1. If you buy 10,000 U of a coin when it is 10U, and then buy another 10,000 U when it drops to 5U, the cost at this time is 6.67U, not the imagined 7.5U.

2. If you have 100,000 yuan and leave the market when you make 1% every day, assuming there are 250 trading days per year, your assets will reach 1.3232 million yuan in a year. After two years, you will have made 10 million yuan.

3. If the probability of successful investment is 60%, and you invest 100 times in a row, and set the take-profit and stop-loss levels to 10%, then the final rate of return will be 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 in the 49th day, 10 million U in 73 days, and over 100 million U in 97 days.

If we try to put the above into practice, not one person out of ten thousand can do it. The fundamental reason is that they cannot control the greed in their hearts.

I won’t talk about spot trading, 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 ability to bear. So, what is position management and what is capital management?

Fund management: If you have 10,000 U of funds, many novice players or some old players will use 20%-30% of the principal as the basic position.

At that time, whether it is profit or loss, it will have a huge impact on your mentality, thus affecting the final outcome.

The best 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 will are tantamount to seeking death.

Whether it is futures, stocks, or cryptocurrency contracts, spot trading is a game of human nature. Leverage is to magnify one's own greed. Everyone has their own greed. If you magnify your greed infinitely, you will eventually be swallowed up by your own greed.

Therefore, when trading, you must have reasonable capital management and position management, which is the basis for long-term profit.
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