Recently, many people have been thinking: "I have been waiting for a price lower than 1,000,000, but now, what is the price? It will not fall below 2.5,000,000 in the short term. Should I enter the market? I am afraid of going short!"
Bitcoin has nearly doubled from its low price. Friends who are shorting at 1w5, stop loss at 2w, and wait and see at 2w5 probably have this idea. Why can’t Bitcoin fall? From 2w5 to 1w9, from 3w1 to 2w7, the declines are all traps of bullies. If you have all the funds in hand, but don’t spend a penny on Bitcoin, it will be uncomfortable no matter how high it goes. You can’t wait for the next one. A bull market.
If you want to allocate funds at a reasonable price, the first step is to establish your own price. Of course, I believe that no one wants to buy at a high price. If you want to buy at 1w5, or even 2w, you can accept it. If you want to go down, you have to understand the reason why it can’t go down. If you pull up twice, once with a 20-point increase, and once with a 10-point increase, most of them will go short + don’t give retail investors a chance to enter the market, then there will still be high points. , combined with the point, look at the resistance of 3w2 to see whether it is a sudden breakthrough or a sudden collapse. With preliminary analysis, you can establish your initial position for opening a position. If there is a second decline, you can open a position at 2w5 to 2w6, or if it rises and breaks through 3w2, you can also open a position. The purpose of opening a position is always to reduce the risk of going short rather than to take advantage of larger gains. The position of subsequent positions can also be judged based on this to reduce costs.
The second is to enter the market in batches. Positions are not established overnight. If you want to get the maximum profit, you must add positions at a reasonable position to share the cost. Therefore, similarly, there are multiple price levels in mind, and one batch corresponds to one price. For the division of your own funds, 3-6 points is enough.
The third is currency selection. The market’s top choices are Bitcoin and Ethereum. Bitcoin is the market benchmark and the leader in the currency circle. Compared with altcoins, its growth rate is generally smaller and the price is expensive (relatively speaking). It is the best choice for financial management; Ethereum, as the leader of altcoins, has gradually stabilized its position as the second most popular altcoin, relatively speaking. It has a larger rise and fall than Bitcoin, and the rise was once not as good as Bitcoin, but it still has investment value in the long run. However, the market's current expectations for Ethereum are too high, and the possibility of a sharp decline cannot be ruled out. There is no investment advice for other altcoins. If you have any ideas, the position recommendation should not exceed 30%.
My friend, I wish you good fortune and financial freedom in the next bull market!
