Brothers, hello everyone, I am trader Zhu Yidan. The contract has been trapped these past few days, and the selected coins are obviously weaker than other altcoins. The main reason is facing two unlocks. I actually noticed this when buying, but it was only about 1%, so I underestimated its impact.
The unlock period of altcoins has a significant impact on coin prices, especially before large unlocks, which will continuously suppress coin prices. However, an interesting phenomenon is that often after unlocking, the coin prices are likely to rise, even starting a bullish trend. I have observed similar situations in multiple altcoins.
The underlying reason is that negative news turns into positive news. The unlocked chips are actually for the main players; they need to have chips in hand to have the motivation to drive up and distribute.
The Binance app thoughtfully provides a token unlock schedule, and many useful data in the app can be explored and understood, which is very helpful for selecting coins.
This trade involved many mistakes. The logic for buying was based on betting on the impact of Ethereum's upgrade on the entire Ethereum layer two. Currently, there is no significant effect, and Ethereum has not truly broken out of the consolidation range. Once again, I replaced actual trends with subjective assumptions, turning a contract that was originally profitable by 4000 USDT into a loss of 20000 USDT, which is the biggest failure.
The pattern is not wrong, having predictions is not wrong, but neglecting the actual objective market trends is a big mistake. The prudent way is to have predictions, first observe whether the market moves as expected, and only intervene when the market provides confirmation. This is equivalent to giving up part of the early profit in exchange for greater certainty.
For example, in this trade, when I make a profit of 4000 USDT, I can completely secure half of the profit to set the stage, thus ensuring I am in a winning position. If it drops back, it indicates that the market does not currently recognize this logic, and at this point, I must respect the market and either abandon this operation or choose another timing.
The advantage of contracts lies in flexibility. One must always maintain the initiative to enter and exit. Sometimes, cutting losses is necessary to maintain this initiative. Holding onto positions can become a cage of flexibility, leading to chronic liquidation or missing many better opportunities. Setting stop-losses, cutting losses, and locking in part of the profit pattern are all aimed at maintaining this flexibility. I try to understand the principles behind this more deeply so that they can be implemented in actual trading.
Tonight at 9 PM, there will still be a live broadcast in Binance Square. Friends who are interested can come and discuss this issue together!
