When I woke up this morning, I sorted out my recent thoughts and made a brief summary on adding and reducing positions as follows:

1⃣After confirming the downward trend (from the macro, capital, and technical aspects), you should first reduce the copycat stocks, the copycat stocks among the copycat stocks, and then reduce the value blue chips.

a) Left side: defensive reduction of positions can be carried out based on the macro-capital side (left side).

b) Right side: You can also reduce your position in the first 4 hours or the first working day of a decline (right side).

c) Remedial position reduction: Another type is position reduction during a rebound. This type is remedial in nature. Many people miss the left side and the right side, and end up lying flat. This is wrong. The opportunity to reduce positions is the same as the opportunity to increase positions. The market will give you opportunities. It depends on whether you can seize them. Reducing positions during a rebound is also an important means of reducing positions.

2⃣ When the token is first reduced, it should be reduced to U, and then gradually reduced to BTC;

a) What is the reason? Because the decline is a process, a period, because the early stage of the downward trend is just the beginning of the free fall (the early reduction of positions to U is to protect profits, and the later reduction of positions to BTC is to prevent reversal). That is the "early stage of the disease", and it takes time for the disease to deepen, improve, and disappear.

b) What should I do if there is a reversal when reducing my position? What types of reversals are there?

Generally speaking, the general downward trend can be as short as a few days or as long as a few weeks (a decline in a bull market). In order to prevent a reversal, you should first reduce it to U and then to BTC to prevent a V-shaped reversal. The later reduction to BTC or even the conversion of your original to BTC is to prevent a V-shaped reversal. (More V-shaped conversions in a bull market)

3⃣ Emotional and cognitive confrontation during position reduction:

a) Many people do not want to reduce their positions because they expect the stock to rise and recover in the next trading day. This is an emotional cognitive error.

b) A rebound during a decline is a scam, don’t buy at the bottom, don’t buy at the bottom!

Remember not to buy on a rebound during a decline. Don’t trust the “scumbag”! Many people think that a rebound is a reversal and emotionally believe that their money will be returned.

This is a "rebound in a downward trend", which is a good opportunity to reduce your position (rescue opportunity). Please don't miss it. For example, in the rebound yesterday morning, I immediately reduced the last position I should have reduced (the day before yesterday in HK, the position reduction was not sufficient)

c) Don’t compare with your original cost, even if it’s all profit! Many people always find excuses for not reducing their positions or delaying reducing their positions. One is that they think their coin is currently profitable, and the other is that it’s all moonbags and all profits. In fact, they are all money, and the general trend doesn’t care how much you cost before! Moobbags are also money! Profits are also money! They are all money, why are they different? ! This is what I said before, "Loss of money and less money earned are all money, there is no essential difference!

d) During the reduction of positions, except for Type B with independent market conditions. For example, $AERO

I didn't lose weight, but it actually increased. Of course, this also needs to be closely monitored.

PS: In the downward trend, while gradually reducing positions, you should open your BN account from time to time to experience the process (when your position is rising, refresh your BN account every few minutes every day, and refresh it when it plummets?

4⃣When will the position reduction end? (When will the position reduction stop and the position increase start):

a) Adding positions after an upward trend is established (right side) or adding positions during a period of consolidation in the late stage of a decline (left side)

In fact, it is the opposite of the above. Macro indicators, capital indicators, etc. can be viewed in reverse.

b) When adding positions, add BTC first, then add value blue chips, and finally add meme (similar to the above)

Usually, after a decline, the market will maintain a period of consolidation (but the bull market will have a V-shaped reversal). At this time, it depends on the length of time. If it is about 1-3 days, you can exchange it for BTC. After the trend reversal is established and it starts to rise, you can exchange BTC for blue chip value coins, meme coins, and altcoins.