Many prefer spot trading during a bull market, and rightly so, as leverage becomes a major enemy with frequent stop hunts and liquidations. HODLing often beats active trading in this environment. Here are tips for spot trading during a bull market:
Thesis-Driven/Narrative-Based Buying: 50% of success comes from understanding current market narratives. Research deeply into the thesis or narrative of any asset before buying. Don't buy blindly; at least read the whitepaper and understand the project's community.
Practice Sound Money Management: Never go all-in. Allocate properly: a maximum of 10% of your portfolio per coin (across 4 entries) and keep at least 30% in cash. Cash provides liquidity for buying dips.
Maintain Psychological Control; Don't Panic Easily: During a bull market, negative news will circulate, aiming to shake your conviction. Don't let fear drive irrational decisions. Always think with a clear head before acting.
Take Profits When It's Time: Don't be a "bagholder" who watches prices rise without realizing gains. The only way to profit is by selling. For narrative assets, 2-4 months is typically the sell window. For sector assets, holding for 2-4 years (a full cycle) can be reasonable.
Hope this helps!