In the cryptocurrency world, earn 430,000 U in 2 months, the core of profit fully revealed
The content shared today can help you avoid ten years of detours in cryptocurrency trading; if you understand it, you might make money!
Three key elements to building a trading system
1. Risk-Reward Ratio: The key trick to making money
Many people lose money in the cryptocurrency world, often because they don't hold onto profitable trades and sell as soon as they make a profit, while stubbornly enduring losing trades. If you can reverse this by minimizing losses and maximizing gains—like having a win rate of 20%, even if you lose 5 trades, as long as you have 1 profitable trade, you can break even. Conversely, if you incur significant losses while making small gains, even 5 profitable trades might not offset 1 loss, and you will definitely lose money.
2. Win Rate Trap: Don't be fooled by surface data
The key factor affecting win rate is not trading skills, but the setting of the risk-reward ratio. For example, if you take profits after gaining 1 point but only cut losses after losing 100 points, in this case, even if you enter randomly, your win rate could exceed 90%, yet you'll still end up losing money. A truly effective trading strategy is to reconstruct the win rate by reasonably setting the risk-reward ratio. For me, my win rate might be less than 10%, but my risk-reward ratio is at least 10 times, 20 times, or even as high as 30 times or 50 times. Even if I have 20 consecutive losses, as long as I have 1 profitable trade, I can basically break even.
3. Frequency Curse: Control your hands to win
90% of traders lose money because they can't control their hands, thinking there are many market opportunities, and they open positions frequently, which is a manifestation of the impulse of 'human nature's aversion to missing out.' It's important to understand that the average daily trading frequency determines the survival rate of the account; trading too frequently generally leads to losses. The core ability of top traders is to have the strategic restraint of a sniper, patiently waiting for the best moment. I am also working on this; although I am generally profitable, sometimes I trade too frequently due to the fear of missing out, leading to significant drawdown in my account. Trading is about continuously battling and balancing oneself; once you understand the essence of trading, everything becomes simple.
In the current cryptocurrency market, keeping up with trends is the only way to make money. Right now, Trump and Solana are popular; Conan, as a dogecoin concept related to Trump, is also a meme coin on the Solana chain, backed by a strong community with high consensus, and currently has a low market cap, with huge growth potential. Friends interested should pay attention.
