The 'Crocodile Principle' – the trading rules of the greatest traders, a useful and simple trading rule – 'Crocodile Principle'.
Crocodile 4321 battle method practical operation
① 4: At least leave 40% of the total funds for adding to long-term coins, the specific method for adding to the position is:
For a certain long-term coin, add to the position with 10% of the total allocated funds for every 10% drop (for example: BTC
Plan to invest 400,000, after initially buying 120,000, add 40,000 for every 10% drop)
② 3: Use 30% of the total funds to allocate long-term value coins. Only add to the position, do not cut losses under normal circumstances.
(For example: plan a total investment of 1 million, invest 400,000 in BTC, 300,000 in ETH, and 300,000 in BNB, first
The initial actual allocation is 300,000, with 120,000 for BTC, 90,000 for ETH, and 90,000 for BNB);
③ 2: Use 20% of the funds to position long-term value coins, with a profit and loss stop at around 20%;
④ 1: Use 10% of the funds for short-term trading, quick entry and exit, with a profit and loss stop at around 5%-10%.
Knowing the overall allocation plan for the total funds, doesn’t it make you feel much more stable? But buying has its battles.
Is there a method?
Indeed there is! This is the phased 343 building method:
Once the coins to buy are determined, cash is also prepared. For example, initially allocate 300,000, with 120,000 for BTC.
① 3: Use 30% of the current funds to build a position, which is 36,000 (12 multiplied by 0.3) for the initial position;
② 4: If the price starts to rise after building a position, wait for the price correction, do not rush to add to the position, add to the position again after the price correction, at this time use 40% of the current funds to add to the position (any rise has a correction).
If the market is bad after building a position and starts to decline, every time the BTC price drops by 10%, use the remaining funds
10% of the funds to add to the position (3,600), until it is fully added, this situation is rare, of course even if it happens,
Do not be afraid, because it is a phased building of the position, your price has been averaged (and there is still 40% of the total funds waiting to be added to the position, refer to the 4 in the 4321 battle method)
③ 3: If the price starts to rise after adding to the position, wait for a price correction, and then add to the position again after the correction.
Use 30% of the current funds to add to the position, at this time the phased building of the position is completed.
Overcome fear and control greed!!!
Do not think about buying at the lowest point and selling at the highest point; we need a scientific investment strategy!!! Always thinking about buying at the lowest point and bottom-fishing is fear, because there is no lowest point, only lower points, and this will lead to missing the opportunity!
If you only want to sell at the highest point, you can only be trapped because there is no highest point in your mind.