This summary of 8 years of trading coins is a bit superficial
顶级交易员罗龙
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After 8 years of trading cryptocurrencies, I've seen too many people fall into these four traps. Today, I'll share some hard truths that beginners must read.
First, averaging down is a mathematical trap. If you buy for 10 at 10,000 and then buy for 5 at 10,000, do you think your average cost is 7.5? Wrong! The true cost is 6.67. This is because the quantity bought at 5 lowers the average price. This algorithm is best understood by the market makers, who wait for the unsuspecting traders to miscalculate.
Second, compound interest is the real profit. With a principal of 100,000, if you earn 1% daily, you'll have 1.32 million after a year. Don’t believe it? Try calculating it yourself. The question is, can you really stop after making 1% every day? I tried for three months and failed.
Third, a 60% win rate is enough. Out of 100 trades, if you win 60 times at 10% and lose 40 times at 10%, you can still earn 300% in the end. Sounds simple, right? But the reality is that most people, after making some profit, want more; if they lose, they hold on stubbornly, and in the end, they lose everything.
Fourth, turning 10,000 into 100 million is a fairy tale. Theoretically, if you make 10% every time and win 97 times in a row, you can turn 10,000 into 100 million. But the reality is that 99.99% of people die halfway. Why? Two words: greed! After making some profit, they want to double it, only to find themselves back to square one overnight.
The cryptocurrency world is a large slaughterhouse of human nature. Those who shout about getting rich every day end up becoming someone else's ATM. The ones who truly survive are those who can control their impulses.
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