In the face of market instability, it is best to avoid high-risk, high-volatility Altcoins and high-leverage contracts. If you must participate, you can choose mainstream cryptocurrencies such as ETH, SOL, and BNB, which have stronger risk resistance during market fluctuations. The best time to consider Altcoin catch-up opportunities is when the market regains strength.
The core strategy at the current stage is to focus on defense and preserve the principal. Only by surviving can you be involved in the subsequent second and third waves of the market. Steady and stable progress is the key to going further in the bull market.
The core of bull market trading: planning and execution are equally important
To achieve stable returns in the bull market, trading plans and execution are crucial. Position control and zero-cost operations are not just talk, but practical strategies.
1. Zero-cost strategy: reduce risk, increase returns
The concept of zero-cost means that in a bull market, you first recover the invested principal, and the remaining positions are all profits. For example, we built a position in COMP at $71, and it reached a high of $144, doubling in value. We sold the position that covered the initial investment, and the remaining part is pure profit. In this case, no matter how the market fluctuates in the short term, you can remain calm because your principal has been safely withdrawn.
The advantages of this operation are:
If the market adjusts, you won't panic or be anxious about losses.
If it goes up, you can continue to earn; if it goes down, since you have already recovered your principal, your capital will not be hurt.
2. Quality Altcoins: keep a bottom position, avoid "selling out"
For some carefully selected quality Altcoins, such as FET at $1.3, DASH at $35, and PEPE at $115, it is difficult to see such low prices again unless there is a major negative market event. If you sell out completely during the uptrend, you may miss out on subsequent gains.
Coping strategy:
Sell in batches, keep a portion of the bottom position, and try to achieve zero-cost holding.
Holding principle: Learn to gradually reduce positions when making profits, rather than clearing all at once.
This trading system is not complicated, the difficulty lies in strict execution. Reasonable position planning can help you go further in the bull market.
3. Clearing strategy: step-by-step clearing, reduce decision-making mistakes
When the market reaches a high point, clearing should be done in steps:
First, reduce half the position, then decide whether to clear the remaining position based on market dynamics.
Avoid one-time clearing, as no one can accurately predict the market's top or bottom.
Observe market signals, such as hot spots frequently appearing on the list and the Altcoin speculation index hitting new highs, as these are potential warnings of a top.
Macroeconomic data and market dynamics: stay sharp, be flexible
This week, several key inflation data will be released at the macroeconomic level, directly affecting the Federal Reserve's monetary policy direction. Pay attention to the following data:
Wednesday: Consumer Price Index (CPI)
Thursday: Producer Price Index (PPI)
The market generally expects the inflation data to rise slightly, but this will not change the overall expectation of a rate cut in December. A continuous 72-hour decline is not common, so the possibility of a short-term rebound is relatively high.
Other influencing factors:
Policy dynamics: such as MSTR's inclusion in the QQQ index, the implementation of FASB accounting standards, and the Fed and Bank of Japan policy meetings.
Political factors: Trump may take office again in January 2025, and rumors suggest he hopes to push Bitcoin to $150,000, which may also drive the simultaneous rise of ETH and other Altcoins.
Holiday factors: changes in market sentiment around Christmas.
In summary: trading requires execution, and the bull market requires planning
The market is changing rapidly, and we need keen market instincts and strict execution. Profiting in a bull market is not only about buying at the right time, but also about selling at the right time. After the trend is formed, the accuracy of the entry point is no longer the most critical factor, and the key is to grasp the exit point well to avoid failing at the top.
Only by truly taking action and executing properly can you laugh all the way in the bull market!
Finally, there are still many things that have not been written down, such as specific opportunities and specific decisions, which are often not something that can be summarized in a single article.
If you want to learn more about the secrets of wealth, or if you have any doubts, follow the public account: Caijing Dongchen
