Three tests in the cryptocurrency circle:
The first test: You must be able to hold on to the price after buying it and it falls.
Prerequisites:
(1) Buy low enough and have a thick enough safety cushion;
Only then can you have a chance to earn the "Davis double click" of valuation repair + technical repair.
(2) Position and rhythm control are stable enough;
Only by controlling the position and rhythm can you stay calm in the face of a fall.
The second test: You must still hold on to the price after buying it and it rises.
Prerequisites:
(1) The core logic has obviously not been fully realized;
(2) The fundamentals are stable and improving, with no signs of deterioration;
(3) The price of the currency has not yet significantly exceeded its intrinsic value.
For low-priced high-quality track targets, you must hold them for a long time and let the profits run.
The third test: Be brave enough to sell if the price continues to rise after buying it
Prerequisites:
(1) The core logic has basically been fully realized;
(2) The fundamentals are unsustainable, and it is difficult for the main funds to grow as fast as before;
(3) The price of the currency has seriously exceeded its intrinsic value.
Keep reviewing, logic changes, fundamentals deteriorate, currency prices are overvalued, and you should sell them in time.
Buy low and sell high, it is easy to say but difficult to do.
