(A guide to the US stock market for cryptocurrency players - soon to advance from a novice)
After studying the US stock market for about a year, it turns out there are no new things in the financial sector. The seemingly high-end US stocks still have a significant emotional component, with price fluctuations carrying a wonderful rhythm, which feels very similar to the cryptocurrency circle.
With an article, you can directly identify your role and know how to play.
But the difference is that within this volatility, there is an unchanging main line: if a company has development and profit, its stock price will continue to rise.
Therefore, value investors generally end up smiling.
However, the consensus, emotions, narratives, chip distribution, and the speed of dumb money inflow are actually consistent, and we still have a lot to gain.
Many rules in the cryptocurrency circle still apply particularly well to many high-risk tech stocks, especially small-cap stocks, for example:
1. Don't have faith
2. Take profits when you can
3. Be steady when bottom fishing
And so on
Because competition in tech stocks is fierce, profits take time to materialize, and everyone is trading on expectations. What are expectations? MEME is the most typical example.
Therefore, the suitable way for cryptocurrency people to trade U.S. stocks is threefold:
1. If you are holding BTC in the cryptocurrency circle
and not looking at others, then just buy $VOO and $QQQ
which correspond to the large-cap and tech indices, and every time there is a 20% pullback, invest and reap the rewards.
(The chart shows the Nasdaq 100's performance after the internet bubble; if the AI bubble bursts, it would be great to see a repeat.)
2. If you are a meme coin player
then you can pay attention to various new narratives and main lines, as you may catch popular stocks like aerospace storage.
These stocks and meme coins in the cryptocurrency circle are consistent in the short term, which is to surge, then pull back, and finally return to value.
For example, storage is very hot right now, but what about next year? The year after? Storage has cycles; when demand increases, production expands, and when production exceeds demand, prices fall—discussing super cycles implies a drop.
Moreover, after meme coin players make money, what is the best practice? Buy Bitcoin, right? And there’s no faith; if it flies away, so be it; the next one will be better.
You can do the same with U.S. stocks; if you make money, convert it into indices, and if you think even the indices are unstable and want to earn interest, then buy:
$SGOV short-term treasury bonds, directly yielding 4.1% annualized, and can be liquidated anytime to bottom fish.
You can also buy gold or silver ETFs: $GLDM $SLV
You can also convert to Bitcoin ETFs: $IBIT
These four ETFs are all very good ETFs, with high trading volume and safety, and GLDM has an extremely low management fee.
3. If you are a MEME expert
then you can use MEME strategies, focusing more on short-term emotional swings, playing news, playing narratives, and playing reversals—all are fine.
Then to increase your win rate, it's still the same; after making money, convert it to the aforementioned categories of ETFs, and emphasize again:
Large-cap and tech stock index ETFs: $VOO and $QQQ
Gold or silver ETFs: $GLDM $SLV
Bitcoin ETFs: $IBIT
Overall, there’s nothing difficult about U.S. stocks. It’s quite amusing to see some old-school investors in U.S. stocks looking down on the cryptocurrency circle, thinking they are superior just because they wear long gowns.
You don't need to know that the character '回' has nine different ways to be written; you just need to find a rhythm that suits you.
You will definitely succeed!