⭕A must-read for novices and veterans in the currency circle 1⃣️
Let me tell you a truth first‼ ️That is, most people will lose all their principal after the bull market cycle ends! (Don’t disbelieve it)
The next step is how to prevent and how to avoid❓
1. Not taking profits
No one cares about the highest portfolio value you ever achieved - what matters is how much you retain at the end of the cycle. Here is an example of a system: (Adjust to your own risk tolerance)
Tips:
- If you think you are smart or are taking screenshots to show off your profits, it is time to take profits.
- Taking profits means moving funds into fiat currencies, stablecoins or long-term holding coins instead of investing in more high-risk coins
- Develop an exit plan for this cycle
2. Suffering from the sequelae of the bear market
After two years of struggling in a bear market, you have developed some bad habits. Bear market strategies will not work in a bull market. Here are some examples of bad habits...
3. Too much focus on fundamentals rather than hype
Bull markets are driven by speculation. Look for projects that: 1) generate hype 2) have a simple and understandable "story" - can people understand why prices will skyrocket in the future? Too much fundamental analysis will kill you.
4. Rotate too quickly
Remember how in a bear market the theme would shift in just a few days? Here’s why: individual retail trading environment + lack of new liquidity = a quick game of musical chairs. In a bull market, the main theme lasts longer because there is more liquidity. Don't rotate too quickly and miss out on profits.
5. Buck the trend
The price has increased by 100% in the past few weeks. You thought it was "too expensive" and waited for a correction. However, the correction never came and instead continued to skyrocket 10 times. Because this is a bull market, price is a narrative.
6. Chasing hot spots but missing them
-Early discovery, early participation, early exit
- Spot trends early (catch the wave)
- Investment participation (riding the wave)
- Take profits gradually (come down before the wave ends)
7. Not thinking from a retail investor’s perspective
Crypto Twitter != the entire space. You can end up getting caught up in too many things that only insiders will understand, and no one wants to spend time on TikTok, Instagram, and YouTube, reading comment sections. To understand ordinary people, you have to deal with ordinary people.
If you think it’s right✔️, please follow 🔴 and forward‼ ️
I want to learn please➕QQ: 3321443606
