To hold on to profits, you need to avoid these 15 mistakes in a bull market

Original author: Edgy, crypto KOL

Original compilation: Deep Wave TechFlow

Although the current market is good, the end of the bull market At that time, most people will lose money.

They make preventable mistakes and lose life-changing fortunes.

So, here are 15 mistakes to avoid in a bull market (and how to prevent them):

1. Don’t take profits

No one cares what the highest price of your portfolio is, what matters is that you still have it at the end of the cycle. What is retained.

The picture below is an example of a system that you can adjust according to your risk tolerance.

Tips:

· If you feel like an investing genius or are taking screenshots to show off your gains, it’s time to take profits.

· Taking profits means converting some coins into fiat currencies, stablecoins or tokens for long-term investment, rather than putting them into riskier investments. high project.

· Make a cycle exit plan for yourself.

In the bear market of the past two years, you may have developed some bad habits. Strategies that work in a bear market don't work in a bull market.

Here are some examples of bad habits...

2. Follow Fundamentals, not upside

Bull markets are all speculative.

Look for projects that:

· Can generate hype

· There is a simple and easy-to-understand story. Can people understand why prices will rise in the future?

Too much fundamental analysis will destroy you.

3. Changing positions too quickly

Remember how narratives appeared and disappeared in a matter of days during a bear market?

Why? Existing market + lack of new liquidity = rapid change of market hot spots.

In a bull market, narratives last longer because there is more liquidity. Don't make yourself lose profits by changing positions frequently.

4. The momentum is weakening

The total market capitalization price of cryptocurrencies has increased by 100% in the past few weeks.

You think it's "too expensive" and you wait for a pullback that never comes.

It will go up another 10x because this is a bull market.

Price is a narrative.

5. Control the trends

You must discover trends as early as possible and control them as much as possible, and get off before they stop.

· Detect trends early (spot the wave)

· Invest (ride the waves)

· Make profits along the way, and Get out before the crash

6. Don’t think like a retail investor

Crypto Twitter is not the same to the entire crypto space. You end up with too many flywheels and governance issues that no one wants.

You should spend time on Tik Tok, IG (Instagram), Reddit and YouTube. To understand ordinary people, you have to spend time with them.

7. Don’t narrow the narrative scope

Focus on 2-3 narratives.

I know you want to "catch every opportunity that goes up," but if you spread yourself too thin, you won't have any advantage.

I think the following sectors will perform well in this cycle:

· AI

· RWA

· LRTfi

· Depin

· Meme

· Brc20

· GameFi

· L1/L2

8. Pursuing excessive returns

Stake tokens to get airdrop points? don't want.

Deposit tokens to get an extra 8%? It’s not worth the risk of smart contracts.

Remember those fools who deposited their tokens into Celsius to get an extra 5%?

Don't do this, you want their interest and they want your principal.

9. Panic during callbacks

There will be many pullbacks on the way to the highs. They are healthy and expected for the market.

Don’t use too high leverage at this time, otherwise you will be liquidated.

Don’t try to predict every pullback either.

10. Investment is too diversified

I've seen someone post a portfolio online before with more than 25 tokens.

You can’t keep up with that many projects.

And if one of the coins goes up super high, you won’t get that much return on your total position.

I think 5 - 7 tokens is the sweet spot.

The following is a simple investment portfolio for reference

· Long-term holding: BTC , ETH or SOL

· Narrative 1: Sector Alpha (leading) and coins that are likely to obtain excess returns

· Narrative 2: Sector Alpha (leading) and coins that are likely to obtain excess returns Coins

· Narration 3: Sector Alpha (leading) and coins likely to obtain excess returns

11. Pursue comparison

It is easy to feel that one’s own profits are relative to the profits of others on Twitter Very average.

The market has survivorship bias, don’t be too FOMO

I have seen this countless times This situation happened.

· Your coins can achieve 10 times the results

· But you feel that your performance is not as good as others

· Then pursue 50 times the profit, which ultimately leads to your failure

·Finally get 0 US dollars in profit

You might as well take profits gradually, Don't compare too much.

12. Don’t try to sell at the top

No one can perfectly grasp the peak of the cycle time.

Many people have lost wealth because they tried to sell the "top" but the timing was wrong.

Solution? Just sell gradually during the rise.

13. Revenge trading

If I lose money at poker, I will continue playing and become more aggressive in trying to win my money back. But this rarely works.

Don’t do this in cryptocurrencies. When you are losing money and are emotional, it proves that now is not the time to trade.

14. Not stopping losses fast enough

No one has a 100% winning rate. It's okay to fail, but it's not acceptable to persist as a loser.

Set some conditions before entering a trade. For example, if it drops more than 15%, cut your losses.

You ask, "But what if I sell it and the price goes up?"

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But the truth is:

· What if you hold it and it becomes $0?

· What if it stays stagnant and you can allocate it to other 10x coins?

There is an opportunity cost to your capital.

15. Understand investor psychology

Remember, the results of each cycle all different. We can have shorter or longer cycles.

Be flexible.

One thing remains constant: human psychology. Understand the herd mentality and greed mentality.

I know you are excited about the rising market. But I have seen countless people overestimate their abilities midway, resulting in profit taking.

You might as well keep things simple and keep a clear mind.

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