What is the controllable range: Here we need to mention that the key point to be discussed in the bottom analysis is: the best entry point. The "best entry point" is actually a region. When is the best entry point? It is hard to say whether the price will rise after buying, but it will not fall much. Even if it falls, the price is within the controllable range. It corresponds to the "cryptocurrency sentiment theory", which is the "dead silence" stage. At this stage, it cannot be said to be completely dead, but it has reached my judgment range.
What is the relative bottom: For example, when the trading enthusiasm of the entire market drops to the freezing point, the price fluctuation of stable assets will not be too large. For several months or even more than a year, the profit and loss data on the account will not change much every day. My understanding is that as the garbage time gets longer, it will slowly reach the relative bottom. The darkness before dawn is the most difficult to endure and is the nightmare of professional traders because it is difficult to make a profit. So I use "dead silence" to define the market at this stage. "Dead silence" = "relative bottom", but there is no doubt that "dead silence" is the best time to enter the market, and it will also give us enough time to increase our positions to a suitable and ideal state.
So, how can we manage positions scientifically and increase positions to the ideal state?
The core idea is two dimensions: space + time. If space is insufficient, time will make up for it. First, set two points, one is the initial point and the other is the limit point. The initial point is the point where the position is opened for the first time, and the limit point is the point where the position is liquidated.
During the "dead silence" stage, some people made plans for a large drop, but the actual drop may not be too large. In this case, it is necessary to increase positions in the time dimension to make up for the lack of positions in the space dimension in order to reach the target position level.
Therefore, what I have to do is to use scientific position management methods during the "dead silence" stage to gradually fill up my positions until I can no longer add to them. According to my experience, as long as I use the two dimensions of space + time to build positions in an orderly manner during the "dead silence" stage, the comprehensive holding cost will not be higher than 10% of the market lowest price.
After reasonable arrangements, the policies and strategies are strictly implemented, rather than waiting after all-in. It is not difficult to transfer enough wealth in this circle. Only by getting enough and cheap chips at the end of the bear market can you have a big harvest in the upcoming bull market. Many people understand this truth, but I really implement this set of principles. The unity of knowledge and action is a very important topic, especially for medium and long-term investment.
The current market is volatile. Whether you are keen on Heyue or spot trading, you can check out the introduction to find me. After the sharp drop in the market, I am also optimistic about several potential coins and am ready to lay out.