1. Control your emotions and don't chase FOMO
• Understand FOMO (Fear of Missing Out): During periods of excitement, many investors buy in for fear of missing out on price increases. This can easily lead to buying at peak prices.
• Wise action: Clearly define your investment strategy (short term, medium term, or long term).
2. Take reasonable profits
• Partial profit-taking: If you have made a profit, consider taking some profits to preserve your capital.
• Withdrawal strategy: The 50/50 or 70/30 rule (withdraw 50-70% of your initial capital and keep the profits to continue growing).
3. Allocate capital and diversify your portfolio
• Avoid putting all your capital into one coin or one portfolio. When the market reverses, diversification will help you reduce risk.
4. Monitor reversal signals
• Trading volume: If the price continues to rise but the trading volume decreases, this could be a sign the market is about to correct.
• Technical analysis: Monitor indicators like RSI, MACD, or reversal candle patterns (such as Bearish Engulfing).
• News and sentiment: When media and social networks are flooded with praise about "wealth" or "the market can't go down", this is often a sign of a bubble.
5. Take time to research
• Real value: Ask yourself whether the current price reflects the real value of the project.
• Overall market: Consider macro factors such as legal regulations, market cycles, and institutional capital flows.
6. Be prepared for corrections
• The market always has cycles of ups and downs, and after a period of excitement, there is usually a correction phase. $BTC $BNB