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The best time to change positions in the crypto is actually...

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This is the key to the trading operation idea that everyone likes. This time we will talk about position switching. The following position switching only discusses the non-USDT situation in the secondary market. Why do we need to switch positions? Because in addition to following the rise and fall of the market, each currency will also have its own independent fluctuations based on the news and fundamentals. By making good use of these independent fluctuations, we can seek benefits and avoid harm, increase returns and reduce losses. For example, if you have half of the token A, which has not performed well recently, you switch to token B. B has risen and A has fallen. You feel good. This is a very simple success . What is the ideal state for position switching? The coin you bought with your cross margin has risen. You switch to the next one, and it rises again. You switch to the next one, and it rises again. No matter how you switch, it rises. The market doubles, and you earn ten times or a hundred times. This is the legendary doubling . Just think about it and you will know how difficult it is. In fact, everyone is entangled in position switching, and the losses they have suffered are even greater. There are embarrassing situations for position switching , such as the following two scenarios 1. Random changes in the rising cycle
When is the most frequent position switching? It must be when a large number of coins are flying around. Look at that coin, it has doubled, why do I only have 10%! How about switching to a sector coin that may be linked? After you switch, you find that it still hasn’t risen, and others have risen again, so you switch again. As you switch, you start to want to chase those that have been pulling the market, chasing those you don’t understand, and as you chase, you find that the coin you gave up at the beginning has skyrocketed, and all your efforts have been in vain! Such a familiar scene and such skillful operation are the true portrayal of most people. What problem does it reflect? In a bull market, there is never a lack of desire to switch positions. It is easy for everyone to disrupt their trading plans. If you can’t hold on to your valuable coins for exchange, it is better not to change. 2. Play dead
On the contrary, when the market is cold and the prices are falling sharply, and you haven't had time to stop loss, your assets have been cut in half. What is your decision at this time? "Anyway, it's already like this, don't look at it, just leave it there and wait for it to go up again." Right, it's too common, isn't it? Regardless of whether it can go up or not, I ask you, at this time, will you choose to change your position? Even if it's because you bought so many messy coins when it was rising? Even if you know in your heart that most of them are powerless to turn the tide? Probably not, after all, facing the bleakness of assets is so heartbreaking. I want to say, it's a pity that you have lost a good opportunity to clean up and restart yourself. The time when you really should change your position is when you are stuck in a big drop! (The most real thing is that you are stuck with a full position. If you don't change your position, you don't have the bullet to buy the dips at the bottom. It's uncomfortable, right? Isn't it, my dears)
Why do you change positions after a sharp drop? It's very simple, because at this time you need to heal the pain of the bull market. You have a lot of messy coins in your hands. How hard it is to wait for them to rise again. And only after a round of currency plummets, you can understand the value of each currency based on the decline of each currency. Some small spicy chickens are almost zero, and the hot leading ones may rebound immediately to lick their wounds. It hurts, but it is useful, very useful. Assuming that the bull market is still there, we are faced with the choice of rethinking which assets have stronger rebound strength, better quality, you like more, and are more familiar with them, and then firmly change to them . For example, during this round of sharp drop, you previously rushed up a new meme that you were not familiar with, and it fell by 70%. It hurts, look at the wif that you have always been interested in, it hasn't fallen much, why not sell the small spicy chicken and change it to wif? You may think that this change is equivalent to a loss hammer? What if the small spicy chicken rebounds very well and becomes a golden dog?
What if wif doesn’t fall much, and won’t rise much? You know, I lost 70%, and only 30% of my assets are left. I need to rise 330% to get my money back. Can wif rise so much? It’s better to hold the little spicy chicken and wait for it to turn around. Is it really so? First of all, the world is wide when chasing dragons . Reality has whipped us again and again, telling us that the leader’s increase is really exaggerated. Recently, every time the leader takes the lead, which time can be without the hot meme? The high-consensus currency that can enter the public’s field of vision is enough to make money comfortably. Then, do you think it is more comfortable to hold a little spicy chicken that makes people worry about ups and downs, or to hold a strong hot leader? The advantage of value coins is that they can always rise back after falling. The stability of mentality brought by this certainty is very important, which helps you to steadily defend the cost and lock in profits , but can the little spicy chicken do it? If you encounter a situation where the value coin and the little spicy chicken have a similar decline, you must decisively change your position. How can you miss those cars that you want to get on but can’t get on?
Finally, according to the basic principles of position management, try to start with the currencies with high certainty of heavy positions, and slowly extend to the currencies with high risks and high potential according to your strength . Besides, there are still advantages and disadvantages in the same level of currencies. You can even exchange the currency with less decline for the currency with larger decline to try to rebound. My view is that it is more appropriate to change positions if it occurs during the cool-off period of the plunge. Maybe, I mean maybe, the truly rational and reasonable position change can only be made after the plunge is locked in. The temporary small correction cannot prevent arrogance and impatience, and the mess has to be made up. When the tide recedes, the real value depression can be revealed. A blessing in disguise. Changing positions is just another way of bottom- buy the dips. People with courage will not sit and wait for death.
How to change? 1. After the big drop, the general desire of coin friends is to ask which one to buy the dips?
It just so happens that rapid investment research has become possible, so hurry up and study it, otherwise the price will rise~ (So, investment research must be stimulated again and again!) 2. Redo position management After a big drop, isn’t it a new beginning? Redo position management, forget about past failures, redefine all costs, no need to recover, I will strive to do better next time (this is too inhumane and requires too much courage) 3. Dare to clear all the small spicy chicken coins. If your small spicy chickens are all zero-cost, it’s okay to hold them, because they don’t take up energy. If you lose money, it is recommended to clear them. One asset is one attention. It is difficult for one person to grasp the management of so many assets, just like a teacher teaching five students and teaching fifty students. The difference was huge at the time. You are right to work hard to get on the account, but you can’t play with too many investments even if you work hard. The specific details of changing positions depend on your personal operations. I hope this article can bring you hope. Even if you are fully invested in chasing highs and are trapped, you are still surrounded by infinite possibilities and bathed in the light of rationality.

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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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