The true masters of cryptocurrency trading follow the principle of simplicity: repeat simple actions. This short-term trading model has a win rate as high as 98.8%. Learning it will allow you to easily grow from 100,000 to 10,000,000, focusing solely on this one model!
The truth about high leverage is twofold:
1. The spike is designed to punish those who don’t obey: Exchanges love you to use high leverage; a spike in the middle of the night can wipe out your entire capital.
2. Mental breakdown: With 100x leverage, a 1% price fluctuation can make you restless; can you still operate rationally?
Remember:
- Bitcoin over 10x = gambling with your life
- Altcoins over 5x = giving away money
The lower the leverage, the more you dare to hold positions, and the more you can catch the trend!
The three big ways to die in a counter-trend position:
1. Stubborn holding: "I just can’t believe it won’t drop!" — result: total capital loss.
2. Averaging down: "If it drops again, I’ll add to my position to reduce my average!" — result: you’ll run out of resources.
3. Mystical thinking: "The K-line has shown a golden cross, it must reverse!" — the big player teaches you a lesson with a large bearish candle.
The correct approach: better to miss out than to give away your head!
1. Position splitting is not mystical; it's a lifesaver!
How to split?
For example, if you have 30,000 USDT, split it into three parts, each 10,000 USDT. Use only one part for each trade, and keep the rest in your wallet as if they don’t exist.
Remember these two numbers: Bitcoin maximum 10x, altcoins no more than 5x!
Even if you are certain it will skyrocket, don’t be greedy! The higher the leverage, the easier it is for the exchange to wipe you out with a single spike.
For example: if you use 10x leverage on 10,000 USDT for Bitcoin and the price drops by 10%, your account evaporates immediately. But if you only use 5x leverage, you’ll only blow up after a 20% drop, doubling your margin of error.
Position splitting has another hidden function: it prevents impulsive trading!
When people lose money, they tend to make "revenge trades," which only leads to greater losses.
After splitting positions, even if you impulsively blow up one part on a bad day, you still have two parts left to help you calm down. Is losing 10,000 the same as losing 30,000 in mindset?
