Inventory of 4 unknown trading knowledge in the cryptocurrency circle
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 leave the market when you make 1% every day, based on 250 trading days per year, your assets in a year can reach 1.3232 million, 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,
If the above is to be achieved in practice, no one among 10,000 people can do it. The fundamental reason is that they can't control their greed. I won't talk about spot, let's talk about contracts today.
For contract trading, you must have your own position management and capital management, and then open a position based on your own tolerance. So, what is position management and what is capital management?
Position management, capital management: If you have 10,000 U of funds, many novice players or some old leeks 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 20 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 you magnify greed infinitely, you will eventually be swallowed by your own greed.
So trading must be done with your own capital management and position management, which is the foundation of long-term profit.
By the way, I started to pay attention to the PEOPLE coin last year. It was basically at the bottom at that time. I remember that if I bought it at that time, it was almost ten times higher than the current market price. It took more than half a year. I personally think that the current price of this kind of altcoin will definitely not be maintained for a long time. After all, this coin currently has no practical application scenarios.Speaking of actual application scenarios,
What is very interesting about this bull market is that no matter how luxurious your star lineup is or how strong your technology is, it is not as real as the price increase. Most people are concerned about prices. When it comes to application scenarios, the lessons of EOS in the past are still vivid.
Quoting Sun Yuchen, the dark lamp in the currency circle, value investment is nothing, and all-in MEME lives in the palace. This sentence is a good reflection.
So in this bull market, mainstream chips such as BTC and ETH must be available, and part of the funds can be invested in the MEME sector. After all, there are still many myths of wealth creation in the currency circle in this bull market.
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