Is cryptocurrency trading a way to get rich? What does it mean to get rich? Getting rich is relative. When 100,000 becomes 1 million, some people think they have gotten rich, but Shanghai people curl their lips. 1 million can only buy a decent toilet in Shanghai. When 1 million becomes 10 million, you can buy a three-bedroom, two-living-room apartment in Shanghai, and you are considered a "normal citizen". So, getting rich is relative, and it is relative to your principal. If the principal is small, no matter how big the profit is, the absolute value is not enough.
Only scale can generate benefits. If you want to survive in the long run, you must take investment risks and anything that might happen into account. The core of leveraged trading is that when you are profitable, you should gradually increase your position and gradually expand it. When you are losing money, you should gradually reduce your position to minimize the loss. This is the essence of trading!
1. Risk Control System Position Dynamic Management Rules
▫ Positive pyramiding: profitable positions are increased in a ratio of 1:0.6:0.3
▫ Reverse razor reduction: Loss-making positions are halved each time
▫ The leverage ratio does not exceed 20% of the account net value
The Iron Rule of Stop Loss
If the loss of a single transaction is less than or equal to 2% of the total funds, if the loss of a single day is greater than or equal to 5%, trading will be forced to be stopped, and if the loss of a week is greater than or equal to 10%, the trading will enter the cooling-off period.
2. Trading Discipline Framework
Signal filtering mechanism
✓ Triple verification system: fundamental + technical + emotional resonance
✓ Confirmation of a breakout of a key support/resistance level
✓ Volatility threshold trigger (ATR ≥ 2 times mean)
Time period control principle: Clear positions one hour before major data; Stop trading on the same day if there are three consecutive losses; Reduce positions by half during inactive periods (such as when the US market is closed)
3. Psychological Management Model
Profitability coping strategies
✔ Withdraw 10% of the profit when it reaches 20% to lock in the profit
✔Reduce leverage by 10% after each new high in net worth
✔ Set dynamic stop profit: automatically close the position when the retracement reaches 30%
Loss recovery process
① Triggering the circuit breaker mechanism: suspend trading for 24 hours
② Perform trauma review: record emotional fluctuations
③ Develop a recovery plan: Simulate disk verification for 2 weeks
4. Strategy Evolution System
Diversified Trading Matrix
▶ Configure 3 non-correlated strategies (trend/arbitrage/hedge)
▶ Fund allocation ratio 5:3:2 dynamic adjustment
▶ Quarterly strategy effectiveness evaluation
Dealing with extreme market conditions
⚠ VIX index>30 to activate crisis plan
⚠ Black swan events trigger reverse hedging
⚠ When liquidity is exhausted, the position will be forced to be reduced to 10%
5. Sustainable Growth Mechanism
Trading log specification Record the basis for each decision and emotional state Mark the completeness of strategy execution (1-5 points) Statistic the winning rate/profit and loss ratio/maximum drawdown every week Cognitive upgrade cycle
▷ Study 2 central bank policy reports every month
▷ Participate in professional trading psychology training every quarter
▷ Annual strategy backtesting (10-year data backtesting)
The core formula of the survival rule:
Long-term survival rate = (risk control × discipline execution) / (emotional fluctuations + leverage abuse)
I hope my fellow coin friends read this carefully. It took me two days to compile this. I hope my method can help you get rich this year.
#CPI数据来袭 #特朗普比特币金库 #MichaelSaylor暗示增持BTC
