Currently, the most typical way to trade alpha is quick in and out, right? From personal experience, wear-and-tear is unavoidable; and early wear-and-tear could be around 10,000 in trading volume, but recently it feels like it's approaching 20,000 or 30,000. The worst part is if you're not careful, you might get cut, which is equivalent to brushing without any gain.
How can I trade alpha to earn steadily and as much as possible? I have summarized some experiences, welcome to exchange ideas.
1. Choose relatively reliable assets
A simple judgment method is to look at the project's FDV, market cap, liquidity, and especially pay attention to the funding history. Consider these factors comprehensively; for example, if the liquidity is shallow and FDV is abnormally high, it’s better to avoid it.
Funding, one aspect is to look at the financial strength (but having this strength does not necessarily mean they are willing to pump your token); the other is to look at resource background. Generally speaking, those with a top-tier background will at least care about their reputation.
Going a bit deeper, it requires quickly assessing the project's fundamentals, product logic, narrative, etc., to see if it can attract external speculative funds, and so on. I plan to do a quick weekly summary of alpha projects in the future, so I recommend following and sharing to not miss out.
2. Judge the overall trend and use limit orders opportunistically for swings.
Of course, no matter how much we study, we retail investors still face an information disadvantage against the big players. Reliable assets may still face setbacks due to various irresistible factors, which requires us to be opportunistic with any asset. My personal summary is simple:
First, assess the major trends at the weekly and daily levels. For example, recently, the main trend has been bullish. In this case, most project teams that are not one-off flows will still think about taking profits. Therefore, when the token price, trading volume, etc., do not meet expectations, it is unlikely that they will cut losses directly. Regarding specific judgments, it goes back to the first point.
But specifically at the daily level during a pullback, it is highly likely that these alpha tokens will also experience significant pullbacks, so don't rush in recklessly. Switch back to a quick entry and exit wear-and-tear mode. You can also do some ultra-short trading, still following the T strategy, buying low and selling high at W bottoms, and if you buy high, quickly cut losses. If the overall trend is good, don't worry too much if you buy high in a short interval; it is likely to rise later.
In fact, if you change your mindset and treat this as an opportunity to improve trading skills, trading a few times daily for practice; you will be much more tolerant of those wear-and-tear.
3. Pay attention to trading competitions
There are actually two angles here. The first is purely to brush along. As mentioned in the previous two points, if you choose the right asset and there is a trading competition activity, just check daily and brush it as much as you can; the more you can get, the better.
The second point is to focus on those with high entry requirements, which often means attractive rewards and substantial funds involved. For example, with the recent $CROSS, instead of competing for rewards, it’s better to go for a crazy W bottom for a swing. You can observe the trend; following behind to benefit a little is fine.
The above are some of my recent experiences with alpha. To find more reliable opportunities, I plan to periodically research alpha projects and do some brief critiques and comments. If you're interested, feel free to follow!
Brave bull charging 🐂🐂🐂