Cryptocurrency Trivia

Cost Averaging: Don't be misled by appearances; for example, buying 10,000 U at 10 U and then adding another 10,000 U at 5 U results in an average cost of 6.67 U, not 7.5 U. Understanding this is crucial for managing positions.

Compound Interest Effect: With a principal of 100,000 U, earning 1% daily, after 250 trading days in a year, assets can grow to 1,323,200 U. If sustained for two years, assets could reach tens of millions. The challenge lies in maintaining compounding.

Probability and Take Profit/Stop Loss: With a 60% success rate and a 10% take profit/stop loss each time, after 100 trades, the total return could reach 300%. The key is to strictly execute the trading plan and remain calm.

Controlling Greed: Starting with 10,000 U, earning 10% each time, theoretically, one could reach 1 million U in 49 days, break 10 million in 73 days, and exceed 100 million in 97 days. However, in reality, very few achieve this due to greed leading to failure.

Contract Trading and Position Management: The above techniques are especially important in contract trading and position management, requiring flexible application based on actual circumstances.