Recently, many friends have come to ask me during the Binance Square live broadcast about how to view the current market situation. I've heard other bloggers say that #BTC might drop to 60,000, 70,000, or even 80,000. What should I do now? Should I liquidate everything?
Just because others say the price will drop doesn't mean it will drop that much. You need to have your own investment logic, as well as consider the investment cycle. If you're trading short-term, then play short-term; if you're trading mid to long-term, then play mid to long-term.
Even when the market dipped the other day, I still told everyone that those with a mid to long-term perspective could build a position of 30-50%. I encouraged everyone to buy for several days in the live broadcast. Why didn't I tell everyone to go all in? It's because I'm still worried there might be another pullback. If there is a pullback, I'll then tell everyone to buy the remaining half of the position.
Many people are asking why, despite being concerned about another pullback, I still dared to buy a 50% position. This is actually a very good question. It's because I'm afraid I could be wrong; what if it doesn't drop? If it doesn't drop, I might miss out on the opportunity and end up chasing the price at a high level later. I don't want to miss a big market opportunity just because I made a mistake once. So I choose to buy half a position first because I am bullish on the future market and believe it will go up significantly. Therefore, I can't afford to make such a mistake. When it's time to build a position, I mustn't hesitate. If there is a short-term pullback, I can accept it because the downside potential is limited. This is essentially a matter of position management. If you go all in and then face a pullback, you will be very passive. With the remaining half, you can be aggressive when the opportunity arises or defensive when needed.