The more you buy in the currency circle, the lower the cost?

Some people say that if you buy 10,000 U when the currency value is 10U, and then buy another 10,000 U when it drops to 5U, the cost will drop to 6.67U, not 7.5U as you imagined. It sounds beautiful, but in practice, you may fall into an endless abyss, because the market may continue to fall, but your funds have been exhausted.

Earn 1% a day and become a millionaire easily?

If someone tells you that you can become a millionaire in two years by earning 1% a day, do you believe it? In theory, it is true, but in practice, it is almost impossible to make a stable profit of 1% every day. Market fluctuations and human errors may break this beautiful fantasy.

Probability game, can you always win?

The probability of investment success is 60%. If you invest 100 times in a row and set a 10% take-profit and stop-loss position, can the final rate of return reach 300%? This sounds like a perfect probability game, but in fact, the complexity and uncertainty of the market far exceeds simple probability calculations.

Compound interest effect, billionaires are just around the corner?

Enter the market with 10,000 U, make a profit of 10% each time, and become a billionaire in just a few months? This sounds like a dream story, but in fact, it is extremely difficult to make continuous profits, not to mention the amazing compound growth in such a short period of time.

Now, let's talk about the importance of position management and fund management. In cryptocurrency contract trading, these two are the key to determining whether you can make profits for a long time.

Imagine that you have 10,000 U of funds, but like some novices or old leeks, you use 20%-30% of the principal as a basic position. Doing so is tantamount to dancing on the edge of a knife. Whether it is profit or loss, it will make your mentality unbalanced and ultimately affect your decision-making and outcome.

I will only use 2%-5% of the principal as a basic position and use 20 times leverage. This can not only ensure the safety of funds, but also allow me to be at ease in the market.

Those traders who dare to use 100 times or even 125 times leverage, I can only say that they are seeking their own death. Whether it is futures, stocks or contracts and spot trading in the currency circle, it is a game of human nature. Leverage only magnifies your greed.

I have recently started to lay out freshness.

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