Yesterday, on 30/10, when #BTC☀ reached a price >73, many questions were raised about whether the market had entered an uptrend? There were also numerous analyses indicating that the market could be in an uptrend or not. Just like somewhere, a fortune teller might say, "the first child will be either a boy or a girl." But do you think there are opportunities for you if the market is in an uptrend?
Hold: For those of you who are holding long-term, the uptrend market is like a lifeline. If you are holding losses, or have been DCAing for too long, this is your opportunity to break even and take profits. However, we cannot determine when the uptrend will happen, how long it will last, or how high it will go. Therefore, the mentality of taking profits is a choice. But if the market keeps rising, surpassing your profit-taking point, a mentality forms that makes you want to buy back at a higher price. Or the market creates false reversal phases that make you think the market is turning to start DCAing again. This trap will put you in a state of chasing the high, and all that you have accumulated will return to nothing, continuing to wait and hope.
Trader (no futures): For those of you trading spot, all markets are essentially the same. Even if the market rises, buying and selling at a set value brings stable profits; however, the uptrend does not help your asset grow. However, there is a deadly trap set here. Some of you spread your capital; an uptrend leads to a large amount of surplus cash (more than 70% of capital), which leads to a mentality of increasing volume for each order or buying new codes to optimize cash flow and increase compound interest. However, in an uptrend, the risk of sudden reversals is high. At this point, you may chase the high and miss capital when the market drops.
Future: For those of you trading futures in both directions, the uptrend has even less significance. Regardless of the time, the market always creates oscillation rhythms. And you surf based on these short-term reversal fluctuations. The risks of futures have been analyzed previously. They always carry such risks and do not depend on the trend. It is also not something I choose in investing.
In summary: Whether the market is in an uptrend or not is not too important; if it happens, the opportunities for us are very few, while the traps and risks increase. Therefore, we should study and learn a long-term, sustainable method for all market situations.
"To eat a lot, you must eat little; eat little to live long, live long to eat a lot."
