Learn in E-minute: The core investment rules for retail investors to make steady profits
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The crypto market is volatile and unpredictable, but the classic investment principles still apply. Combining the golden investment rules of legendary stock investor Peter Lynch, individual investors in the high-risk crypto environment also have a stable strategy to follow. From understanding the fundamentals of the project to avoiding chasing the highs, Lynch's wisdom provides crypto investors with a clear path, helping us find balance and returns in the turbulent market.
1. Researching the fundamentals is key: Delve into the technical advantages, founding team, and future plans of the project. Simply buying low-priced stocks or tokens without understanding the project carries great risk.
2. The advantage of individual investors lies in their unique knowledge and experience: As investors, you can leverage your understanding of new tracks and community observation to choose projects you are optimistic about in familiar tracks and seize growth opportunities.
3. Focus on the company/project, not just the stock/token price: Stocks are backed by companies, understand how they operate, not just blindly bet on stock price increases. Tokens are backed by technological innovation, development progress, and community activity, not just short-term price fluctuations.
4. Avoid a gambling mentality: Investing heavily with a "bet it all" mentality can lead to huge losses. The crypto market is highly volatile, avoid going all-in or chasing the highs excessively.
5. Focus on the long-term, not short-term price fluctuations: Company performance and stock price performance are related in the long run. The short-term price fluctuations of crypto projects may be disconnected from their actual development, but in the long run, quality projects will return to their intrinsic value. Therefore, be patient with projects with long-term potential and avoid being affected by short-term fluctuations.
6. When you can't find opportunities, stay on the sidelines: When you can't find suitable investment targets, keep your funds safe and wait for better investment opportunities.
7. Streamline your investment portfolio: Don't hold too many stocks/tokens, research and closely follow the dynamics of carefully selected stocks/tokens, rather than diversifying across a large number of assets, to ensure you have a good understanding of each project.
8. Avoid chasing the hype: Avoid the popular tracks in hot industries, and look for projects/companies with real technological innovation, as they have more long-term growth potential.
9. Be prepared for market downturns: Market downturns are also good buying opportunities, be psychologically prepared, and patiently wait for low prices to buy quality tokens when the market is down, rather than panicking and selling at a loss.
10. Don't be swayed by news: Focus on the fundamentals of the company/project. Crypto market news is frequent and emotional, don't panic due to short-term negative news, but focus on the project's technological progress and community feedback.
11. DYOR: Extensive research can help you find good companies/projects. In-depth research on multiple projects can help you identify potential future winners.
12. The longer you hold quality projects, the greater the returns: Holding good company stocks for the long term will yield greater returns. Similarly, while the crypto market has large price fluctuations, maintaining long-term holdings of quality projects can still provide stable returns. Even if you miss the early gains, long-term holding of quality tokens remains a prudent strategy.
13. If you don't have time to research, choose mainstream stocks/tokens: If you don't have time to research emerging projects, you can choose widely accepted mainstream coins as long-term holding targets.
Allocate funds reasonably, control the risk of each investment, and don't let trading turn into gambling. This issue of "E Minute" hopes to help everyone avoid risks and achieve more stable returns in the highly volatile market through the classic investment wisdom of Peter Lynch. As the global partner of the Argentine national team, 4E provides a one-stop trading platform covering more than 600 assets including crypto, US stocks, indices, forex, and commodities, and has specially launched a novice simulation account to help everyone get started easily. If you are interested in investing, feel free to experience the convenience and security of professional trading.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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