A fan asked, to prevent experiencing a 50% drop, wouldn't it be better to reduce positions at a certain high point?

In fact, when it comes to investment issues, we need to conduct a comprehensive reasoning and thinking from various angles, and we cannot just make short-term, one-time judgments. The logical reasoning needs to be not only comprehensive but also continuous, with perspectives from different angles and long-term dynamic reasoning and judgments.

For example, let's provide a comprehensive reasoning response to this question:

1) As long as you buy the coins, you can hardly guarantee that they won’t drop by 50%, regardless of whether you think it’s a high or low point; buying coins is to make a profit, and buying low and selling high is certainly true, but have you considered this? What counts as high and what counts as low? Besides making a profit from the price difference, are there any off-exchange profit forms, such as funding rates?

2) Moreover, even if you reduce your position at a certain rising point, it cannot guarantee that it will drop by 50%. However, the potential loss you face is missing out on gains. No matter where you reduce your position, you are still facing the possibility of continuing to rise by 50% or continuing to drop by 50%. So if you completely focus on the price, you will be at a loss.

3) Even if you reduce your position and it drops by 50% or close to 50%, there’s a possibility that you may not buy it back, and then it could multiply several times; or after you sell it, it could rise several times and then drop again. In short, it’s difficult to predict. Once you can’t buy it back and you keep wanting to reduce your position with a mindset of making short-term trades, it will definitely increase your misjudgment chances. Eventually, you will surely lose the best opportunities and end up with those less favorable ones or hold onto the wrong ones.