In the crypto world, there are some cold knowledge or skills that are often not known, but very important. Today, let's share a few:

1. Dilution of costs is not as simple as imagined
For example, if you invest 10,000U when the coin price is 10U, and then add another 10,000U 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 position management.
2. The amazing compound interest effect
Assuming you have 100,000 U, you will exit if you earn 1% per day. If you can maintain 250 trading days a year, your assets will increase to 1.3232 million U after one year. Continuing for two more years, 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 stop loss and take profit
If your success rate of investment is 60% and you set a take profit and stop loss of 10% each time, after 100 trades, your overall return on investment can reach 300%. But this premise is that you strictly follow your trading plan, not be influenced by market volatility, 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, surpass 10 million U on the 73rd day, and even have the chance to exceed 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 mid-way crash. This is why many traders, even if profitable, find it difficult to sustain in the long run.
Futures Trading and Position Management
In futures trading, position management and fund management are the key to success or failure. Many people use 20%-30% of the capital as the basic position, but I personally prefer to use only 2%-5%, and use 20 times leverage. This can effectively control risks, avoid emotional decision-making caused by excessive fluctuations.#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 #GT