Looking at the floating loss in my account, I tell myself: Panic is the best helper for the market makers, and calmness is the most useful weapon for retail investors.
Recently, the market software is dazzlingly popular, and people around me are sharing profit screenshots every day. I can't help but think of the three significant declines I experienced in this bull market. The first time I saw my assets shrink by 30%, I was sweating in my palms and couldn't sleep all night; during the third time facing the same magnitude of decline, I was able to calmly execute my planned strategy.
Those who have truly experienced the market's baptism understand that a bull market is not a continuous surge but opportunities that arise from declines. Today, I want to share how I not only preserved my capital but also accumulated valuable experience during the three 'dives' in this bull market based on my personal experience.
First time: 'Ghost stories' washout, revealing the truth amid panic.
That morning, I woke up to find that the mainstream coins I held had dropped from $5,000 to $3,500, and the community was instantly overwhelmed with comments about 'projects running away' and 'the industry is going to cool down.' Even several old players were panic selling, and market sentiment dropped to freezing point.
But I noticed a key signal: despite the sharp drop in prices, the turnover rate was unusually low. This tells me that most steadfast holders did not sell, and it is very likely that the operators are using panic to flush out weak retail investors.
I decided not to follow the loss-cutting, but instead divided my funds into five batches, investing one batch every two days, never leaving all my bullets fired at once. Sure enough, 20 days later, the market began to warm up, and those who sold in panic fell before dawn.
The essence of washing the盘 is a psychological battle. Operators create panic to make retail investors hand over their chips at low levels. The response is simple: write a plan before investing, and decide whether to increase positions, wait, or cut losses when prices drop to a certain point; do not let market sentiment dictate your decisions.
Second time: 'Get on the bus bell' fluctuations; don't let FOMO lead you.
When the Metaverse coin fell from $250 to $200 and then quickly rebounded within five days, the community was instantly filled with the frenzy of 'adjustment means free money.' Many newcomers were afraid of missing the opportunity and rushed in with all their funds.
I resisted the anxiety of 'not buying means losing' and strictly followed two rules: first, only use 30% of the funds to test the waters; second, set a strict stop-loss line and exit immediately if it falls below $215.
As a result, the Metaverse coin quickly fell back after hitting a new high, and those who chased high prices were trapped at the peak. In a bull market, making money is easy, but holding onto profits is difficult. Regularly taking profits and transferring some to cold wallets is key to preserving gains.
An important lesson I learned is: do not trade out of boredom. Often, we make frequent moves simply out of the impulse to 'do something' rather than seizing genuine opportunities.
Third time: 'Ghost changes face' trapping, seeing through the trap of enticing more buyers.
The ecological coin suddenly plummeted, seemingly similar to the previous two drops, but this time I discovered two danger signals: the community crazily shouted 'last chance to get on the bus,' and negative news was forcefully interpreted as 'good news'; meanwhile, the turnover rate suddenly skyrocketed, which was obviously a trap for enticing more buyers.
I immediately cut my position by half and transferred funds to safer channels. Sure enough, after this drop, the coin price never returned to the highs, and many who tried to catch the bottom were stuck halfway up the mountain.
When the market begins to confuse the senses, it is often a precursor to a turning point. I realized that this round of the bull market is no longer a general rise; only local opportunities are worth grasping.
My three life-saving bottom lines.
1. Keep a close eye on the turnover rate and understand market sentiment.
The turnover rate is an important indicator of measuring the market's real sentiment. A low turnover rate during a washout period indicates that real holders are confident, while a sudden spike in turnover after a sharp decline may signal fund exits.
2. Never be fully invested; maintain flexibility.
No matter how enticing the 'new highs will definitely break' hype is, I will not be fooled. Always keep at least half of the cash in reserve, which can not only cope with sudden declines but also allow for proactive attacks when opportunities arise.
3. Strictly separate funds; protect the bottom line of living.
I completely separated my investment funds from my living expenses, placing core assets in safe channels. Even if I make a wrong judgment, it will not affect my normal life, which allows me to remain rational in decision-making.
Bull market thinking needs to keep up with the times.
Unlike in the past, this round of the bull market is led by institutional funds, making it a harsh reality that 90% of retail investors find it hard to make a profit. The previous 'hold' strategy may no longer be applicable and requires more flexible responses.
My principle is: for early projects, look at potential; for mid-term projects, look at trends; for late-stage projects, look at risks. Never chase after hot projects that have already been hyped, because when everyone is discussing it, the value is often fully reflected in the market.
Conclusion: Holding the bottom line is more important than guessing the market.
This round of the bull market has made me deeply realize that the fundamental principles of not being greedy, not being fully invested, and not following the crowd are more valuable than accurately predicting the market. The 'roller coaster' in a bull market will always come, and the real winners are those who can remain rational and stick to their plans even during declines.
The current cryptocurrency market is no longer a general rise; it requires sharper vision and stronger discipline. Remember, the market is never short of opportunities; what is lacking is investors who can still stick to their strategies amid panic and greed.
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