Trading Insights in a Volatile Market

Recently, the crypto market has been very volatile, with BTC repeatedly jumping between 30,000 and 40,000. This type of market tests one’s mindset the most. My current strategy is 'stability first': increase mainstream coin positions to 70%, with BTC and ETH each accounting for 30%, leaving 10% for old coins like LTC that are more resilient, solidifying my foundation so I don’t panic when it drops.

For new coins, only dare to test with 5% of my position. Recently, I tried a Layer 2 concept coin, which surged at the opening, but on-chain data showed that major holders were quietly selling. I monitored the capital flow, and when it reached the expected level, I sold, making a small profit. If it were in the past, I might have greedily held on, resulting in likely being trapped.

Set stop-loss lines more strictly than usual; cut losses if mainstream coins drop 5%, and don't hesitate if new coins drop 8%. In a volatile market, the worst thing is to 'wait for a rebound'; waiting can lead to being deeply trapped. For example, last week ETH suddenly spiked down to 3800, and I cut a portion of my position according to discipline. Although it rebounded afterward, I have no regrets—discipline is more important than a one-time lucky break.

Don't trust messages that guarantee profits; behind every doubling myth are countless people losing their principal. Spend 1 hour a day looking at on-chain data (like changes in holdings on Glassnode), study one project white paper each week, and after three months, your market judgment will be completely different. The crypto space is not short of opportunities; what's lacking is the patience to wait for opportunities—let's motivate each other.