In the crypto space, with small funds (for example, 5000u), only discussing secondary trading, how to gradually grow, provide some thoughts:
First, on Twitter, there are several regular situations:
1. Make money from the big trend, have a certain amount of principal, can afford to play, can wait;
2. 10U Battle God, basically a show, does not last long;
3. Heavily invest in a certain trade, get the first bucket of gold, either continue until liquidation or calm down and implement a stable strategy to step up;
I am often asked, I only have 1000U, 2000U, what should I do? I usually reply:
1. Aggressive, betting the principal on a certain altcoin spot asset that looks good from both technical and fundamental aspects;
2. Be steady; split the principal into 2-3 parts and place bets on 2-3 altcoin spot targets that look good from both technical and fundamental perspectives;
3. Once there is profit, withdraw the principal, let the profit run, what is called zero-cost holding, continue to look for the next spot target, and so on;
4. However, spot trading does require time; you may get trapped or miss the opportunity, which is why most people seem not to execute, as most want to double their investment quickly;
5. I generally advise newcomers not to touch contracts; if you really want to learn, you can simulate positions or test live trades with small amounts;
Personal reflections:
1. If you have strong skills, a high winning rate, and minimal drawdown, then you can keep rolling this small amount of capital;
2. Usually for small capital, if you rely purely on skills, a high winning rate is necessary;
3. If you pursue a high profit-loss ratio, your winning rate will decrease; once the winning rate decreases, your drawdown will become significant; this is not advantageous for small capital and also greatly affects mindset;
4. Small capital needs to rely more on compound interest; it will depend more on maintaining a low drawdown through a high winning rate;
5. As for what time frame to trade, it really doesn't matter; what matters is the high winning rate and high profit-loss ratio you ultimately face in any situation; (Although we see many real trading experts basically have a high profit-loss ratio, such as Bit Fei Zhai and Bit Lang Lang, etc.)
6. Never have the idea of going all-in; the successful people on Twitter only use heavy positions under a very high winning rate; even when losing, their control over losses and ability to manage losses are also very strong;
In summary, it is recommended to focus on stability, try not to lose money, and slow but steady profit is positive; as you continue to compound, your principal gradually increases, your single position size will also increase, and your confidence in each subsequent trade will increase; what we can do is ensure that profits can cover losses.
Loss is acceptable; everyone will think hypothetically about how to manage with 1 million, 2 million, but is this realistic? Moreover, if you can't make a profit with a few thousand, giving you hundreds of thousands or millions won't help you profit either! @区块天哥