After four years of professional trading, I can easily earn $2000 a day.

In the cryptocurrency world, there are some lesser-known facts or techniques that are often overlooked but are very important. Today, I would like to share a few:

1. Cost averaging is not as simple as it seems.

For example, if you invest $10,000 when a cryptocurrency is priced at $10, and then add another $10,000 when the price drops to $5, your average cost is actually $6.67, not the $7.5 that many people assume. This situation is very common in a volatile market, and understanding this cost calculation method is helpful for managing positions.

2. The compounding effect is astonishing.

Suppose you have $100,000, and you make 1% every day before exiting. If you can maintain 250 trading days in a year, your assets will grow to $1,323,200 after one year. Continuing for another two years, your assets could even reach the tens of millions. Of course, this result is based on a stable return rate, but the hidden challenge is how to consistently maintain this compounding effect.

3. The relationship between probability and take-profit/stop-loss.

If your investment success rate is 60%, and you set a 10% take-profit and stop-loss for each trade, after 100 trades, your total return could reach 300%. However, this premise relies on strictly following your trading plan and not letting market fluctuations affect your emotions, especially staying calm in a highly volatile market.

4. Greed is the greatest enemy.

If you start with $10,000 and earn 10% each time, by the 49th day, your assets could reach $1,000,000, and by the 73rd day, you could surpass $10,000,000, with a chance of exceeding $100,000,000 by the 97th day. However, in reality, very few people can achieve this because most cannot control their greed during the process, leading to failure along the way. This is why many traders, despite being profitable, find it hard to sustain their gains over the long term.

Contract trading and position management.

In contract trading, position management and capital management are key factors determining success or failure. Many people use 20%-30% of their capital as the base position, but I personally prefer to use only 2%-5% and employ 20x leverage. This effectively controls risk and avoids emotional decisions caused by excessive volatility.