1. Suppose you bought 10,000 U when a certain coin was at 10 U, and then bought another 10,000 U when it dropped to 5 U, the cost at that time is 6.67 U, rather than the imagined 7.5 U.
2. If you have 100,000 and earn 1% daily to exit, based on 250 trading days a year, your assets can reach 1,323,200 after one year, and two years later, you would have made 10 million.
3. If the probability of investment success is 60%, and you invest continuously 100 times, 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, earning 10% each time, you can reach 1 million U by the 49th day, 10 million U by the 73rd day, and over 100 million U by the 97th day. However, achieving this in practice is something that not a single one among ten thousand people can do, primarily because they cannot control their inner greed. Let's not talk about spot trading today, but let's discuss contracts.
In contract trading, it is essential to 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 of capital, many new players or some seasoned traders use their principal.
20%-30% should be used as the base position.
At that time, whether it's a profit or a loss, it will have a significant impact on your mindset, thereby affecting the final outcome.
My personal habit for opening positions is to use 2%-5% of the principal as the base position, with leverage of 20 times. Those who casually use 100 times, or even 125 times, leverage are essentially courting disaster.
Whether it's futures, stocks, or contracts in the cryptocurrency space, spot trading is a game of human nature. Leverage amplifies one's greed; everyone has their own greed. If you magnify greed infinitely, you will ultimately be consumed by it. Therefore, trading must involve your own capital management and position management, as this is the foundation for long-term profitability.
Chen Xi only does real trading, the team still has positions to enter quickly.
