In the cryptocurrency world, there are some obscure knowledge or techniques that are often unknown to people, which are important to understand. Today, I would like to share a few:
1. Cost averaging is not as simple as it seems

For example, if you invest 10,000 U at a coin price of 10 U and then invest another 10,000 U when the price drops to 5 U, your average additional cost is actually 6.67 U, rather than the 7.5 U that many people think. This situation is very common in market fluctuations, and understanding this cost calculation method is helpful for managing positions.

2. The compounding effect is astonishing

Assuming you have 100,000 U and earn 1% daily before exiting. If you can maintain 250 trading days in a year, then your assets will grow to 1,323,200 U after one year. Continuing for two years, your assets could even reach tens of millions. Of course, this result is based on stable conditions, but the challenge behind it is how to continuously harness this compounding effect.

3. The relationship between probability and take-profit and stop-loss

If your investment success rate is 60%, and you set a take-profit and stop-loss at 10% each time, after 100 trades, your total profit can reach 300%. However, this premise is that you strictly follow your trading plan without being influenced by market volatility, especially maintaining composure in highly volatile markets.

4. Greed is the biggest enemy

Assuming you start with 10,000 U and earn 10% each time, by the 49th day, your assets could reach 1 million U, and by the 73rd day, it could exceed 10 million U, with a chance to surpass 100 million U by the 97th day. However, in reality, very few people can achieve this because most cannot control their greed during this process, leading to failures along the way. This is why many traders find it difficult to sustain their profits over the long term.

Contract trading and position management

In contract trading, position management and capital management are key to success or failure. Many people use 20%-30% of their principal as the base position, but I personally prefer to use only 2%-5%, and apply 20x leverage to effectively control risk and avoid emotional decisions caused by excessive fluctuations.

Revealed! Ethereum's Evening Support Level, Seize the Opportunity to Get Rich Overnight!
#加密市场反弹
Ethereum has now broken through the upper resistance level, reaching around 3420.
Last night it did drop a bit, but not too much, and then it bounced back, charging upwards.
This afternoon, it's estimated to fluctuate around 3400 to 3450, you might try making a short trade, and then check the situation tonight, wait for it to drop a bit more, and seize the opportunity to enter the market.

This afternoon, the upper resistance levels are around 3450, 3490, and 3520,
if it drops tonight, the support levels are around 3350, 3230, and 3150.

According to my thinking, you can basically earn a little every day, but no one can guarantee a win every time.
I've been in practical trading for several years, experienced three bull-bear transitions, and have five years of experience in unlocking positions, if you like me, just hit follow.
$ETH