Common misunderstandings of novices---inverted pyramid-style position increase
First, let me explain what inverted pyramid-style position increase is:
When BTC was $90,000, I opened a long position of 1,000U. The market was good, and BTC rose to 96,000, and I was very happy. After a round of correction, BTC reached 94,500. I felt that the correction was in place, so I added 2,000U to go long. Sure enough, I caught this opportunity, and the market soared all the way to 106,000, and then pulled back to 104,000 and hovered. I felt that I was invincible. I decisively added another 5,000U, ready to make a big move. As a result, it went up to 108,000 and then directly fell to 99,000.
During the whole long process, BTC rose from 90,000 to 99,000, a 10% increase, but let's calculate my rate of return:
1000*(99,000/90,000)+2000*(99,000/94,000) + 5000*(99,000/104,000) - 8000 = -34U
It was a waste of time and I lost a pig's trotter meal
If your mentality collapses and you do the opposite blindly, it will be even more terrible.
Remember: Don't add positions blindly! If you initially use 20% of your positions to open a position, please always keep in mind the role of these remaining positions: they help you level out your costs after you make the wrong move, find opportunities to recover your investment and quickly leave the market.
Trading is not a full-time job, and you won't get rich overnight. What we pursue is a winning rate of even 51%.