In cyclical fluctuations, there are several key points to pay attention to:
First, try not to buy new coins at the end of a bull market, or even if you do, do not have overly high expectations for returns. The large market cycle is very important; once signs of a bear market start to appear during a major trend, slow movers will experience significant drawdowns.
Second, during sector rotations, do not easily switch positions to chase hot trends. In a bull market cycle, a particular hot trend may suddenly become popular, with many calls on Twitter, and the market sentiment can become exuberant, while your position remains stagnant for a long time, dragging on. When you are ready to switch positions, if the market suddenly changes direction, it can easily lead to being trapped. It is essential to have the ability to filter out noise and the courage to have a planned approach to trading, especially when the market is in a bull market phase. At what stage is the bull market right now? If it has just started, then after selling everything now, are there better targets that can outperform your current holdings? Why is now a good time to sell? If the reasons are too casual and based solely on calls without your own analysis, it can be easy to be swayed by candlestick charts, chasing hot coins, and getting trapped at high points, which can affect your mindset.
