Inventory of 4 little-known trading tips in the cryptocurrency world

1. If you bought 10,000 U when a coin was at 10 U, and then bought another 10,000 U when it dropped to 5 U, your cost would be 6.67 U, not the imagined 7.5 U.

2. If you have 100,000 and earn 1% daily before exiting, with 250 trading days a year, your assets could reach 1,323,200 in a year, and after two years, you'd earn 10 million.

3. If the probability of a successful investment is 60%, and you invest 100 times consecutively, setting both take profit and stop loss at 10%, your final return would be 300%.

4. If you enter the market with 10,000 U, earning 10% each time, you could reach 1 million U on the 49th day, 10 million U on the 73rd day, and over 100 million U on the 97th day.

Achieving the above in practice is something that none out of ten thousand people can do, mainly because they cannot control their inner greed. Let's not discuss spot trading now, today's focus is on contracts.

In contract trading, it is essential to have your own position management and capital management, and to open positions based on your risk tolerance. So, what is position management, and what is capital management?

Position management, capital management: If you have 10,000 U, many novice traders or some experienced ones often use 20%-30% of their capital as the basic position.

Whether you profit or lose will greatly affect your mindset, thus impacting the final outcome.

My personal habit is to use 2%-5% of my capital as the basic position, with a 20x leverage. Those who casually use 100x or even 125x leverage are essentially looking for trouble.

Whether it's futures, stocks, or contracts in the cryptocurrency world, spot trading is a game of human psychology, and leverage amplifies one’s greed. Everyone has their own greed, and if you let that greed expand infinitely, you will ultimately be consumed by it.

Therefore, trading must involve proper capital management and position management, as this is the foundation for long-term profitability.