Someone asked me what the underlying logic of my investment is?
Regular investment is actually a form of capital management in trading,
theory comes from the gambler's game theory.
A game of flipping a coin and guessing heads or tails,
the rule is that if guessed right, you get 1 to 1, if guessed wrong, you lose everything.
If you bet all your capital every time,
you'll likely lose everything within 10 rounds.
But if you divide your capital into 100 parts, or 1000 parts,
and bet one part each time, you can likely keep playing.
If you adjust the odds a bit, guessing right gives you 1 to 1.1, guessing wrong means losing it all, and if you invest your capital divided into 100 parts, your final profit would be approximately 2.1*50-100=5, which is a 5% profit. Doesn’t it feel pretty similar to regular investment returns?
Looking back at the cryptocurrency market, since the birth of Bitcoin, there has been an overall upward trend, so as long as you persistently invest regularly, the return will definitely be positive.
So what makes you money is not the method of regular investment, but rather the development of Bitcoin and the market conditions brought about by macro policies.
Regular investment, at its core, is merely a way to manage funds to reduce risk.
The pursuit of seasoned gamblers is not just to keep playing; their goal is simply to win money.
For example, someone like me, who has a very low gambling desire, continues to buy in without thinking.
