In the cryptocurrency world, there are some little-known facts or techniques that are often overlooked, but are very important. Today, I would like to share a few:

1. Cost averaging is not as simple as it seems

For example, if you invest 10,000 U when the price of a coin is 10 U, and then add another 10,000 U when the price drops to 5 U, your average cost is actually 6.67 U, not the 7.5 U that many people believe. This situation is quite common in a volatile market, and understanding this method of cost calculation helps with position management.

2. The compounding effect is astonishing

Assuming you have 100,000 U and earn 1% every day before exiting. If you can maintain 250 trading days in a year, your assets will grow to 1,323,200 U after one year. Continuing for another two years, your assets could even reach the tens of millions. Of course, this result is based on stable returns, but the hidden challenge is how to consistently maintain this compounding effect.

3. The relationship between probability and taking profits and losses

If your investment success rate is 60%, and you set a 10% take profit and stop loss each time, after 100 trades, your total return could reach 300%. However, this premise requires you to strictly follow your trading plan, not let market fluctuations affect your emotions, especially in a highly volatile market where you need to stay calm.

4. Greed is the biggest enemy

If you start with 10,000 U and earn 10% each time, by the 49th day, your assets could reach 1 million U, and by the 73rd day, you could break through 10 million U, with a chance to exceed 100 million on the 97th day. However, in reality, very few people can achieve this because most cannot control their greed during this process, leading to failures along the way. This is why many traders, even when profitable, struggle to maintain their success over the long term.

Contract trading and position management

In contract trading, position management and capital management are key determinants of success or failure. Many people use 20%-30% of their principal as the base position, but I personally prefer to use only 2%-5% and employ 20x leverage. This effectively controls risk and helps avoid emotional decisions caused by excessive volatility. #Honor Points New Year Lottery, win Macbook, exquisite peripherals and other great gifts! ##$VINE rises over 50%, do you hold it? ##Which altcoin have you purchased recently? ##BTC##ETH#美国加密项目零资本利得税？