The profit and loss ratio is something that must be calculated frequently. It is recommended that friends in the cryptocurrency circle engrave this calculation into their DNA.
1. When you encounter an uncertain market, you check and find that traders have different opinions. You calculate the profit and loss ratio, because you are essentially gambling in the cryptocurrency circle, so you bet that the one with the larger profit and loss ratio is more in line with the essence. On this basis, if you are good enough, you can also calculate the profit and loss ratio of the banker to speculate on the banker's actions (it is not recommended for people without project experience to do this calculation, as it is easy to fall into a pit. It is also not recommended for people who have not experienced two complete bull and bear markets to do this calculation, as they will also fall into a pit.
2. The profit and loss ratio should also be calculated in daily life. For example, many people asked me whether I should quit my job and work in the cryptocurrency circle. In fact, for this question, you can completely calculate your income in traditional enterprises, plus the expectation of whether a traditional enterprise can continue to develop healthily in the future, and then compare your own profitability in the cryptocurrency circle to calculate the profit and loss ratio. For example, my college classmate works in the construction industry. It is the limit to earn 200,000 yuan a year after working hard. The construction industry is going downhill, and it will only be more tiring next year, and the industry has begun to dismiss old employees. He can earn 5K dollars a month in the cryptocurrency circle steadily. Assuming that he can earn 50,000 dollars a year, his maximum If he can finally bring out 80%, then he should quit his job in the construction industry for a year and go all-in in the bull market.
3. For short-term contracts, you must calculate the profit and loss ratio. Because if you force yourself to calculate the profit and loss ratio, you are actually giving yourself a stop loss and stop profit target. This is the first military rule of short-term contracts-"make a plan and strictly implement it."
No trader does it blindly without a plan.
4. On the basis of 3, if you calculate the profit and loss ratio more, you will find that in the bull market of the cryptocurrency circle, you often don't need contracts. The buddy I forwarded the post below is right. I once emphasized that the so-called bull market is a market that makes you "Fuck, how can I make so much money with spot?" Still taking SOL as an example, for example, if you think BTC can reach 10W, then you can actually estimate how much SOL will be, and then hold your SOL. Doing this will make you less anxious. Why did many mid-level players in the cryptocurrency circle lose their money in the end? In fact, it is because in the market at the end of the bull market, the myth of getting rich quickly is flying all over the sky, which brings you anxiety and makes you make many wrong decisions.If you stick to the decision you made when you were calm because of the profit and loss ratio, you will actually place the shipping order early and make money that is not affected by the atmosphere of anxiety.
Let me say it again, you come to the cryptocurrency circle to make money, not to see any fucking beauties or to chat. The profit and loss ratio is close to the essence of the cryptocurrency circle - the casino. It is a planned product. So, calculate the profit and loss more often, my friend.
