How can you improve your winning rate and tolerance rate when investing in the cryptocurrency circle?
1. Lower your expectations:
You fantasize about getting rich quickly and making 100 times a year, but it is actually a very difficult thing to achieve. Luck and ability are indispensable. There are many people with desires, but too few people with ability. Most people who want to get rich will eventually choose to go all-in to gamble on their luck: if you encounter a small project, go all-in; if a teacher calls an order, go all-in. Your system is likely to be fragile, and your account will shrink in rounds of games.
Believe that you can reach the end slowly, at least you will be more rational when making decisions. You have rationality in the market, which can ensure that you will not be cut too hard.
2. Calculate odds + position management, both are indispensable:
Even if you think the odds of a certain investment are high, you go all-in, and there is still a risk of bad luck causing the principal to suffer a large drawdown or even bankruptcy. You can completely use code to simulate this process and calculate the best investment position under a certain profit and loss ratio and a certain winning rate. Even if your winning rate is as high as 90% and the odds are 1:1 (generally speaking, with such a high winning rate, the profit and loss ratio is much lower than most people imagine), as long as you go all-in, there is still a great possibility of a large loss.
Position management is the core of your life-saving. On the basis of position management, it will be much better to invest again.
a. If you are looking for a project, the odds of many projects are actually very easy to calculate and are quite high. You can invest up to 5% of the principal in each project, and stop loss/exit when the fundamentals change. This can make you lose dozens of times in a row; if you don’t make money for dozens of times, then work hard and don’t force yourself to do things you are not good at. A single loss will not affect you. Making money once is enough for you to lose 10 times. Relying on mathematics rather than luck, the principal can always go up slowly.
b. If you do trading, avoid betting on long and short positions, and choose a method with high odds, you can still outperform most people. Part of the position is cash, waiting for a big drop to buy the bottom. According to historical data, the cryptocurrency market will have a significant rapid drop every six months. After a 20% drop, you can always get a good return after buying; part of the position is for new listings and arbitrage. If there is no market, you can drink some soup, and if there is a market, you can eat meat.
In this way, you can free your investment behavior from prediction, and change from predicting the market to following the market.Although the return is unlikely to be as good as that of a gambler, the security and stability of your investment will be much higher, and you can live longer and better than 95% of gamblers.
Of course, there are also thresholds for this. a. It is hard work and requires execution. 2. It requires restraint of desire. Most people who are used to the sweetness of poker cannot do it.
3. Off-site cash flow:
Buffett's insurance float is his cash flow, which is also the moat of Buffett's investment. With the supplement of off-site cash flow, your investment mentality will be calmer, easier to make rational decisions, and more willing to gamble in the face of high odds opportunities, and the tolerance rate of investment will be multiplied.
Therefore, don't indulge in gambling on long and short positions, and improving your own abilities is the top priority. Love flies to those who are not short of love, and money will flow to those who are not short of money. Don't rush to get money.
Of course, after saying so much, most people won't listen. These lazy people will still have fantasies, imagining that they can get rich by just tapping their fingers when they find someone to call orders every day, or imagining that they can become gods who can control the market and make money by learning some technical analysis.
The tall building rises from the ground, and today's comment is missing you! Thank you for your support
