My framework is aimed at the mindset of ordinary people. What is an ordinary person? It's someone who panics when others panic, who goes crazy when others go crazy. Therefore, when an ordinary person buys falling assets, they will feel anxious every day. Watching their own losses while others gain will lead to emotional outbursts. Ultimately, they decide to sell their losing assets that are not rising and chase the hot ones.
However, the likely outcome of this approach is that the assets sold will rise, and the ones bought will fall. Because of mean reversion, style rotation, and the fact that most people do this, while most people cannot make money.
So, you need to have a hard rule: buy into clearly stable assets as a base, and do not be swayed; otherwise, winning or losing is just a superficial process.
Additionally, aside from the first rule, there is a prerequisite: the things you buy should not be expensive.
If you buy into a position at $SOL nearly 300 points all in, you may need to wait longer to make a profit. If you buy after a drop of 60%-70% and then use various strategies to lower your cost, your chances of making a profit will increase.
Once again.
Ordinary people have only ordinary abilities and emotions. Ordinary people can only avoid making foolish decisions by using strategies to restrain themselves. Cutting a little here today, and a little there tomorrow, will lead to diminishing capital and ultimately to total defeat.
Therefore, the strategies suitable for ordinary people are mainly:
First, the assets will not die. High certainty.
Second, the cost of buying.
Third, selling, taking profits subsequently.
Design strategies and execute strategies to survive.