➤ The first W: WHO am I?
Who am I? Understanding oneself is the most important. Everyone has different lifestyles, personalities, and traits, making them suitable for different trading or investment methods, as well as different investment targets.
Let me give a few examples:
- For those with stable jobs but not much time to trade, regular investment is suitable.
- For friends who are sensitive and have time to monitor the market, it's suitable to chase hot topics for trading.
- Those with analytical skills but poor emotional management are suitable for selecting good target assets for early positioning.
- Those who understand technical aspects and macro influences, have high psychological quality, and rich trading experience with a relatively complete and verified trading framework are suitable for trading futures contracts.
……there will be many types.
Advice: It’s advisable to fully understand yourself and choose an investment method that suits you. Don’t just follow others because they are making money, as it may lead to learning to "walk like the people of Handan" and losing your own suitable strategy.
➤ The second W: When to exchange?
When to trade? Choosing the right trading time is very important. The post below by Teacher Owen introduces a mid-term investment approach and is part of Owen's Double Eleven material.
In addition to looking at K-lines, it's also important to consider the macro environment and changes in market sentiment.
The macro environment mainly focuses on the Federal Reserve's monetary policy while also considering Europe and Japan, mainly in terms of interest rates and QE/QT tools.
Market sentiment should pay attention to extreme emotions. Extreme emotions can lead to irrationality; for instance, during the recent PUMP live streams, or during times of extreme fear when some people dare not buy the dip.
Note, do not focus on that BTC greed/fear index. That index measures BTC price fluctuations, Google search trends, and social media discussions; it reflects BTC sentiment but not the entire cryptocurrency market.
Advice: When many influencers are promoting a coin simultaneously, it's advisable to check the FDV before considering a purchase. Especially for MEME coins, it’s worth checking the FDV before deciding whether to chase. If it’s a value coin, consider short-term profit-taking or reducing positions after buying. Sometimes, waiting until this wave calms down before adding to your position is a better choice.
➤ The third W: What to exchange?
What to trade? Mainly fundamental analysis, which requires certain knowledge and analytical skills. This is beneficial for finding quality projects to position early.
Choosing the right target can yield higher returns.
Advice: If it’s a new project, it’s advisable to check what innovations this project has. Projects with little innovation may be clones and might not go far. Innovative projects should be evaluated for their impact on market sentiment, as those that the market doesn’t understand are less likely to explode. As for old projects, analyze whether they have a new narrative or observe their operational methods to choose the right timing for a steady entry.
➤ Summary
Among these three Ws, WHO is actually the most important. Because if you choose the wrong strategy that doesn’t suit you, it’s an entirely wrong framework. Some friends even lack an investment framework altogether...
Next is WHEN, as WHEN has a greater impact on win rates. Choosing the right timing, such as March 12, 2020, where almost anything bought could profit, with the difference being how much.
Ultimately, it's WHAT, as WHAT has a greater impact on odds. Choosing the right project can yield higher returns.
However, if you choose the right project at the wrong time, the returns may be relatively reduced, and buying when VC coins are in high demand might result in holding onto them for a longer time.
WHO > WHEN > WHAT
WHO + WHEN + WHAT = Wealth
