The bull market enters the second phase, trading strategies and suggestions.
Please seize the opportunity at this stage.
If you listened to my advice a few days ago, you should be very happy now.
A week ago, when most people were still saying BTC would continue to bleed, I wrote that the bull market would enter the second phase, and one should shift their main BTC position to altcoins.
Four days ago, when most people were calling for BTC to adjust to 80,000 or 70,000, I wrote that there would not be a big waterfall; do not wait for the waterfall.
Sometimes, I really wish my biggest label is that of a trading strategist. Why can I be so accurate? Because my fundamental analytical principle is based on behavioral economics, which analyzes human behavior from the perspective of human nature.
The situation of each market will change, but human nature will never change.
Having a little bull talk, now let's discuss serious matters.
1. The second phase does not have a comprehensive altcoin market.
The second phase will see a rise in altcoins. However, it won't be a comprehensive altcoin market. This means that most will rise somewhat, but we have not yet entered a phase of several times increase.
The general rise of altcoins is because: the market has regained confidence, and users holding USDT are gradually buying in. For most altcoins, after more than half a year of decline, prices are already very low, and those who should have cut losses have already done so, with selling pressure being very small. At this time, trapped funds want to buy at the bottom to lower costs. Additionally, project parties will also want to gather cheap chips.
But the comprehensive altcoin market will not be initiated temporarily because:
Overall, users still have the representative bias in behavioral economics, and they need time to gradually let go. Additionally, from a funding perspective, the main funds in the second phase come from the entry of sidelined funds. So, overall, the market is relatively difficult to initiate a comprehensive altcoin market. Moreover, most altcoins have a lot of trapped positions, and when it reaches a critical point, it will...
This means that most altcoins will rise to a certain position before entering a period of consolidation.
So the situation in the second phase is: a small number of leading coins surge (over 10 times), a small proportion of altcoins have reasonable increases (over 2 times), and most altcoins rise generally, with a certain proportion of unfortunate altcoins.
2. Operational strategy
The first approach is to allocate equal positions in the sectors and coins you believe will rise; the benefit of this is that it will definitely not be wrong. Because even if it doesn't rise now, when the third phase arrives, the sectors will rotate and also rise.
The second approach is to allocate more positions to sectors that are believed to have a higher probability. This is also my operation. But the most challenging part is that you need to judge which sectors will be hyped first; this is a probability issue.
I hope that during the bull market, everyone must remember one thing: you must hold during a bull market; you must hold.
You might feel that you heard a lot in March and April this year, only to end up in a confusing drop. One thing is for sure, I have definitely not said that. What I want to say is that different stages require different strategies. The strategy in the early bull market is to hold, hold, hold.
3. Promising sectors
From my personal perspective, there are three sectors I am optimistic about at this stage.
1) MeMe sector
I've said this many times; stable large funds recommend PNUT and ACT.
I still have a portion of funds invested in the relatively good MeMe on-chain, which I intend to hold long-term, with higher risk, betting on a higher critical hit.
2) BTC sector
The focus is on ORDI, SATS, and PIZZA, and there are many others.
3) AI sector
I personally invested in IO and Clore.
The BTC sector and AI sector still have many projects that have not yet been listed, which should list during this market phase. Most of my articles in the past few months have been about these two sectors; we will talk more about it later.
