In the case of market instability, we should try to avoid high-risk, high-volatility altcoins and high-leverage contracts. If you must participate, you can choose mainstream currencies such as Ethereum, SOL, BNB, etc. These currencies have strong risk resistance when the market fluctuates. Once the market becomes strong again, it is the best time for us to consider the altcoin rebound.

The core strategy at this stage is to defend and keep the principal. Only if you survive, the second and third waves of the market will be relevant to you. Only by taking steady steps can you go further in the bull market.

The core of bull market trading: Balance planning and execution.

To achieve stable returns in a bull market, a trading plan and execution are crucial. Position control and zero-cost operations are not empty talk but practical strategies.

1. Zero-cost strategy: Reduce risk and increase returns.

The concept of zero-cost refers to recovering the invested principal first during a bull market, with the remaining positions being pure profit. For example, if we build a position in COMP at $71, and it rises to a maximum of $144, selling out the amount you initially invested means the remaining portion is pure profit. In this situation, regardless of short-term market fluctuations, you can remain calm because your principal has been safely withdrawn.

The advantage of this operation is:

If the market adjusts, you won’t panic or feel anxious due to losses.

If it rises, you can continue to earn; if it falls, since you have recouped your investment, your principal won't be affected.

2. Quality altcoins: Retain base positions to avoid 'selling too early.'

For some carefully selected quality altcoins, such as FET bought at $1.3, DASH at $35, and PEPE at $115, it is unlikely to see such low prices again unless there is significant negative news in the market. If you sell everything during the rise, you may miss out on subsequent gains.

Response strategies:

Sell in batches, retain part of the base position, and strive to achieve zero-cost holding.

Holding principle: Learn to gradually reduce positions when profiting, rather than clearing all at once.

This trading system is not complex; the difficulty lies in strict execution. A reasonable position planning can help you go further in a bull market.

3. Clearing strategy: Gradually clear positions to reduce decision-making errors.

When the market reaches a peak, clearing positions should be done gradually:

First, cut the position in half, then decide whether to clear the remaining position based on market trends.

Avoid clearing all positions at once, as no one can accurately predict the market's top or bottom.

Observe market signals, such as hot topics frequently appearing on the list and the altcoin speculation index hitting new highs, all of which are potential warnings of a peak.

Macroeconomic data and market dynamics: Stay sharp and adapt flexibly.

This week, multiple key inflation data will be released from the macroeconomic aspect, directly affecting the Federal Reserve's monetary policy direction. Key data to focus on includes:

Wednesday: Consumer Price Index (CPI)

Thursday: Producer Price Index (PPI)

The market generally expects inflation data may rise slightly, but this will not change the overall expectation of a rate cut in December. A continuous 72-hour decline is rare, thus the likelihood of a rebound in the short term is relatively high.

Other influencing factors:

Policy dynamics: For example, MSTR included in the QQQ index, FASB accounting standards coming into effect, and meetings of the Federal Reserve and the Bank of Japan.

Political factors: Trump may take office in January 2025, and rumors suggest he hopes to push Bitcoin to $150,000, which may drive ETH and other altcoins to rise simultaneously.

Holiday factors: Changes in market sentiment around Christmas.

Summary: Trading requires execution; a bull market requires planning.

The market changes rapidly; we need sensitive market intuition and strict execution. Profit in a bull market not only depends on buying correctly but also on selling well. After a trend forms, the precision of the buying point is not the most crucial; what matters is grasping the selling point to avoid failing to cash out at the peak.

Only by truly taking action and executing effectively can you laugh last in a bull market!

Today's article ends here; welcome to play together on the homepage~

Investment carries risks, and the above content is a personal sharing, not constituting investment advice!