In the crypto world, there are some obscure knowledge or small tricks that may seem insignificant but are actually quite important. Today, let's talk about a few of them:

Cost allocation, it's not that simple.
For example, suppose you invested 10,000 U when the coin price was 10 U, and later it fell to 5 U, and you added another 10,000 U. At this point, your average cost is 6.67 U, not 7.5 U as many people think. This situation is quite common in the market, and understanding this cost algorithm is quite helpful for managing positions.
The compound interest effect is quite scary, really.
If you have 100,000 U in hand and stop making profits at 1% per day. If you can persist for 250 trading days a year, the year-end assets can be doubled to 1.3232 million U. If you persist for another two years, the assets can reach tens of millions. Of course, this is based on stable returns, the difficulty lies in how to maintain this compound interest rise.
Probability, take profitstop loss, there is a trick in it
Assuming you have a 60% chance of winning on your investment, you should take profit every time you make 10% and stop loss at 10%. By doing this 100 times, the total return can reach 300%. However, the premise is that you must strictly follow the trading plan, not be led away by market Fluctuation, especially when the market Fluctuation is significant, you must remain calm.
Greed is the biggest stumbling block.
For example, if you start with 10,000 U, and earn 10% each time, your assets will exceed one million in 49 days, tens of millions in 73 days, and possibly even billions in 97 days. However, in reality, few people can achieve this because most people cannot control their greed and end up falling. This is also why many traders make money but cannot hold on to it.
Futures Trading and Position management
Doing Futures Trading, Position and capital management are too important. Many people like to use 20%-30% of the principal to Enter a Position, but I personally prefer to use only 2%-5%, and then add 20 times leverage. This way, the risk is controllable, and won't be messed up by large Fluctuation.
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