Sharing four investment strategies that combine traditional finance, which will greatly help you improve the stability and success rate of your investments.
This is investment theory, not investment advice, so please do your own research (#DYOR )
1.Satellite strategy
Originated in the 1990s, this strategy divides assets into two categories: stable, long-term income assets and high-risk, high-return assets.
The main position is allocated to stable assets, while a small portion of funds is allocated to high-risk assets.
Common classic configurations include allocating the main position to #BTC and #ETH , and allocating the small position to coins with higher growth potential.
The advantage of this strategy is that it effectively reduces investment risk while obtaining higher returns.
2.Martingale strategy
A common gambling strategy at Las Vegas casinos, in which the player continuously bets on one side of the bet, and doubles the bet for each loss until they win.
This can recover all the losses and win the amount of the original bet. It can be understood as a doubling strategy for adding positions.
When the price falls by a certain percentage, the position is doubled. The advantage of this strategy is that it can quickly reduce the average cost of holding positions, but the disadvantage is that it has poor operability and requires a lot of capital.
3.Bottom-position strategy
Purchase 10% (or a self-set proportion) of the total funds as the bottom position and hold it without trading regardless of price fluctuations.
The bottom-position strategy is simple to operate and can alleviate the fear of missing the market, while also better complementing subsequent continuing trading positions.
4.Mean reversion strategy
This strategy stands in opposition to trend investing, and the core logic is that investors tend to overreact to market movements, which can cause markets to rise or fall too much too quickly, but markets will eventually return to rationality. Therefore, the strategy involves selling when overbought and buying when oversold, making it a relatively contrarian trading strategy.