Five investment rules
1. Consider and observe the project from multiple angles. Do not follow the crowd. There have been many scam projects in the crypto space that, once the founder runs away, there is no way to hold them legally accountable.
2. Understand blockchain-related knowledge, know the industry pain points that blockchain addresses, before entering the cryptocurrency space.
3. For the projects you want to invest in, you must have a comprehensive understanding. Know whether the project genuinely uses blockchain technology, if its founder has publicly disclosed their identity and has a credible background, whether the project's business logic is closely linked to the token, and if there are similar projects in the same industry addressing pain points. If the project succeeds, does it have the potential to be profitable in real life?
4. If you cannot accurately assess the project prospects of a coin, do not invest more than 20% of your assets in blockchain investments, and do not put all your eggs in one basket.
5. Quality projects will also experience price fluctuations. Treat them with a calm mindset. For investment projects you are optimistic about, do not focus too much on the price in the short term. Pay attention to whether the team's development progress aligns with the white paper. Additionally, only by holding for the long term can you ultimately earn more returns.
Ten trading rules
First, do not easily be deceived into selling low-priced chips. Stay firm in your belief to prevent market manipulators from crashing the price.
Second, chasing highs and cutting losses, going all in is always a taboo. When the overall trend is favorable, building positions in batches during a downturn involves lower risks, lower costs, and greater profits than chasing highs.
Third, reasonably allocate profits to maximize capital release rather than continually adding funds.
Fourth, take profits on rapid rises and hold coins during steep declines. Maintain a positive mindset at all times, avoid speculation, impatience, greed, and fear, and do not engage in unprepared battles.
Fifth, the low-priced coins in the front are based on experience and the market maker's bet on the coin's future. The secondary market game relies on technology and information while following the market maker's lead. Do not lose sight of the fundamentals, or you will end up in confusion.
Sixth, when building positions and exiting, always do so in layers, gradually widening the price levels to effectively control the risk-to-profit ratio.
Seventh, be familiar with the linkage effect, watch the market while trading coins, and pay attention to the trends of other coins. Each coin is not isolated in the market; it seems unrelated but is actually deeply interconnected. Understanding the linkage effect is important for coins. Many tools are now available to check coin information and news.
Eighth, asset allocation should be reasonable. The allocation of hot coins and value coins must be balanced, paying attention to the stress resistance and profit intake ratio. Being too conservative may cause you to miss opportunities, while being too aggressive may expose you to high risks! The biggest feature of value coins is stability, while hot coins are characterized by high volatility, which can either soar or plummet.
Ninth, having coins in the market, cash in your account, and money in your pocket is the safest and most reassuring standard configuration. Do not go all in; that will lead to failure. Understanding risk control and reasonable capital allocation is key to your mindset and success or failure. Investing with spare cash is fundamental.
Tenth, master the basic operations, learn to apply knowledge from one situation to another, grasp the basic ideas of trading, and observation is the prerequisite. Remember the highs and lows of each trade as reference data. Learn to keep records and summarize materials, develop a reading habit, and cultivate the ability to filter and sift through information.
Stable investment plan
Position control, never easily go all in. The reason for not going all in is crucial.
The first point is risk control. You cannot guarantee that your investment will immediately increase in value. If you encounter a market crash, your assets may be significantly discounted, and you cannot average down.
The second point is mindset control. I have personally experienced that after going all in, I keep staring at the market, which severely affects my mindset. I even struggle to sleep well.
The third point is the tendency to get 'cut as leeks', having a gambling mentality, wanting to see your profits change every moment. After going all in, if you see your coin price not rising shortly, and other coins are increasing or if you see other coins you want to buy, you might panic sell and buy, leading to diminishing returns.
Long-term position 30-40%, hold for a long time
Short-term position 30-40%. Why short-term trading exists: many people say short-term trading is bound to lose money. However, with proper long-term capital allocation, trading coins can be very interesting. I believe most people cannot resist their impulses. As long as you control your position and avoid frequent losses, short-term trading usually leads to profits (unless there are issues with the project or the market). Refer to my position control above. Not every coin's long-term performance is better than short-term gains.
I am Ayue, focusing on analysis and teaching, a mentor and friend on your investment journey! I hope everyone investing in the market can have a smooth journey. As an analyst, the most basic responsibility is to help everyone make money. I will solve your confusion, provide operational advice, and speak with strength. When you are lost and don’t know what to do, look to Ayue (homepage) for guidance.