Can you really hold onto your assets until the end of this round of bull market?
First, let me share a technique that you can hold onto, including why you should separate short-term and long-term positions?
With the premise that the big trend is definitely upward, what we are discussing now is how to allocate long-term holdings and short-term holdings properly. For example, how much percentage of your position to allocate for long-term strategies, and how much for short-term speculative trades.
The purpose of doing this is to ensure that you not only avoid the risk of missing out during this round but also reduce the risk of roller-coaster trading.
Many people don't know when to sell, so I tell everyone that the speculative assets you buy can have a 50% increase, and selling a normal 30% is not a problem.
Because no one has infinite bullets, when you sell some, can you buy the next one? Of course, it’s better if the remaining core position can run up and double, allowing you to withdraw your initial capital and achieve zero-cost holding. This way, when adjustments come, you won’t panic.
Don’t chase highs; when the speculative position reaches the profit point, you should take some profits. I’ve seen too many people unwilling to reduce their positions and end up riding the roller coaster.
As for the other half of the long-term position, just follow the target levels you set in your mind. Don’t worry about the current market fluctuations; what’s important now is to have a solid strategy for your short-term trades.
If you still don’t understand why you must separate long and short positions, carefully review the content above, follow me for communication and exchange, or if you don’t know how to plan, that’s fine too.
