According to BlockBeats, on December 3, Cobo's co-founder and CEO, Shenyu, shared insights on trading difficulty levels via X. He categorized various trading strategies based on their complexity and the skills required to execute them effectively.
Shenyu highlighted that arbitrage operations are relatively straightforward, requiring only basic arithmetic skills and strong execution capabilities. This simplicity makes it accessible to traders who can act decisively. In contrast, bottom-fishing strategies demand a higher level of skill, particularly in position management and emotional control. Having sufficient cash reserves at the right time is crucial for seizing opportunities in this approach.
Reinvesting heavily after selling off assets is another strategy that Shenyu described as requiring a strong mindset. Traders must possess the psychological resilience to adjust and re-enter the market confidently. On the other hand, timing the market top is a highly complex task. It involves a comprehensive analysis of various factors, including fundamental data, macroeconomic conditions, and collective market sentiment. A keen insight into market trends and the ability to react swiftly are essential for success in this area.
Shenyu further noted that leveraged trading presents the highest level of difficulty. The use of leverage significantly amplifies volatility, thereby reducing the survival rate of traders. Mastery in bottom-fishing, heavy reinvestment, and timing the market top are prerequisites for engaging in leveraged trading effectively. Shenyu concluded by reflecting on his years of trading experience, stating that he no longer aims to time the market top but has learned how to manage his positions effectively.
