Brothers, do you still remember the '519' from the year before last? Do you remember the chain reaction triggered by the collapse of a major platform last year? In the crypto circle, 'black swan' events are never accidental but rather the norm! A few days ago, a fan told me that he lost over 400,000 in a sudden negative market situation because he wasn't prepared. Now he can't even focus on eating. As someone who has experienced countless black swans in the crypto circle, I can responsibly say that black swans are not scary; what’s scary is not having a risk control plan to deal with them. Today, I will share with you 3 'black swan resistance' techniques that I’ve kept in reserve. Once you learn them, you can even survive extreme market conditions!
The first tip: Establish a 'risk reserve fund.' This is the first line of defense against black swans. Many people invest all their spare cash and even use leverage; when a black swan event occurs, they have no room for maneuver. My approach is to always keep 30%-50% of my funds as a risk reserve, regardless of how good the market seems. This money must not be touched, even in the most favorable market conditions. What is the purpose of this fund? For example, during a black swan event when prices drop significantly, you can use this money to buy the dip and lower your holding costs; or if your position is stopped out, this money gives you a chance to re-enter. Remember, the risk reserve is like your 'lifesaving money'; you must protect it and not have any complacent mindset.
The second tip: Diversify your investments, do not put all your eggs in one basket. Diversification here does not mean buying dozens or hundreds of cryptocurrencies, but rather spreading across different types and sectors of cryptocurrencies. For example, you can allocate some funds to buy mainstream coins like Bitcoin and Ethereum, some to quality coins in the DeFi and NFT sectors, and some to stablecoins as temporary risk-averse funds. The benefit of this approach is that even if one sector encounters a black swan, such as widespread defaults in the DeFi sector, other sectors may not be significantly affected, thereby reducing overall risk. Additionally, pay attention to cross-platform diversification; do not put all funds on one trading platform. If an issue arises with that platform, your funds could be trapped.
The third tip: Develop a 'black swan response plan' and practice it in advance. Many people panic when facing a black swan, either blindly selling at a loss or blindly buying the dip, resulting in greater losses with each action. The correct approach is to have a response plan ready in advance. For example, what to do if there is sudden bad news and the price drops by 15%? What about a 30% drop? Should you stop-loss, average down, or remain on the sidelines? Write all of this down and practice it in advance so that when faced with actual situations, you won’t panic. My plan is, when a black swan event occurs, to first pause all operations and calmly analyze the severity of the bad news. If it's a short-term negative, like slight regulatory adjustments, I will choose to wait and not blindly sell at a loss; if it's a long-term negative, like a global ban on cryptocurrencies, I will decisively cut losses to preserve remaining funds.
Here’s an example from my own experience: when a major platform collapsed last year, I had already noticed liquidity issues with the platform, so I transferred most of my funds to other platforms in advance and kept some stablecoins. When the news of the collapse broke, prices plummeted, and many panicked and sold at a loss. However, because I had a plan, I remained calm and bought some mainstream coins when prices reached critical support levels. Later, when prices rebounded, not only did I not incur losses, but I also made a profit. Therefore, being prepared in advance for a black swan is more important than anything else.
In addition, I want to remind everyone not to 'bet on a reversal' during black swan events. Many people think that the price has dropped significantly and will definitely rebound, so they heavily invest in buying the dip, only to see prices continue to fall. Remember, in a black swan event, the trend is paramount. Do not go against the trend. Even if you want to buy the dip, do it cautiously, for example, using no more than 5% of your total funds to test the waters. Even if you incur losses, it won't have a major impact. Also, during a black swan event, information is very chaotic. Do not easily believe various rumors online. Learn to analyze for yourself, such as checking official announcements and authoritative media reports, to avoid being misled by false information.
That's all for today's black swan resistance tips. If you find it useful, brothers, quickly like, bookmark, and share it with your friends in cryptocurrency trading, so they can also be prepared. Follow me, next time I will detail several major historical black swan events, analyze the response methods and lessons learned at that time, and help everyone better improve their risk control plans. What experiences have you had during previous black swan events? Did you lose or gain? If you currently feel helpless and confused in trading, and want to learn more about the cryptocurrency world and cutting-edge information, follow me@帝王讲趋势 .
