Most people sell when the market is negative and buy when the market explodes. It is easy to misjudge watching the market rise and fall every day. Here is a way to judge:
Step 1: Initial bottom-fishing
When the BTC price drops by 4%, you can consider bottom-fishing and invest 25% of the principal.
If the BTC price drops by 10%, increase the bottom-fishing strength and invest 40% of the principal.
Note: Avoid full-position operations and always leave room for funds.
Step 2: Second bottom-fishing
If BTC fails to rebound after the first round of decline, but continues to bottom out (down 3% to 5%), then conduct a second bottom-fishing and invest 25% of the principal again.
At this time, you have invested a total of 50% of the principal (25% last time + 25% this time).
Summary: At this time, you have 50% of the chips in hand as a basis for further market fluctuations.
Step 3: Deal with extreme situations
If BTC continues to fall and enters a weekly waterfall decline (which is more common in bull markets, but rare in the current market unless there is a black swan or systemic risk event), then holding 50% of the chips will enable you to be risk-free.
Just wait for the market to rebound slightly, and you will have a chance to get your money back and possibly buy at the bottom.
Remember, if you view your investment as a long-term investment, the market decline should be seen as an opportunity. It provides an opportunity to buy more tokens at a lower price. It is crucial to develop a strategy before making any purchases, and never invest all your money in it.
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