Although the altcoins have slightly pulled back today, the current gain leaderboard proves everything; altcoins have started to rally. At this point, there are two questions to face:
1️⃣: Hold onto the altcoins and wait for them to rise
2️⃣: Switch positions to chase hot sectors
I think many people are conflicted about whether to switch positions. If they switch, they fear that just after selling, the price will rise, or if they chase a hot sector, they worry about getting trapped right after entering. If they don’t switch, they fear missing out on the entire market cycle. I believe many have experienced this.
Let me share my viewpoint. First, I do not recommend allocating all positions to the same sector. Instead, funds should be distributed among the leaders of each sector or between outstanding assets in that sector. Usually, it's the leading stocks that drive the overall rise of the sector. This way, by diversifying across multiple sectors, you at least won’t miss out on the entire market cycle, unless you are particularly unlucky and didn't buy into a single sector 😆. Funds are limited, but there are many assets; to buy into hot sectors, you need to cultivate your market sensitivity—keep a close watch on the market. The market tells everything. In your spare time, pay attention to news and project official announcements. If you notice a leading stock rising, you can chase the second or third leaders in that sector, and funds will overflow.
Especially noteworthy are some assets that were previously very popular but have undergone a long period of consolidation. Suddenly, they experience a significant increase. This type of asset requires more attention; you can enter during a pullback because after a long period of consolidation, the position is lighter. When the market comes alive, the operators also want to make money. The first wave of a rally followed by a pullback usually washes out some of the previously trapped chips. After a tough rally, many people who were trapped worry about prices falling back and will choose to exit first. The remaining people who don’t sell at a loss belong to the sleeping chips, but the operators will definitely push prices higher later on. Without market follow-through, there won’t be any selling space. This is something you can review with many assets, like the fan sector, especially $SANTOS, which exemplifies this trading strategy.
There are many more methods for selecting assets, but I won’t enumerate them all here. In short, review more, monitor the market closely, and stay informed. Cultivate your market intuition and sensitivity. Finally, I hope everyone can achieve results in this market cycle.