1. If you bought 10,000 U of a certain coin when it was at 10 U, and then bought another 10,000 U when it dropped to 5 U, the cost at this point is 6.67 U, not the imagined 7.5 U.
2. If you have 100,000 and earn 1% every day, exiting the market, based on 250 trading days a year, your assets will reach 1,323,200 in a year, and after two years, you will have earned 10 million.
3. If the probability of investment success is 60%, and you invest 100 times in a row, setting both the take-profit and stop-loss at 10%, then the final return rate will be 300%. 4. If you enter the market with 10,000 U, making a profit of 10% each time, you will reach 1 million U on the 49th day, 10 million U on the 73rd day, and over 100 million U on the 97th day. What I've said above is something that no one among ten thousand people can achieve in practice, and the fundamental reason is the inability to control the greed within. I won't mention spot trading here; today let's talk about contracts. For contract trading, you must have your own position management and capital management, and then open positions based on your own risk tolerance.
So, what is position management and what is capital management?
Position management, capital management: If you have 10,000 U in funds, many novice players or some experienced investors use 20%-30% of their principal as the basic position. At that time, whether it’s profit or loss, it will have a significant impact on your mindset, thus affecting the final outcome.
My personal habit for opening positions is to use 2%-5% of the principal as the basic position, with a leverage of 20 times. Those who frequently use 100 times or even 125 times leverage are essentially courting death.
Whether it's futures, stocks, or contracts in the crypto world, spot trading is a game of human nature. Leverage amplifies one's greed. Everyone has their own greed, and if you amplify that greed infinitely, you will ultimately be consumed by it. Therefore, trading must involve your own capital management and position management; this is the foundation for long-term profitability.
By the way, let me talk about the coin PEOPLE. I started paying attention to it last year, at that time it was basically at the bottom. I remember that if I bought it back then and compared it to today's market price, it has increased by about tenfold. It took about half a year. Personally, I think the current price of this kind of altcoin cannot be maintained for long, as there are currently no actual application scenarios for this coin. Speaking of actual application scenarios, what is very interesting about this bull market is that no matter how luxurious the star lineup or how strong the technology is, it cannot compare to the reality of price increases. The vast majority of people focus on price. Speaking of application scenarios, the lessons learned from EOS back in the day are still fresh in mind.
Quoting the industry figure Sun Yuchen from the crypto world, value investing is a waste, go all-in on MEME and live in the palace.
This sentence reflects very well. So in this bull market, mainstream assets like BTC and ETH are definitely necessary, and some funds can be allocated to the MEME sector. After all, the MEME sector has brought a lot of wealth myths to the crypto world in this bull market.
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