A Look at 4 Lesser-Known Trading Tips in the Cryptocurrency World
If you bought 10,000 U of a coin when it was at 10 U,
and then bought another 10,000 U when it dropped to 5 U,
your cost price would be 6.67 U,
rather than the imagined 7.5 U.
If you have 100,000 and earn 1% every day before exiting,
assuming 250 trading days a year,
by the end of the year, your assets can reach 1.3232 million,
and in two years, you would have earned 10 million.
If the probability of successful investment is 60%,
and you invest 100 times in a row,
setting both your take-profit and stop-loss at 10%,
then your final return rate would be 300%.
If you enter the market with 10,000 U and earn 10% each time,
you can reach 1 million U in 49 days,
10 million U in 73 days,
and over 100 million U in 97 days.
However, achieving this in practice
is something that not a single person out of 10,000 can accomplish,
primarily because they cannot control their greed.
I won't discuss spot trading here;
today we talk about contracts.
So, what is position management, and what is capital management?
Position management, capital management:
If you have 10,000 U,
many new players or some seasoned investors
often use their principal.
20%-30% as the basic position.
At that time,
whether you are in profit or loss
will greatly affect your mindset,
which in turn impacts the final outcome.
My personal opening position habit
is to use 2%-5% of the principal as the basic position,
with leverage at 20 times.
Those who casually use 100 times
or even 125 times leverage
are essentially seeking their own demise.
Whether it's futures, stocks,
or contracts in the cryptocurrency world,
spot trading is a game of human nature.
Leverage amplifies one's greed;
everyone has their own greed,
and if you infinitely amplify that greed,
you will ultimately be consumed by it.
Therefore, trading must involve
proper capital management and position management;
