In the crypto world, there are some little-known knowledge or skills that are often overlooked, but are very important. Today, let's share a few:

1. Dilution of costs is not as simple as imagined.
For example, if you invest 10,000 U at a coin price of 10U, and then add another 10,000 U when the coin price drops to 5U, your average cost is actually 6.67U, not the 7.5U 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 compound interest effect is amazing
Assuming you have 100,000 U, you will exit if you earn 1% per day. If you can maintain 250 trading days in a year, your assets will increase to 1.3232 million U after one year. Continuing for another two years, the assets can even reach millions. Of course, this result is based on a stable rate of return, but the hidden challenge behind it is how to sustain this compound interest.
3. The relationship between probability and take profit/stop loss
If your investment success rate is 60%, and you set stop-loss and take-profit at 10% each time, after 100 trades, your total return can reach 300%. But this premise is that you strictly adhere to your trading plan, not be affected by market fluctuations emotionally, especially in high-volatility markets.
4. Greed is the biggest enemy
If you start with 10,000 U, and earn 10% each time, your assets will reach 1 million U on the 49th day, over 10 million U on the 73rd day, and possibly even over 100 million U on the 97th day. However, in reality, very few people can achieve this because most people cannot control their greed during this process, leading to a crash halfway through. This is why many traders, even if they make a profit, struggle to maintain it in the long run.
Contract Trading and Position Management
In contract trading, position management and capital management are the key factors determining success or failure. Many people use 20%-30% of their capital as the basic position, but personally, I prefer to use only 2%-5% and leverage of 20 times. This can effectively control risks and avoid emotional decision-making caused by excessive volatility. #荣誉积分新年抽奖，赢Macbook、精美周边等好礼！ #$VINE 上涨超50%，你持有了吗？##你最近购入哪个山寨币？ #BTC #ETH