How to trade cryptocurrencies in a bull market? Don't get overly excited; understanding the trend is key.
Summarizing 6 practical experiences to avoid detours:
1. Enter with the trend
A bull market is not a bottom-fishing game. Once the trend is established, the biggest fear is hesitating and missing the entire market movement.
2. A spike is an opportunity
The sell-offs in a bull market are often just a shakeout; the tougher the sell-off, the quicker the recovery. Be bold, and you can hold positions for the main uptrend.
3. Diversify your layout
Combine mainstream + potential sectors without putting too much weight on one direction. Bull markets rotate quickly, and misstepping can lead to losses.
4. Grasp divergences
When the market is unanimously bullish, it’s a high point; when everyone is bearish, it’s a buying point. Contrarian thinking is more valuable than FOMO.
5. Stick to the long-term
Minimize fuss. Frequent trading during a bull market is unlikely to yield profits from the main uptrend and may lead to being caught on the wrong side.
6. Fear not the pullback
Pullbacks are normal. A true bull market will continue to reach new highs after three or four deep pullbacks; the pattern determines the maximum profit potential.
Opportunities in a bull market are never meant for short-sighted and frequent traders, but for those who understand the trend and can hold their positions.