In the process of communicating with many cryptocurrency friends, I deeply feel the anxiety and struggle of unlocking positions. As a participant in the market, I hope to condense my personal insights into the following suggestions, hoping to provide some inspiration for investors who are currently enduring hardship.
When facing different depths of being trapped, differentiated strategies should be adopted. If floating losses are controlled within 20%, it is recommended to seize the opportunity when the daily level rebounds to the 5-day moving average, releasing 1/3 of the position in batches; if a weekly level rebound occurs, one can decisively reduce the position by half. This dynamic reduction method can lock in some principal while reserving ammunition for subsequent operations. For those deeply trapped with a holding cost more than 30% higher than the current price, one should avoid losing composure. A tiered averaging strategy can be implemented, dividing the prepared funds into three portions. When the price reaches a strong support level, build a base position, and add a portion every time it falls by 5%-8%, gradually lowering the average price, and take control when market sentiment improves.
In terms of trend analysis, when the cryptocurrency held shows three consecutive bearish candles + a breakout technical pattern, one must remember the Alligator Principle, using the 20-day moving average as a warning line, paying attention to substantial negative news from the project side. If either stop-loss mechanism is triggered, one must decisively act. If the price is fluctuating around the middle band of the Bollinger Bands, a range trading strategy can be adopted, reducing positions in the upper band area and buying back in the lower band area, waiting for the trend to become clear. When the 5-day moving average rises like the sun crossing multiple moving averages, it is time to let profits run. At this point, one should pay attention to trading volume, project dynamics, and industry fundamentals, while other fluctuations can be seen as small pauses during the upward trend.
Unlocking positions is not only a technical competition but also a psychological game. One must cultivate the composure of 'seeing Mount Tai collapse without changing color' and develop the acuity of 'seeing the subtle and knowing the profound'. The market is always full of opportunities, but what is lacking is the courage to regroup. When feeling lost, it might be beneficial to temporarily step away from the market and let reason take the helm again; when wanting to give up, think about the initial intention of choosing the crypto world. May every investor cultivate their own 'investment mindset' in the digital wave, believing that the darkest moment is often closest to dawn.
Are you trapped? When to buy the dip? It's still that phrase: when feeling lost and helpless not knowing what to do, click on the avatar to follow me. I need fans, you need references; guessing is not as good as following!
