There are very few people with a monthly salary of over 10,000; those with a monthly salary of over 20,000 are even rarer. Most people still earn below 10,000 a month, feeling that an ordinary person earns just enough to buy a house in a lifetime. So, if you are in the cryptocurrency world, how much do you want to earn before you stop?
The method I've personally tested: My trading method is very simple and practical; I turned 8 digits in just one year, only trading one pattern, entering the market only when I see an opportunity, and not making trades without a pattern. For five years, I have maintained a win rate of over 90%.
In the cryptocurrency world, there are some obscure knowledge or small tricks that may seem insignificant but are actually quite important. Today, let's discuss a few.
Cost Averaging is actually not that simple.
For example, if you invest 10,000 USDT when the coin price is 10 USDT, and later the coin price drops to 5 USDT, and you add another 10,000 USDT. At this point, your average cost is 6.67 USDT, not the 7.5 USDT that many people think. This situation is quite common in the market, and understanding this cost calculation is quite helpful for managing positions.
The Power of Compounding is really quite frightening.
If you have 100,000 USDT and earn 1% every day before stopping, and if you can persist for a year with 250 trading days, your assets could grow to 1,323,200 USDT by the end of the year. If you can persist for another two years, your assets can reach over 10 million. Of course, this is based on stable returns, and the difficulty lies in how to maintain this compounded growth.
Probability and Take Profit/Stop Loss have their intricacies.
Assuming you have a 60% chance of winning your investments, and you take profits after earning 10% and cut losses after losing 10%. If you operate this way for 100 times, your total return can reach 300%. But the premise is that you must strictly adhere to your trading plan and not be swayed by market fluctuations, especially during times of high volatility, you need to stay calm.
Greed is the biggest stumbling block.
For example, if you start with 10,000 USDT and earn 10% each time, after 49 days your assets could exceed 1 million, after 73 days over 10 million, and potentially over 100 million after 97 days. But in reality, very few people can achieve this because most cannot control their greed and end up failing. This is also why many traders earn money but fail to keep it.
Contract Trading and Position Management.
In contract trading, position and capital management are extremely important. Many people like to use 20%-30% of their principal to open positions, but personally, I prefer to use only 2%-5%, and then leverage by 20 times. This way, the risk is controllable, and you won’t lose your composure due to large fluctuations.