The first major principle is product selection and timing: study good targets and understand how to buy them.
There are several key indicators for buying good targets:
1. Fundamentals; if the fundamentals are good, it can be held for the long term. This way, at worst, you will be stuck for 3-4 years, but in the next bull market, you can still earn several times.
2. Price; the buying price is not high and is at a relatively low level.
3. Timing; if there is a trend later, recovering the cost will be faster. For example, if there is strong positive news later or if you buy at the end of a bear market, it will be better than buying at the beginning of a bear market. After all, at the beginning of the bear market, your money will be tied up for 1-3 years, but buying at the end of the bear market will see the trend rise quickly, and your money will multiply rapidly.
The second major principle: clearly understand the top indicators and make large positions based on buying low and selling high throughout the entire bull market cycle.
I personally use the core bull market top indicators in internal communities:
1. BTC market capitalization ratio; at the bull peak, there is a high probability of breaking below the previous low of 36. If it breaks below 40, pay special attention. For example, 9.7 is a significant drop after the market cap ratio hovered around 40.
2. ETH/BTC ratio; if it breaks above 0.1, the target is around 0.12, and it may even reach 0.14-0.2. If it breaks above 0.1, pay special attention to the risk of a significant correction.
The third major principle is coin-based; coin-based is a very important core idea for me. I use a coin-based approach to earn coins through grid trading.
I am coin-based; although many people buy various altcoins, in the end, 96% of people cannot outperform those who hold Bitcoin. Therefore, my goal is to earn Bitcoin from the market's ups and downs, especially by selecting good varieties to earn Bitcoin. I open Bitcoin-based grid positions using quantitative grid methods to lower my risk. When other coins rise relative to Bitcoin, I will sell them in batches to buy Bitcoin. When the market falls, I will sell Bitcoin to buy these coins (because Bitcoin tends to fall less than other coins).
The fourth major principle: combine long and short trading systems; for example, my long position is for holding coins, and I absolutely do not do short-term high selling and low buying.
I use quantitative grids to automatically help me do high selling and low buying for my short positions. The profits from grid high selling and low buying are similar to the profits from holding my coins.
The fifth major principle: patience; lay low and hold coins patiently without chasing highs.
You must be patient; valuable coins will definitely rise, but sectors will rotate. It is impossible to catch all the coins that surge.
The coins in hand remain motionless. When I want to sell them to chase other coins, I should carefully research the coins I bought, their team, business, sector, official website, and community (Twitter, Instagram), etc.
Don't sell everything just because you've waited too long and it has risen slightly; after waiting so long, you might miss out on its significant rise.
As the saying goes, guarding coins is harder than guarding chastity. The best way to hold coins is to open a grid, especially a coin-based grid, which can outperform simple coin holding and has relatively lower risk.
The sixth major principle: you must think clearly about your trading rhythm and trading cycle perspective.
Many people watch the market every day but don't know what cycle they should be looking at. If you look at the minute chart, it’s a minute-by-minute transition between bull and bear, which results in poor sleep and appetite.
Generally, look at the larger cycles first, and then go down to smaller cycles.
If you are a long-term holder, look more at the weekly chart, then the daily chart, and the four-hour chart, occasionally check the 1-hour and 30-minute charts mainly to look for buying opportunities. Generally, avoid looking at the 1-minute and 5-minute charts. I used to make a big mistake by frequently looking at the 1-minute and 5-minute charts, which made me anxious. Short-term trading is likely to reduce the number of coins; many people can't even earn fiat currency, let alone increase the number of coins they hold.
Look at the time cycle of the K-line to determine the maximum holding time: 1 minute, dozens of minutes; 5 minutes, several hours; 15 minutes, one or two days; 1 hour, several days; 4 hours, several weeks.
Strong recovery, assets doubled! Stay ahead during rainy days, layout in advance, and easily reap great profits.
Keep an eye on: ALT ZKJ BID