These six iron rules are all very important. If they provide you with direction, help, or inspiration in the investment market, remember to follow, like, and save.

Trading coins from huge losses to great wealth!

One, regarding returns.

Assuming you have 1 million, when the return reaches 100%, your assets will be 2 million. If you then lose 50%, your assets will return to 1 million. Clearly, losing 50% is much easier than earning 100%.

Two, regarding price fluctuations.

If you have 1 million, after a 10% rise on the first day your assets reach 1.1 million, then after a 10% drop the next day your assets will be 990,000. Conversely, if you drop 10% on the first day and rise 10% on the second day, your assets will still be 990,000.

Three, regarding volatility.

If you have 1 million, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, and lose 20% in the sixth year, your assets will remain at 1.405 million, with an annualized return of only 5.83%, even lower than the coupon interest rate of a five-year treasury bond.

Four, regarding 1% daily.

If you have 1 million, and can earn 1% daily before exiting, after 250 days your assets could reach 12.032 million, and after 500 days your assets will reach 145 million.

Five, regarding 200% annually.

If you have 1 million, and achieve a 200% return for five consecutive years, after five years your assets will reach 243 million, but such high returns are hard to sustain.

Six, regarding tenfold returns in ten years.

If you have 1 million and hope to reach 10 million in ten years, 100 million in twenty years, and 1 billion in thirty years, you need to achieve an annualized return of 25.89%.

Seven, regarding margin replenishment.

Assuming you bought a certain coin at 10 with 10,000 and it has now dropped to 5, if you buy another 10,000, your average cost will drop to 6.67, not the 7.5 you might expect.

Eight, regarding holding costs.

If you have 1 million and invest in a certain coin with a 10% profit, when you decide to sell you can leave behind chips worth 100,000, so your holding cost will be zero, allowing you to hold long-term without pressure. If you are extremely optimistic about this coin and leave chips worth 200,000, you will find that your profit rises from 10% to 100%, but do not get complacent because if the coin drops 50% later, you may still incur losses.

Nine, regarding asset allocation.

With risk-free asset A (annual return 5%) and risky asset B (return -20% to 40%), if you have 1 million, you can invest 800,000 in risk-free asset A and 200,000 in risky asset B, then your worst annual return is zero, and the best return could be 12%. This is the prototype of the CPPI technique applied to capital-protected funds.

Will the crypto world be the only way out for ordinary people?

Entering the crypto world for a decade, I want to tell everyone that if you want to change your fate, you must try the crypto world. If you cannot get rich in this circle, ordinary people may really have no more opportunities in their lifetime.

Characteristics of excellent traders.

First, excellent traders must be patient to withstand prosperity!

Market Cycle Theory.

"Five Poor, Six Dead" happens every year; according to cycle theory, there are actually not many best times to trade coins in a year. "Five Poor, Six Dead, Seven Uncertain to Turn Around"; every year in May, June, July, and August, I usually remain in cash and observe.

So, when is the good time to enter the market?

Enter the market at the end of September and exit at the end of November.

Enter the market before the Spring Festival and clear out in April.

Implement these two iron rules, of course, excluding short-term operations of individual small-cap stocks.

Next, you need to learn how to find hundredfold coins and achieve wealth during a bull market.

Stick to these ten principles when trading coins, and you will surely reap rewards.

Principles of market trading:

Do not easily be deceived into giving away low-priced chips: maintain firm beliefs to prevent manipulators from colluding to drive down prices.

Chasing highs and cutting losses, going all in and out is always a big taboo: under favorable trends, gradually building positions during declines is lower risk, lower cost, and greater profit than chasing highs.

Reasonably allocate profits: maximize the release of funds, rather than just increasing positions.

Quickly profit out, quickly hold coins: always maintain a good mindset, do not speculate, do not be impatient, do not be greedy, do not fear, and do not do unprepared things.

Ambush or private placement low-priced coins rely on experience and judgment: secondary market games require technology and information, do not lose sight of the main point, otherwise it will be chaotic.

Building positions and unloading should be tiered: gradually widen the price range to effectively control the risk and profit ratio.

Familiarize yourself with the interconnected effects: each coin does not exist in isolation; many tools can help view coin information and consult, understanding these interconnected effects is very important.

Positioning must be reasonable: the allocation of hot coins and value coins must be balanced, neither too conservative to miss opportunities, nor too aggressive to face high risks. Value coins should be stable, while hot coins are highly volatile, which could either skyrocket or plummet to zero.

Having coins in hand, money in the account, and cash in the pocket: this is the safest and most reassuring standard configuration. You cannot go all in; going all in will lead to death. Mastering risk control and reasonable capital allocation is key to your mindset and success; investing with spare money is fundamental.

Master basic operations: learn to draw inferences from one instance, grasp the basic thinking of trading. Observation is the premise, remember each high and low point as reference data, learn to record, summarize materials, develop a reading habit, and cultivate the ability to filter and select information.

Summary

Through these principles, combined with the cyclic nature of the market and reasonable capital management, I believe you will gain something in the crypto world. Remember, opportunities and risks coexist in the crypto world; only by mastering the right methods and mindset can you stand undefeated in this turbulent market. I hope these experiences can help you. Don't hesitate to [check the homepage] for the latest crypto information and trading tips.