Can you really hold onto the assets in your hands until the end of this big bull run?
First, let me share a technique that you can hold onto, including why it's important to separate short-term and long-term positions.
Under the premise that the overall direction is certainly upward, what we are discussing now is how to properly allocate long-term and short-term positions. For example, you might allocate a certain percentage of your capital for long-term investments and keep the remaining percentage for short-term trading in speculative assets.
The purpose of this approach is to help you not only avoid the risk of missing out during this bull run but also to reduce the volatility risk.
Because many people don't know when to sell, I tell you that if the speculative assets have increased by 50%, it's perfectly fine to sell for a 30% profit.
Since no one has unlimited resources, if you reduce your position, can you buy the next opportunity? Of course, it's better if the remaining long-term position can double later, allowing you to withdraw your principal and achieve a zero-cost position, so that you won't panic during future adjustments.
Don't chase highs; when your short-term position reaches a profit point, you should take profits. I've seen too many people unwilling to reduce their positions and end up riding the volatility.
As for the other half of your long-term position, just manage it according to your set target levels; don't worry about the current market fluctuations. What's important now is to focus on your short-term trading strategy.
If you're still unclear on why it's necessary to separate long-term and short-term positions, carefully review the above content, follow me for communication and exchange, or if you don't know how to allocate, that's fine too.
