1. Splitting positions is not superstitious; it's a lifesaver!
How to divide specifically?
For example, if you have 30,000 U, split it into 3 parts, each part being 10,000 U. Use only 1 part for each trade, and keep the rest locked in your wallet as if it doesn't exist.
Remember two numbers: A big position is a maximum of 10x, and altcoins should not exceed 5x!
Even if you see a big surge coming, don’t be greedy! The higher the leverage, the easier it is for the exchange to send you to zero with a single needle.
For example: If you open a 10x position with 10,000 U and the price drops 10%, the account evaporates directly. But if you only open 5x, a 20% drop will be needed to get liquidated, doubling the margin for error.
Splitting positions has a hidden function: it cures impulsiveness!
Once people start losing money, they easily engage in 'revenge trading,' resulting in even greater losses.
After splitting positions, even if one day you get carried away and blow up 1 part, the remaining 2 parts can still help you calm down. Is losing 10,000 the same as losing 30,000 in terms of mindset?
2. High leverage = chronic suicide, don’t be stubborn!
There are always people who refuse to accept it: 'Old Wang next door made enough for a BMW in one night with 100x leverage, why can’t I?'
Bro, Old Wang won’t tell you he has blown up 10 times, nor will he say that his BMW was swapped for a house deed.
The truth about high leverage is just two points:
1. The spike is specifically for those who refuse to accept it: Exchanges love you high-leverage traders; a spike in the middle of the night can wipe out all your capital.
2. Mental breakdown: With 100x leverage, you are restless with a 1% price fluctuation; can you still operate rationally?
Remember:
- Big positions over 10x = betting your life
- Altcoins over 5x = giving away money
The lower the leverage, the more you dare to hold positions and the more you can benefit from the trend!
Three deadly ways to trade against the trend:
1. Hold on stubbornly: 'I don’t believe it won’t drop!' — Result: you lose all your capital.
2. Averaging down: 'If it drops again, I will add to my position to lower my average price!' — Result: you run out of funds.
3. Superstitious: 'The K-line has a golden cross, it must reverse!' — The dealer teaches you a lesson with a big bearish candle.
Correct approach: Better to miss out than to give away your head!
The market is going crazy? Just watch! Missing out doesn't lose money, but going against the trend and losing can be fatal.
1⃣ Only 10% of people in this market can make money, as it is destined to be a zero-sum game;
2⃣ The money you can earn will only occur during 20% of the bull market time; the rest of the time will eliminate those without investment logic or patience;
3⃣ Always maintain a mindset to withstand a 30%-50% drawdown to laugh in the end; otherwise, the process will be tormenting for you;
4⃣ 40% of retail traders may end up finishing right at the start; there are more pitfalls in this circle than you imagine;
5⃣ At least 50% of people in this market will choose to trade contracts, and most will end up with nothing and lose everything; remember that contracts are gambling;
6⃣ In a bull market trend, 60% or more of those who trade spot can make a profit, and those who can hold through the entire bull market cycle are the final winners;
7⃣ It is estimated that 70% of people have been continuously depositing without ever withdrawing; the crypto world is far more brutal than you imagine;
8⃣ 80% of people cannot return to the past due to the wealth effect of this circle, becoming obsessed like drug addiction;
9⃣ 90% of people ultimately are just passersby in this market, but everyone thinks they are the chosen ones;
