$DOGE
Inventory of 4 little-known trading cold facts in the cryptocurrency circle
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, the cost would be 6.67 U, not the imagined 7.5 U.
2. If you have 100,000, and earn 1% every day and exit, with 250 trading days a year, your assets could reach 1,323,200 after one year, and you could make 10 million after two years.
3. If the probability of successful investment is 60%, and you invest 100 times consecutively with profit-taking and stop-loss set at 10%, the final return rate would be 300%.
4. If you enter the market with 10,000 U and earn 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.
The above is something that no one among 10,000 people can achieve in practice, primarily because they cannot control their inner greed. Let’s not talk about spot trading, today let's talk about contracts.
In contract trading, it is essential to have your own position management and capital management, then combine it with your risk tolerance for opening positions. So, what is position management, and what is capital management?
Position management, capital management: If you have 10,000 U, many new players or some old hands often use 20%-30% of their principal as the basic position.
At that time, whether it is profit or loss, it will have a significant impact on your mindset, thereby affecting the final outcome.
My personal opening habit is to use 2%-5% of the principal as the basic position, with a leverage of 20 times. Those who casually use 100 times, or even 125 times leverage are essentially courting death.
Whether it is futures, stocks, or contracts in the cryptocurrency circle, spot trading is a game of human nature, and leverage amplifies one's greed. Everyone has their own greed; if you infinitely amplify your greed, you will ultimately be consumed by it.
Therefore, trading must involve your own capital management and position management; this is the foundation for long-term profit.
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