Yesterday, I was chatting with a friend who is deeply trapped this round, mainly in altcoins. He asked if there’s still hope for the altcoin season. Today, I’ll briefly discuss some fundamental principles of investment exit.

Everyone understands the current market state; most altcoins are still heading towards zero, and the market doesn’t need this many assets. Even if the altcoin season arrives, it doesn’t mean your coin will rise significantly.

My friend made a considerable amount of money from small coins in the last round and regrets not exiting at last year's peak; many others likely feel the same way. Even in spot trading, one should think about exit strategies when buying; this is basic investment knowledge, yet many people stumble here. They think they have it all figured out, planning to exit after a 10x gain, which can only be considered one of the reference conditions for exiting.

The essence of investment is the game between risk and return, and exit strategies are an important means of risk management. One should think upon entry:

What is the purpose of this investment? Is it short-term speculation or long-term holding? What is the target return? Only then can one formulate an exit strategy that suits this particular investment. As Peter Lynch famously said, "If you don’t know why you’re buying a stock, you’ll never know when to sell."

Thus, exit and entry are intertwined. I see many people holding a bunch of altcoins, even as they head towards zero, still waiting for 5x, 10x, or 100x returns. Human behavior also has inertia; in the past, when market liquidity was good and the assets were limited, one might have stumbled upon high-multiplication coins by sheer luck and felt they were savvy investors, applying the same mindset to now. But at this stage, the difficulty level has risen, and luck may not work as well, so we must return to investment basics. The principle is simple: good assets, good strategy, and good discipline.

Research the assets, give yourself sufficient reasons to buy, and determine the buy position; set stop-loss, take-profit, or fundamental exit triggers; rely on time and discipline, and first survive before seeking gains. It’s not easy to excel in any of these three aspects; I am also progressing and encourage everyone to do the same, hoping you all achieve results in the market.