I have been in the cryptocurrency space for eight years and have been trading professionally for five years.
I have done long-term, short-term, ultra-short, and swing trading; I have pretty much tried every type of method, so I have a say on this issue.

I have always said that mastering a skill requires the 10,000-hour rule. With eight hours a day and over 200 days a year for review, it takes about five years, and this is just the foundation for starting to earn stable profits.

Many experts who have traded from tens of thousands to hundreds of millions only used contracts with very high leverage. As a result, during a bear market, many have lost everything, but you just don't know about it. Human nature, in the face of a major trend, often causes people to lose the ability to make the right judgments.

In the cryptocurrency space, there are some obscure knowledge or small tricks that may seem insignificant but are actually quite important. Today, let’s talk about a few of them:
Cost averaging is actually not that simple.
For example, if you invested 10,000 U when the price was 10 U, and later the price dropped to 5 U, and you added another 10,000 U, then your average cost is 6.67 U, not the 7.5 U that many people think. This situation is quite common in the market, and understanding this cost calculation is quite helpful for managing positions.
The compound interest effect is really quite scary.
If you have 100,000 U and earn 1% every day, you should stop. If you can persist for a year with 250 trading days, by the end of the year, your assets could grow to 1,323,200 U. If you continue for another two years, your assets could exceed 10 million. Of course, this is based on stable returns, and the challenge lies in how to maintain this compound growth consistently.
Probability and setting take-profit and stop-loss levels are crucial.
Assuming you have a 60% probability of winning, taking a 10% profit each time and stopping loss at 10%, if you operate this way 100 times, your total return could reach 300%. However, the premise is that you must strictly adhere to your trading plan and not be swayed by market fluctuations, especially during times of high volatility, you must remain calm.
Greed is the biggest stumbling block.
For example, if you start with 10,000 U and earn 10% each time, after 49 days, your assets could exceed 1 million, after 73 days, over 10 million, and who knows, maybe over 1 billion after 97 days. But in reality, very few people can achieve this because most cannot control their greed and end up failing. This is also why many traders earn money but cannot keep it.

Contract trading and position management.
In contract trading, position and fund management are extremely important. Many people like to use 20%-50% of their capital to open positions, but I personally prefer to use only 10%-20%, setting take-profit and stop-loss levels, which makes the risk controllable and prevents panic from large fluctuations.

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