If yesterday's market movements scared you, it means you're making some serious investment mistakes.
It's okay to make mistakes once, but don't repeat them.
Here are the 5 main rules you MUST follow:
1. Coin Drop
Whenever you buy a coin, you MUST always consider this factor.
This could be a fundamental trigger (e.g., loss of credibility, a hack, the departure of a key team member) or a technical trigger (break of a key HTF level, loss of strength), etc.
Never buy altcoins without:
1. Genuine fundamental conviction in the asset you're purchasing.
2. A set of verification parameters for entering a position.
3. A set of invalidation parameters for exiting a position (very important).
Additional advice: partial drop.
For example, if BTC falls below $60K, sell 30% of your position.
This leads to the next point.
Controversial opinion: Yes, "panic selling" (also known as "de-risking") is acceptable if it means protecting your wealth.
To win the game, you need to stay in it.
2. Reduce Risk Early
If you’re going to reduce risk, do it at the beginning of a move, not at the end.
Of course, it's impossible to know exactly how long a move will last.
But generally, if you smell smoke, there’s likely a fire, and it will probably align with a technical break.
If it's a false alarm, you can always buy back during a support recovery, take a 5% loss, and move on.
If the move continues, you can re-enter at a lower level or wait for a clear setup.
It’s worth losing 5% to protect against a 50% loss.
Be ruthless in protecting your capital, and this will make you a much better trader/investor.