Investing is essentially a realization of cognition. Before investing, we must think carefully and make sure we have a full understanding of the investment project. The following questions are worth our repeated consideration:
What is the uniqueness? How is this investment different from other investments? What are its unique advantages? What is the growth driver? What factors may drive its price up? Is it market trends, technological innovation or other? What is the demand support? What is supporting the demand for this investment? Is it consumer preferences, policy promotion or industry development trends? Who will take over in the future? Why would someone take over this investment after me? What values do they see? Portfolio allocation? If you decide to invest, what share of the entire portfolio should it occupy?
After seven years of experience in cryptocurrency trading, I have come to a profound understanding of the importance of controlling drawdowns. In the world of investment, short-term fluctuations may bring attractive profits, but long-term stability is the key to success.
Let's use a simple mathematical example to illustrate this. Suppose you have 1 million yuan. If it rises 100% first and then falls 50%, your funds will return to the starting point, which is still 1 million yuan. But if it falls 50% first and then rises 50%, your funds will only be 750,000 yuan. This means that even if the price rises and falls by the same amount, the different order will lead to huge differences in the final results.
This example tells us that in investment, controlling drawdown is more important than pursuing short-term high profits. A steady annualized rate of return, such as a stable 30% per year, may not seem high, but in the long run, its cumulative effect will be amazing. As the stock market guru Buffett said, his success did not come from short-term huge profits, but from maintaining a profit of more than 20% for 47 years.
Therefore, in the journey of cryptocurrency trading, we must remain calm and rational. We must do a good job of position management, carefully select investment projects, and control risks. Only in this way can we move forward steadily on the long-term investment path and achieve considerable returns. Let us believe in the power of compound interest, believe in the power of stability, and move towards a successful investment path together.
Pay attention to view the pinned v, bull market strategy layout, share various passwords, and take you to learn more about 100x coins! $BTC $ETH $BNB #Mt.Gox将启动偿还计划 #美国PCE数据将公布 #币安合约锦标赛
