Is a bull market suitable for swing trading? | Q&A

1. I felt that ORDI on Binance would also pull back, so I sold 4 digits at 12 yuan. For someone who doesn't like to swing trade, this was my most failed operation.

This is a comment from a reader under my article "The Investment Journey of ORDI" published on March 6.

Seeing this comment reminded me of my past experience: a long time ago, when I first entered the investment market and started investing in the stock market, I was fascinated by swing trading.

At that time, whenever I saw on the internet how some "big shot" achieved mythical stories through swing trading with a particular stock during a certain period, I felt like I had found the "Nine Yin Manual," and I was overjoyed. I always tried to understand the techniques and indicators inside.

But in the end, I had no fate with this trading method. Not only did I not achieve those myths, but I also suffered huge losses. "There is no greater sorrow than a dead heart." Since then, I have lost all interest in this trading method.

2. What is NAT?

The NAT based on digital physical theory that I mentioned in the article refers to DMT-NAT. For specifics, you can refer to
https://ordinalswallet.com/collection/tap-DMT-NAT.

There are many articles online about this protocol; you can search for DMT NAT. This concept is quite interesting, but currently, there aren't many projects based on it.

3. None of the coins I hold are rising; is there still hope?

This question probably can only be asked of oneself.

We can think about it: is the lack of increase due to the coin itself having problems, or is the market temporarily ignoring it? If the coin has no issues and is just being temporarily overlooked by the market, then it's not a big problem. Because in a bull market, basically every sector will rotate, and as long as the coin has no issues, it will eventually rotate.

If you're unsure whether your coin has problems, you can recall why you bought it in the first place. Now, take another look at whether the reasons you bought it still hold true.

If you can't answer these questions, it proves that you still don't understand it. Since you don't understand and feel anxious and hopeless, it might be better to simply convert everything into Bitcoin and Ethereum.

4. As a newcomer to the crypto world, I haven't experienced a complete bull and bear market and have no concept of risk. In 2021, I mortgaged my house at the end of the bull market and then suffered for three years; only this year do I see hope.

Seeing this reader's comment, I felt a bit anxious for him.

I have always advocated that investments should be made with spare money, and absolutely not with money that affects your life, let alone using mortgaged assets to raise capital.

Using such high leverage for trading carries significant risks. I think the fact that this operation didn't go wrong is just luck, but everyone's good luck is limited. Once you have a stroke of bad luck, everything can be lost.

Moreover, even if the final result is good, operating with such high leverage can cause significant psychological and physiological damage. During this process, living in constant fear and anxiety can lead to psychological and physiological issues before you even see the fruits of victory. And once there are health problems, no amount of money will help.

5. After reading Vitalik's article, he mentioned that if faced with a quantum attack, Ethereum could adopt a rollback approach. What do you think of this method?

I understand that Vitalik is talking about measures in very extreme situations. However, if this situation really occurs, it wouldn't be surprising for Vitalik to do this. Because after the last DAO incident, Ethereum took such actions.

I believe such situations should be avoided as much as possible. Because once it happens, whether or not to roll back will hurt at least half of the community's consensus.

Additionally, I think the probability of such a situation occurring is very low, and there are already deployments and arrangements for quantum resistance in Ethereum's future development path. The Ethereum community also has dedicated teams researching quantum resistance.

So overall, I'm not too worried about Ethereum facing quantum attacks.