1) Choose coins: You must choose powerful and high-potential tokens
Follow the narrative + traffic + material content + conversion community + token resilience + market value gap of the token
For example, turbo at 300 million; moo deng at 150 million; goat at 450 million
2) Timing: Only buy in during real drastic drop opportunities
For example, July 5, 2024, August 5, 2024, a few days before the US election in 2024, which seems to be around November 5;
Only by buying during a real drastic drop can you truly reduce trading risks; whenever you open an exchange, the reason you lose money is basically because you didn't get a good price, resulting in being stuck when the market rises by 55% or even 100% — so, the tokens after a rebound, their prices have already largely retraced, don’t buy; after a rebound and a fluctuation, if there is a retracement of around 10%-20%, it is also advisable not to buy! You must buy during a real drastic drop! You may not know the lowest point of a token, but we can surely know when the market is experiencing a real drastic drop, when the sentiment in the community is at an ice point, and when there are bloodied chips everywhere... so, you know!
3) Profit-taking: Principal profit-taking, holding profits painlessly long-term
Based on your price position, you can either take out the principal at 1x or 50%; assuming you bought 1 million, with an unrealized profit of 500,000, don’t be greedy, thinking you can instantly turn this 1 million into 3 million to 5 million! Rather, think differently: sell the principal of 1 million, and keep the remaining 500,000 profit chips — you hold on until BTC reaches a consensus high point, for example, this round everyone sees 100,000 to 200,000, then wait until at least 100,000 to see how much this 500,000 profit chip — for example, it could be turbo; for example, it could be moo deng, how much will it be then? If calculated at 3-10 times, actually this 500,000 profit could eventually be 1.5 million to 5 million in hand!
Then your earnings are not just the initial 1x and 55% increase.
If you strictly follow these 3 steps, earning 3-10 times is not a problem!
Additional details:
Assuming the investment principal is 1 million, there are a total of 3-5 drastic drop opportunities (some drastic drop opportunities can be called large drops, gold pits, like that one on August 5)
Now let’s calculate a sum:
First time: 1 million invested, take out the principal at 50% profit (I won't calculate it as 1 times, but rather based on 50% for a balanced and conservative value), gaining 500,000 profit chips;
Second time: 1 million invested, also gaining 500,000 profit chips;
By the third time, you will find that the 1 million profit chips you gained from the first two times may have increased by another 50%-100% over time, so your total assets now are: principal 1 million + 1 million in profit chips + 500,000 in profit chip growth = 2.5 million; at this point, you can still invest the original 1 million principal in the new big opportunity, or take half of your current total assets as the new principal, which would be 1.25 million. Both are fine. For calculation convenience, we will still calculate based on the original principal, which means this time you gained another 500,000 profit chips.
Just calculate based on 3 conservative opportunities, ultimately if you hold your profit chips for a 5x return, then 1.5 million profit chips * 5 = 7.5 million profit, with a principal of 1 million. You will ultimately turn 1 million into 8.5 million! The final result is 8.5 times!
In other words, with 1 million principal invested, following this strategy, with 3 drastic drop opportunities, taking 50% profit each time and holding long-term, in this case, your final return multiple is 8.5 times!
Detail 2 — About the exit profit-taking points:
Is it 50% profit-taking on the principal? Or is it doubling the principal? — To be honest, selling is what makes a true master! This is indeed difficult. On one hand, it depends on the price situation when you bought; if you bought at a very low position, then doubling out of the principal would be more reasonable; if you bought relatively high, then taking profit at around 50% might be better. Besides that, there is an experience and rule that helps in deciding whether to sell at this moment — basically, every time there is a real big rise or fall, it is usually measured in weeks. Without a certain time cycle in the market, it is just a rebound and not a real rise or fall.
Let me clarify this:
(1) Retracement ≠ Drastic Drop
(2) Rebound ≠ Surge
Retracements and rebounds are generally very quick, within 1-2 days; but a real surge must be measured in weeks, counting the upward K-line waves, and then it will continue to fluctuate for a period; a true drop is similar, it must drop rapidly, then fluctuate a bit, and then continue to drop, also measured in weeks!
So, don’t just hold onto a 30% gain after a one-day rebound and take profit on the principal; that would be a bit regrettable.
Of course, the above is just my personal experience and judgment; if you find it enlightening and reasonable, feel free to follow and leave a message. Thank you for reading!