A fierce operation, can't escape the curse of 'holdCut Loss and sell flying'? · Bosen Quantitative Robot

The arrival of the bull run has filled many investors with anticipation. However, the high market sentiment does not guarantee profit in every trade. Looking back at past trading experiences, failures often provide valuable lessons. This article will share two lessons from failures to help Newbies avoid repeating the same mistakes.

Author: 1912212.eth, Foresight News. Repost: Boson Quantitative Consultant Xiaosun (bosen0722)

Be cautious when investing in new coins at the end of a Bull Market

In the second half of 2021, DYDX became the focus of market follow. At that time, with the advantage of huge Airdrop and Derivatives track, DYDX price quickly pumped. I entered a position near $10 and doubled my profit in just one week. At first, I thought the price would continue to pump, but soon the market began to fall, and DYDX peaked in early November, followed by a big dump. I failed to sell in time and eventually Cut Loss at around $2.

The lesson from this failure is that one should not have overly high expectations for the return on new coins at the end of a bull market. Despite the high market sentiment, new coins often have high volatility, leading to excessive speculation, and investors are prone to miss the best selling opportunity. In contrast, early-stage projects such as DOT and NEAR often achieve sustainable and good returns.

Wait for the wind or chase it?

In early 2024, the author Heavy Position purchased ONDO tokens on CoinList, with an average cost of $0.3. At that time, ONDO was the representative currency of the RWA zone, and the market had not yet fully exerted its strength, so the author had confidence in holding it. However, as the market changed, the price of ONDO never pumped, but instead became the only 'lost' currency in the memecoin wave. Seeing the surge of memecoins, the author decided to adjust the Position and instead invest in currencies such as BONK, FLOKI, and ZK, ultimately causing the price of ONDO to suddenly soar to $1.95, while the author missed this pump.

The failure of this operation lies in being too impetuous and relying excessively on short-term Fluctuation rather than long-term value. When the market zone rotates rapidly and emotions Fluctuation greatly, investors are prone to change their strategies due to missing short-term gains, ultimately missing out on larger profits.

Do not easily change the zone rotation

In the Bull Market, the rotation speed of the market zones is very fast. Once a certain zone becomes hot, investors are prone to the impulse of chasing after the hotspots, but this operation often brings high risks. I failed to maintain enough patience when changing positions, and my Position experienced a downward trend in the short term. Especially when the memecoin hype has passed, once the Position is adjusted, it becomes Tied Up.

When the market's hot spots are rotating, investors should avoid blindly following the trend. They should deeply understand the changes in the market, avoid sticking to losing assets when the heat subsides. Have enough patience, stick to your investment principles, and not be influenced by short-term Fluctuation in the market when making decisions.

Make a clear trading plan

Each trade should have a clear reason and plan. If investment decisions are based on market noise or KOL recommendations without their own judgment, it is easy to be trapped at the peak. One of the author's failed experiences is not having enough thinking and preparation before trading, simply following the trend leading to losses.

When trading, you should ask yourself, 'Why do I want to buy this underlying asset? Is this reason convincing enough for myself?' If you cannot answer these questions clearly and simply, this investment opportunity may not be suitable for you. In a bull run, market sentiment can easily lead to impulsive decisions, but rational decision-making is more important.

Summary: Learn from failure

In the Fluctuation cycle, we need to pay special attention to the following points:

Choose new coins carefully: In the late stage of a bull market, do not blindly chase after new coins, especially when market sentiment is high, and return expectations should be kept rational.

Be patient: do not easily change Position because of short-term Fluctuation. When the market zones rotate, it is important to have enough patience and avoid being disturbed by market noise.

Clear trading plan: have a clear goal and reason before each trade to avoid following the crowd.

Avoid emotional decision-making: Market fluctuations can affect investors' emotions, but staying calm and rational is more important.

In both Bull Market and Bear Market, investors need to continuously learn and adjust strategies, accumulate experience, and constantly improve their trading skills and mindset.

What can ordinary people do?

【No investment or financial advice, crypto world is risky, invest with caution!】

I don't have much time to study, and I don't want to be distracted and contribute real money to others. If you want to make a profit in the encryption industry, you can try quantitative strategies, such as using the CCR intelligent Spot robot and CCG contract quantitative robot to control positions reasonably, use big data to calculate the timing of trading entry and take profit, and liberate manpower!