The bull market is coming, but in the past few days, doomsday chariots ETC and EOS have started to pull up, coupled with events such as the collapse of the DEXX chain platform. These are generally signs of a change in the market. Maybe the waterfall will come tomorrow. If a big correction occurs, this is undoubtedly an excellent time to buy at the bottom, but capital planning plays a vital role.
Should you enter the market with a full position? Or a five- or seven-level position? Or should you go short and wait for a big drop before taking action?
Just today, I carefully made a special table to calculate the approximate returns of different positions in a bull market (this is just an extremely simple model, without adding too many variables, and is only a preliminary judgment).
Assuming there is another sharp correction later, I compared the returns of a full position and a five-layer position. If the remaining 50% position can enter the market at the correct bottom-picking position, the return will be far greater than a full position.
However, as the bottom-fishing position rises, the returns will gradually become flat. Even if you do not bottom-fish and chase highs on the right side, the returns may be lower than a full position.
Of course, there may not be a significant correction, which is also a factor of uncertainty.
Therefore, no matter what position you are in, as long as you strictly formulate strategies, select high-quality currencies and hold on to them without being disturbed by external factors, you will be able to make a fortune in the bull market (in the later stage of the bull market, you should withdraw from the top in batches and never fight to the end).
As far as my community is concerned, BTC has been rising fiercely in the past month. Everyone has switched positions flexibly according to 50% to 70% of the positions. The more enthusiastic the market is, the more they sell, but at least 50% of the positions are kept. Currently, they have cleared their positions. But occasionally they do ultra-short-term trading because the current market is no longer suitable for the situation. If the market continues to rise, the income will continue to increase; if there is a big drop, they will buy at a low price and increase their positions. In this way, there is no need to worry whether it rises or falls!
The current market situation does not support us to gamble with all positions. It takes more time and energy to observe the sector behind the currency and formulate strategies according to market trends. Which currency can be held for a long time? Which currency is only for short-term operation? This will directly determine the final return rate of the bull market.
You should know that you can’t just buy a coin and hold it to make a fortune in a bull market (in the bull market from December last year to March this year, many people have gained 3 to 10 times, but most long-term investors have lost all their profits. Our team liquidated all our positions in March. This was a decision made after comprehensive judgment from many aspects, and it turned out to be extremely correct). Therefore, more wealth is left to those who are prepared, strategic, executive and have a vision to earn.
Go to my homepage and follow me, and take off immediately!