Why do some people go bankrupt when speculating in cryptocurrencies?

The more the price falls in the crypto circle, the lower the cost will be?

Some people say that if you buy 10,000 U when the value of a certain currency is 10U, and then buy another 10,000 U when it falls 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 level, 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 interest 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.

For 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 cryptocurrency contracts or spot trading, it is a game of human nature. Leverage only amplifies your greed.

#美联储何时降息？ #非农就业人数高于预期 #币安合约锦标赛