To achieve stable returns in a bull market, a trading plan and execution are crucial. Position control and zero-cost operations are not just empty talk, but practical strategies.
1. Zero-Cost Strategy: Reduce Risk, Increase Returns
The concept of zero-cost refers to recovering your initial investment in a bull market, with the remaining holdings being pure profit. For example, if we opened a position in COMP at $71 and it peaked at $144, selling your invested position would leave the rest as pure profit. In this case, regardless of short-term market fluctuations, you can remain calm because your principal has been safely withdrawn.
The advantage of this operation is that:
If the market adjusts, you won't panic, and you won't be anxious due to losses.
If it rises, you can continue to profit; if it falls, since you have already recouped your principal, your initial investment won't be harmed.
2. Quality Altcoins: Retain Core Holdings, Avoid "Selling Too Early"
For some carefully selected quality altcoins, such as FET purchased at $1.3, DASH at $35, and PEPE at $115, it is hard to see such low prices again unless there is major bad news in the market. If you sell everything during the rise, you may miss out on subsequent gains.
Response Strategy:
Sell in batches, retain a portion of core holdings, and strive for zero-cost holding.
Holding Principle: Learn to gradually reduce your position when in profit, rather than liquidating everything at once.
This trading system is not complicated; the challenge lies in strict execution. Reasonable position planning can help you go further in a bull market.
3. Liquidation Strategy: Step-by-Step Liquidation to Reduce Decision-Making Errors
When the market reaches a high point, liquidation should be done in steps:
First, reduce your position by half, and then decide whether to liquidate the remaining position based on market movements.
Avoid one-time liquidation, as no one can accurately predict the market's peak or bottom.
Observe market signals, such as frequent mentions of hot stocks, and new highs in altcoin speculation indexes; these are potential warnings of a peak.
