When I was eighteen, I officially started trading cryptocurrencies and successfully earned my first wealth in life, reaching 5 million. The excitement I felt when I first checked my account was beyond words, as if a new door had been opened.
Here is a simple and effective investment strategy that I have been using for reference:
First, divide your funds into five equal parts. If you have 10,000 yuan, divide it into five parts, using 2,000 yuan for each trade. Use one part of the funds to buy an asset at the current price. If the price drops by 10%, use another part of the funds to buy more. When the price rises by 10%, sell a portion.
Continue executing these steps until all funds are used up or all assets are sold. With this strategy, once you buy in, you don't have to worry even if the price falls, because we will continue to increase our position. When all funds are exhausted, the price usually has decreased by nearly 50%. Unless there is significant market volatility, the price will not drop quickly.
From a profit perspective, each sale can yield a 10% return. Taking a total fund of 100,000 yuan as an example, trading with 20,000 yuan each time will result in a return of 2,000 yuan upon selling.
However, this strategy also has some issues. A 10% fluctuation is relatively large, which may make it difficult to complete trades, leading to longer waiting times, affecting the efficiency of fund usage, causing funds to be idle for long periods, or being tied up in a particular asset. To address this issue, the fluctuation range can be narrowed.
For example, choose more stable assets and invest in financial products while funds are idle, so that you can earn additional income while waiting for price fluctuations.