In a bull market, prices usually rise very quickly, with almost no noticeable and sustainable pullbacks, and early retail investors tend to hesitate and dare not buy.
Many people miss out on rising opportunities, and when they 'fear missing out' and chase prices, the market often enters a consolidation or rapid decline phase. During consolidation, they become pessimistic and ultimately miss out on swift rising opportunities again.
The correct strategy is: to build positions gradually during consolidation or pullback phases, and to remain patient, focusing on the market structure of longer time frames.
Next are specific suggestions!
Suggestion 1: Stick to spot trading and avoid leverage; prioritize spot trading.
Many people are accustomed to using leverage, but this is actually a trap. Every fluctuation in the market makes people feel it's an 'opportunity', but in reality, most of the time it is not. You don't need to rush to act. Leveraged trading ultimately leads most people to losses or even zero--don't let it ruin your bull market profits.
Stick to spot trading, so you won't be unable to hold positions due to over-leverage, or worse, get forcibly liquidated and miss market opportunities. Trust me, stay away from leveraged trading.
Suggestion 2: Don't chase prices; focus on pullbacks.
Most people trade based on emotions, only buying when prices rise (green candles) because it makes them feel 'safe'. However, the market won't rise in a straight line; even in a bull market, there will be pullbacks.
Daily fluctuations: small pullbacks of a few percentage points.
- Every few weeks: 10%-30% panic sell-off.
If you buy when the price rises, you are likely to sell during pullbacks out of panic. Buying during a rise feels reassuring. Selling during a drop feels relieving.
But the correct strategy is:
Buying may feel scary, but it's the right time. Selling may feel reluctant, but it's a rational choice.
If you can operate against the minor trend and with the major trend, building positions during pullbacks and boldly buying during panic sell-offs, you will have an advantage over most people.
Suggestion 3: Build positions in batches and operate patiently.
So far:
Only choose spot trading. Don't chase prices, but build positions during pullbacks. Also, you don't need to invest all your funds at once.
You can choose to build positions gradually. If the price drops by 5% and you invest all your funds in altcoins at once, you might panic and sell if the market undergoes a larger adjustment (like a drop of 10%, 20%, or even 30%).
The correct strategy is: when the price drops by 5%, first invest 10% of the funds. This way, when a larger pullback occurs later (like 10%, 20%, or 30%), you can continue to gradually increase your position instead of being shaken out by market fluctuations.
What if the pullback doesn't deepen further? That's okay. Don't invest all your funds at once out of fear of missing out, as it may force you to exit during a deeper pullback.
There will be more pullbacks and building opportunities in the future.
In a highly volatile market, you cannot perfectly time every fluctuation. You also don't need to buy at the lowest point or sell at the highest point; just focus on long-term gains.
Suggestion 4: Control risk and avoid over-leveraging.
You may have heard of legendary stories of those who made millions by going 'all in', but over-leveraging can greatly test your psychological endurance. If your position is too heavy, you might be forced to sell during market pullbacks out of panic, ultimately missing out on larger opportunities.
Suggestion 5: Develop a plan that suits you.
Don't directly copy others' plans; instead, create a clear investment plan based on your own goals and risk tolerance. This plan should include risk management and various contingency measures in case market trends diverge from expectations.
A good plan can help you remain calm during market fluctuations, avoiding making wrong decisions out of panic or excitement, while also helping you gradually realize profit exits. #比特币BTC
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