I’ve written down some trading insights from the bull market; you might find them useful if the market returns.
1. Risk management is the foundation of survival.
Even if a bull market arrives, it is still full of uncertainties, and prices may fluctuate wildly in a short time.
Geopolitical, macroeconomic, and industry regulatory factors can trigger market fluctuations at any time.
Never invest money you cannot afford to lose. Allocate funds to the crypto market according to your risk tolerance. For individual cryptocurrencies, also manage your position to avoid excessive concentration.
2. Conduct in-depth research, avoid emotional trading (DYOR)
Market trends shift quickly, with new concepts and projects emerging constantly. Additionally, the abundance of information on social media can easily trigger FOMO or FUD emotions.
Before investing, be sure to thoroughly understand the project: What problem does its technology solve? What is the team's background? Is the token economic model reasonable? How active is the community? Are there practical application scenarios or a clear roadmap?
Learn to distinguish between real information and noise in the market. Don't blindly follow trends just because someone is making a call or there is heated community discussion.
3. Pay attention to macro and industry dynamics, adapt to changes.
Macro: Focus on the Federal Reserve's interest rate decisions, important economic data (such as CPI), and regulatory policy trends of major global economies.
Industry: At certain stages, value-storing assets may be more favored, while at other stages, high-growth application tokens may perform better.
4. For projects you are optimistic about, maintain a long-term perspective and patience, regardless of market conditions.
If you select some long-term valuable projects based on in-depth research, then holding patience and ignoring short-term noise may yield better returns.
Consider adopting a dollar-cost averaging strategy, buying in batches to smooth out costs.