Simple things, repeated, are the real profit
Many people think that experts rely on advanced techniques and complex models. To put it bluntly: it's all nonsense.
The real veterans who can survive in the cryptocurrency space do extremely simple things,
So simple that you might doubt: "Is this it? Can I really get rich?"
But the reality is they rely on this kind of model, making their way from 2000u to 500,000u.
It's not because they are smart, but because they don't take unnecessary risks.
First, let's clarify the truth about high leverage: high leverage essentially comes down to two points, there is no third option.
First: Spikes, specifically for those who don't comply. Who does the exchange prefer?
It's you brave ones who dare to use 50x, 100x leverage.
They won't move against you during the day, but at midnight, one spike, and your principal is directly reclaimed.
Second: Your mentality will explode.
Using 100x, with a 1% price fluctuation, your heart rate skyrockets.
In this state, how can you talk about discipline? About execution? About being an expert?
Remember a few iron rules:
The lower the leverage,
The more you dare to invest;
The more you dare to invest, the more qualified you are to ride the trend.
Counter-trend positions usually end in three types of failures.
First type: Stubborn type
"I don't believe it won't drop." What happens? It not only doesn’t drop, but it also buries your account.
Second type: Averaging down type
"If it drops again, I will average down." By the end, it’s not a rebound, it’s running out of funds.
Third type: Mystical type
"Golden cross! It’s going to reverse!" The market maker swiftly responds with a big bearish line: teaching you to start over.
So one thing: better to miss out than to lose everything.
The truly correct approach: split positions + low leverage
Splitting positions is not mystical, it’s a life-saving talisman.
Let’s take the simplest example. You have 30,000 U:
Don’t put it all at risk, split it directly into 3 parts,
Each part 10,000 U.
Only use 1 part to open a position each time, treat the remaining two parts as if they don’t exist.
If you use 10x leverage on 10,000 U, a 10% drop will evaporate your account directly.
But if you only use 5x, it will only blow up at a 20% drop, directly doubling your margin of error.
Splitting positions also has a hidden bonus: it helps manage emotions.
When someone loses money, what do they tend to do? Revenge trading.
The result is often: the more urgent, the bigger the loss; the bigger the loss, the more they want to turn it around; ultimately it leads to a complete wipeout.
You can continue to chase high leverage and gamble, or you can choose a steadier path, slowly building your account.
Simple things, repeated, the path is right here, whether you walk it or not, is up to you.
#PIPP #ETH(二饼)