Share some knowledge about cryptocurrency trading
1. If you buy 10,000 U of a certain coin when it is 10U, and then buy another 10,000 U when it falls to 5U, the cost at this time is 6.67U, not the imagined 7.5U.
2. If you have 100,000, and you leave the market when you make 1% every day, based on 250 trading days per year, your assets will reach 1.3232 million in a year, and you will make 10 million in two years.
3. If the probability of investment success is 60%, and you invest 100 times in a row, and set the stop profit judgment and stop loss to 10%, then the final rate of return is 300%
4. If you enter the market with 10,000 U, and make a profit of 10% each time, you can reach 1 million U on the 49th day, 10 million U on the 73rd day, and more than 100 million U on the 97th day.
In practice, many people cannot do the above 4 points. The fundamental reason is that they cannot control their greed. Letâs not talk about spot, most of the valuations are close to 0, so letâs talk about contracts.
For contract trading, you need to have your own position management and capital management, and open a position based on your own tolerance.
So, what is position management and what is capital management?
Capital management: If you have 10,000 U of funds, many novice players use 20%-30% of the principal as the basic position. At that time, whether it is profit or loss, it will have a very big impact on your mentality, thus affecting the final outcome.
My personal opening habit is to use 2%-5% of the principal as the basic position, with a leverage of 10 times. Those who use 100 times or even 125 times leverage at every turn are tantamount to seeking death.
Whether it is futures or stocks, or contracts in the currency circle, spot is a game of human nature. Leverage is to magnify one's own greed. Everyone has his own greed. If greed is infinitely magnified, it will eventually be swallowed by his own greed.
Therefore, trading must be done with your own capital management and position management, which is the foundation for long-term profit.
