic? Only by possessing these qualities can you potentially achieve significant returns in the next bull market.
Remember, successful trading is not based on luck, but on a deep understanding of the market, good rhythm control, and the correct investment philosophy. Those who trade blindly often incur continuous losses, while if you have already begun to think and practice these principles, you are already on the right path.