🚀🚀Exploring the Crypto World: Those Unspoken Yet Extremely Important Techniques and Secrets
1. The Subtlety of Cost Calculation
Cost dilution is not as intuitive as it appears. With an initial investment of 10U at a unit price of 10,000 U, if the coin price drops to 5U and an additional 10,000 U is invested, the actual average cost is 6.67U. Accurately grasping this calculation method helps in rationally planning positions amidst market fluctuations, avoiding misjudgment of holding costs, and providing a scientific basis for subsequent buying and selling decisions.
2. The Great Power and Challenges of Compound Interest
The effect of compound interest is like a double-edged sword. Starting with 100,000 U, a daily return of 1% sustained over 250 trading days in a year will increase assets to 1,323,200 U after one year, and could reach tens of millions after two years. However, behind this seemingly attractive outcome lies the enormous challenge of maintaining consistent profits, as market volatility makes it difficult to keep a fixed rate of return.
3. Probability, Take Profit and Stop Loss, and Emotional Control
With a success rate of 60% in investments and setting a 10% take profit and stop loss, the total return rate after 100 trades can reach 300%. However, this ideal outcome relies on strict adherence to the trading plan. The highly volatile crypto market can easily trigger emotional fluctuations, requiring investors to overcome fear and greed, calmly respond to market changes, and adhere to trading discipline.
4. Greed: The Hidden Fatal Trap
Starting with 10,000 U, theoretically, achieving a 10% profit each time could lead to reaching 1 million U on the 49th day, breaking ten million on the 73rd day, and surpassing 100 million on the 97th day. However, in reality, very few can achieve this goal, as human greed is difficult to restrain, often leading to misjudgments in decision-making due to excessive greed, resulting in losing everything.
5. Key Points in Position Management for Futures Trading
In futures trading, position management and capital management are crucial. Most people use 20%-30% of their capital as the base position, while a more prudent strategy is to only use 2%-5% of the capital combined with 20x leverage. This approach significantly reduces volatility risk, minimizes emotional decision-making interference, and enhances survival ability and profit potential in futures trading.
Finally, everyone can consider entering a small position in puppies (Ethereum chain), as mentioned in Musk's tweet, it should be promising. $ETH $DOGE $SHIB #山寨币热点 #meme板块关注热点