A change in the market is imminent; it could either be a waterfall drop or a sideways decline and consolidation. If a significant pullback occurs, it is undoubtedly an excellent opportunity for bottom-fishing, but capital planning plays a crucial role.

Should I choose to enter fully? Or five layers of positions, seven layers of positions? Or should I wait with no positions for a significant drop before taking action?

Just today, I carefully created a special table to calculate the approximate returns of different positions in a bull market (this is just an extremely simple model and does not include many variables, only for preliminary judgment).

Assuming there is another significant pullback in the future, I compared the returns of fully invested versus five layers of positions. If the remaining 50% position can enter at the correct bottom-fishing point, the returns will far exceed those of a fully invested position.

However, as the bottom-fishing positions rise, the returns will gradually level off, and if no bottom-fishing is done, chasing highs on the right side may yield lower returns than a fully invested position.

Of course, there may not be a significant pullback, which is also an uncertainty factor.

Therefore, regardless of your current position, as long as you strictly formulate a strategy, select high-quality coins, and hold on firmly without outside interference, you can make a fortune in a bull market (in the later stages of a bull market, you should gradually exit from the top and not get too attached to positions).

For myself, in the past month, BTC has been surging fiercely, switching flexibly between 50% to 70% positions; my long-time followers know that I have already liquidated my positions. However, I occasionally engage in ultra-short trading because the current market situation is not suitable for a larger strategy. The market continues to decline, and if a significant drop occurs, I will buy at low prices to increase my positions. In this way, I won’t have to worry about gains or losses!

The current market situation does not support us going all in to gamble. Observing the sector behind the coins and formulating strategies based on market trends requires more time and energy. Which coins can be held for the long term? Which coins are only for short-term operations? This will directly determine the final return rate of the subsequent bull market.

It is important to know that in a bull market, it is not just about randomly buying a coin and holding it to get rich (from December of the year before last to April of this year, many people achieved returns of 3 to 10 times during this bull market, but most long-term investors have already given back all their profits by now. Our team had already liquidated all positions in April, and there have been multiple reminders in the plaza; this decision was made after comprehensive judgment from various aspects and has proven to be extremely correct). Therefore, more wealth is reserved for those who are prepared, have strategies, execution ability, and a broader perspective.

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