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In the world of Digital Currency Trading, there are some little-known truths that may overturn your understanding. Let's explore these four key points together:
First of all, the calculation method for the cost of adding to a position may be different from what you imagine. For example, if you invested 10,000 when a coin was priced at 10, and then invested another 10,000 when it dropped to 5, your actual holding cost is not simply the average of 7.5, but 6.67. This is because you bought more coins at the lower price, which brought down the overall cost. This detail is often overlooked, but it is crucial for accurately assessing your investment situation.
Secondly, a stable daily return of 1% may seem unremarkable, but it actually contains astonishing power. If you can achieve a 1% return every trading day, your investment could see remarkable growth over the course of a year. This demonstrates the powerful effect of compound interest. However, the real challenge lies not in the calculations, but in maintaining the self-discipline to "take profits when you see them."
Thirdly, even if your investment success rate is only 60%, as long as the strategy is appropriate, it is still possible to achieve considerable returns. Suppose you make 100 trades, with each take profit and stop loss set at 10%, you could ultimately achieve a 300% profit. This mathematical model seems simple, but in reality, many traders struggle to execute even the most basic take profit and stop loss.
Finally, it is important to recognize that relying solely on luck for trading often leads to dramatic ups and downs. Trading without discipline and strategy may bring you in quickly but can make you leave even faster.
Overall, successful trading requires a deep understanding of these principles, as well as strict self-discipline and execution. Only in this way can one achieve long-term success in this market full of opportunities and challenges.