The path to becoming a true cryptocurrency trading expert is simple: repeat simple actions. This short-term trading model has a win rate as high as 98.8%. Learning it will allow you to effortlessly increase your capital from 100,000 to 10,000,000, focusing solely on this one model!
The truth about high leverage comes down to two points:
1. Spike treatment: Exchanges love you high-leverage traders; one spike in the middle of the night and they take all your capital.
2. Mentality collapses: Opening at 100x, a 1% price fluctuation makes you anxious, how can you operate rationally?
Remember: #Stripe stablecoin account
- Bitcoin over 10x = gambling with your life
- Altcoins over 5x = giving away money
The lower the leverage, the bolder you are in holding positions, and the more you can ride the trend!
Three major ways to die in a counter-trend position:
1. Stubborn holding: "I just don’t believe it won’t drop!" — Result: all capital lost.
2. Averaging down: "If it drops again, I’ll add to my position to lower my average cost!" — Result: runs out of resources.
3. Superstitious approach: "The K-line has formed a golden cross; it must reverse!" — The market maker teaches you a lesson with a big red line.
The correct posture: Better to miss out than to give away money!
1. Position allocation is not superstition; it’s a lifesaver!
How to allocate?
For example, if you have 30,000 USDT, split it into three parts, each 10,000 USDT. Only use one part for each trade; the rest is locked in your wallet as if it doesn’t exist.
Remember two numbers: Bitcoin maximum 10x, altcoins should not exceed 5x!
Even if you’re sure it’s going to skyrocket, don’t be greedy! The higher the leverage, the easier it is for the exchange to wipe you out with one spike.
For example: If you open a 10x position with 10,000 USDT on Bitcoin and the price drops 10%, your account evaporates instantly. But if you only open at 5x, you’ll only get liquidated after a 20% drop, doubling your margin of error.
Position allocation also has a hidden function: it cures impulsiveness!
When people lose money, they tend to "revenge trade," resulting in even greater losses.
After allocating positions, even if you lose one part due to impulsiveness one day, the remaining two parts can help you calm down. Is losing 10,000 the same as losing 30,000 in terms of mentality?
