In the cryptocurrency world, with a small amount of capital (for example, 5000u), focusing only on secondary trading, how to gradually grow it, here's some thoughts:
First, there are several common situations on Twitter:
1. Make money from major trends, with a certain amount of capital, able to play and wait;
2. 10U Battle God, mostly for show, generally doesn't last long;
3. Heavily invested in a particular trade, obtaining the first bucket of gold, either continue until liquidation or focus on implementing a stable strategy to advance further;
I am often asked, I only have 1000U or 2000U, what should I do? I usually reply:
1. Aggressively bet the capital on a certain altcoin spot that looks good from both technical and fundamental perspectives;
2. Steady, split the principal into 2-3 parts and bet on 2-3 altcoin spot assets that are promising from both technical and fundamental perspectives;
3. Once there is profit, withdraw the principal, let the profit run, the so-called zero-cost position, continue to look for the next spot asset, and so on;
5. However, spot trading does require time, it may get stuck, and you might not get in, so most people seem not to execute because most want to double their money quickly;
6. I usually tell newcomers not to touch contracts; if you really want to learn, you can do simulated trading or test with small amounts in real time;
Some personal thoughts:
1. If your skills are strong, with a high win rate and low drawdown, then you can use this small amount of capital to keep rolling;
2. Typically, for small amounts of capital, if you rely purely on technical analysis, you must have a high win rate;
3. If you pursue a high reward-to-risk ratio, your win rate will decrease, and as the win rate drops, your drawdown will be significant. This small capital approach has little advantage and greatly affects your mindset;
4. Small capital needs to rely more on compound interest; it relies more on maintaining a low drawdown through a high win rate;
5. As for what time frame to trade, it really doesn't matter. What matters is the high win rate and high reward-to-risk ratio you ultimately choose to face; (Although we see many real trading experts basically have a high reward-to-risk ratio, such as Bit Fatty, Bit Wave, etc.)
6. Never have the idea of betting heavily; successful people on Twitter only use heavy positions when they have an extremely high win rate. Even in losses, their control over losses and ability to handle losses are also very strong;
In short, it is recommended to focus on stability, try not to lose money, and slow and steady profits are positive. As you continue to compound, your principal will gradually increase, and your confidence in each subsequent trade will also increase. What we can do is ensure that profits can cover losses. Everyone will think about how to manage if I had 1 million or 2 million, but is this realistic? Moreover, if you are not profitable with a few thousand, even if you are given hundreds of thousands or millions, you still won't be profitable!#美国ADP数据超预期 #隐私币生态普涨 #美国加征关税 $AIA $ZEC $DASH