The Threefold Test in the Crypto Circle:
First Test: After buying, if the price drops, you need to hold on.
Precondition:
(1) Buy low enough, with a thick safety cushion;
Only then will you have the chance to earn the 'Davis Double Hit' from valuation recovery + technical recovery.
(2) Position and rhythm control must be stable;
Control your position and rhythm well, so you won't panic in the face of a downturn.
Second Test: After buying, if the price rises, you still need to hold on.
Precondition:
(1) The core logic is still not fully realized;
(2) The fundamentals are stable and improving, with no signs of deterioration;
(3) The coin price is not significantly higher than its intrinsic value.
For high-quality targets in a low position, hold long to let profits run.
Third Test: After buying, if the price continues to rise, you must be willing to sell.
Precondition:
(1) The core logic has basically been fully realized;
(2) The fundamentals are hard to sustain, and the main funds are unlikely to grow as rapidly as before;
(3) The coin price is significantly higher than its intrinsic value.
Constantly reassess: if the logic changes, fundamentals deteriorate, and the coin price is overvalued, you need to sell in a timely manner.
Buying low and selling high sounds easy, but it's not easy to accomplish.
If you are currently losing and don't know what to do, feel free to follow me, click on my profile to find me anytime, and I’ll share all the contract and spot trading strategies. Just for gaining followers.