Often unknown, yet extremely important techniques!! 1. Cost averaging is not as simple as imagined

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 very common in market fluctuations, and understanding this cost calculation method helps in managing positions.

2. The compounding effect is astonishing

Assuming you have 100,000 U and earn 1% daily 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, the assets can even reach the tens of millions level. Of course, this result is based on stable returns, but the hidden challenge is how to continuously maintain this compounding.

3. The relationship between probability and profit/loss limits

If your investment success rate is 60%, and you set a 10% profit and loss limit each time, after 100 trades, your total return can reach 300%. However, this premise is that you strictly adhere to your trading plan and are not influenced by market fluctuations, especially maintaining calm in a highly volatile market.

4. Greed is the biggest enemy

If you start with 10,000 U and earn 10% each time, on the 49th day your assets could reach 1,000,000 U, on the 73rd day it could break 10 million U, and on the 97th day there is even a chance to exceed 100 million. However, in reality, almost no one can achieve this because most people cannot control their greed during this process, leading to setbacks along the way. This is why many traders, even if profitable, find it difficult to maintain success.