This guide will be especially useful for those that are feeling underexposed or lost after the recent pump.
Are you feeling underexposed?
Don't worry, this current rally is nothing compared to what happens during peak bull.
But if you haven't made a plan yet, now's the time to make sure you have one in place.
🧵: Here's a simple 5-step roadmap to make it in the bull run.👇
1. Create a watchlist.
Before you even think about buying, you must identify which coins you're bullish on.
This process takes time and a lot of research.
Start with a small list, and gradually add to it over time when you come across new projects.
2. Create a journal on excel.
Before you set your buy levels, write down WHY you're bullish.
It'll be much easier to hold an altcoin once you've established a clear thesis.
Also state your invalidation + time horizon.
Example:
3. Determine position sizing.
This is where you can gain (or lose) a huge edge.
On the excel, add a column for % portfolio weighting. This number represents your ideal position size.
Your risk profile, biases and goals will factor into which projects you weight heavier.
The easiest way to do this is to either weight by sector or by market cap.
Examples:
By Sector:
L1s (30%)
L2s (15%)
AI (10%)
Gaming (10%)
...
By market cap (this is my preferred method):
Large Caps (40%)
Mid Caps (30%)
Small Caps (20%)
Micro Caps (10%)
The exact %s you assign will be determined by your risk tolerance/goals.
4. Mark out your accumulation levels on the charts.
For this, the easiest thing to do is mark out key horizontal support levels on a HTF like the weekly or monthly.
Keep in mind, these are spot DCA levels only, not leverage (which requires much more nuanced entries).
I'll give you an example for a coin like $DYDX .
On the weekly, I've market out key horizontal S/R levels.
The green box is the ideal support buy zone, the orange/red levels could end up being support buys once validated.
For range low support buys (green box), the best course of action is to set limit orders on an exchange.
For confirmation buys on the break of a key HTF resistance (orange/red box), you'll need to be a little more active (for this I recommend setting alerts on TradingView).
Sometimes you'll be tempted to ape despite price not being on support.
This is normal.
If you have absolutely no exposure to a coin you're bullish on, there's nothing wrong with getting some initial skin in the game (can be 20-30% of ideal position size).
But for the majority of your capital, it's best to employ patience and save accumulation for range lows.
You'll be surprised how many times you'll get another nibble despite thinking you've missed the move.
$DOGE is an example.
5. Keep stables on the side for new projects. Why?
A) Some of next cycle's top performers haven't even been released yet.
Newer, shiny objects tend to outperform their older counterparts.
B) It prevents you from recklessly rotating out of a conviction-bag into a new trend.
This is one of the biggest mistakes people make if their holdings are underperforming.
You don't always need to narrative chase.
If a project is quality, eventually it creates its own narrative.
Recent examples are $LINK & $SOL . 2 months ago, both charts looked dead.
Often the best gains come from showing conviction and patience.
Quality rises to the top.
