Cryptocurrency Trivia
Cost Averaging: Don't be deceived by appearances. For example, if you buy $10,000 when the price is $10, and add another $10,000 when the price is $5, your average cost is $6.67, not $7.5. Understanding this is crucial for managing your positions.
Compound Interest Effect: With a principal of $100,000 and earning 1% daily, your asset can grow to $1,323,200 after 365 trading days in a year. If sustained for two years, the assets could reach tens of millions. The challenge lies in maintaining the compounding effect.
Probability and Profit Taking/Loss Cutting: With a success rate of 60% and profit taking/loss cutting of 10% each time, your total return can reach 300% after 100 trades. The key is to strictly follow your trading plan and stay calm.
Controlling Greed: Starting with $10,000, earning 10% each time theoretically allows you to reach $1,000,000 in 49 days, surpass $10 million in 73 days, and exceed $100 million in 97 days. However, in reality, very few achieve this because greed leads to failure.
Contract Trading and Position Management: The above techniques are particularly important in contract trading and position management and should be flexibly applied based on actual conditions.
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