Author: Rocky

In the last cycle, I successfully reached half of an A9, with an investment ROI close to 40 times, but the 519 turmoil and a two-year bear market caused me to lose nearly half of my assets.

Every bull market can make people wealthy, but it can quickly be lost due to inflated mindsets. Next, here are my 10 strategies on how to preserve profits and stay at the table in the market:

1. Smart Diversification

Cryptocurrency is a high-risk field; never put all your funds into 1-2 coins. Even projects like #LUNA, which once ranked in the top ten by market cap, can go to zero overnight. A reasonable investment portfolio and low correlation are key to maintaining position balance, while deciding your portfolio and quantity limits based on your capital size and risk tolerance.

• $500,000 - $5 million: around 10 coins
• $5 million - $50 million: around 20 coins
• Over $50 million: within 30 coins

Focus on areas you are familiar with and the core narratives of each cycle, such as the core narratives for 2023-2025:

AI # RWA # DEPIN # GAMEFI # SOL #. # MEME

2. Regular Portfolio Rebalancing

Investing is a tough job, especially in cryptocurrency, where variables change rapidly. Regularly tracking your holdings and rebalancing your portfolio is crucial.

Use a dashboard to connect your holdings through on-chain API data to your customized dashboard. Follow official Twitter accounts and communities to see the latest discussions.

For portfolio rebalancing, if a significant position has a large profit share, it can be dynamically balanced. Remember, the market rotates, and it’s important to smooth out peaks and valleys.

3. Risk Management

Develop a practical risk control strategy, using #BTC as a reference. Clearly define risk control principles and management plans. Set a drawdown threshold for your overall position to avoid wasting efforts. Remember that risk control managers should be independent from traders or researchers. Alternatively, automate execution through computers, avoiding emotional biases and nostalgia during risk control.

Our strategy is the 230 plan (similar to a private equity fund), with a 20% drawdown warning for the overall position and a 30% execution for liquidation. BTC serves as the benchmark.

4. Cautious in Greed, Greedy in Fear

The market is constantly facing FOMO and FUD. Due to the unregulated environment of cryptocurrency and the prevalence of social media, various voices emerge. However, investing is often counterintuitive. For example, on May 1, BTC was below 59,000, and FUD was severe. Many people saw 50k or 40k without logic, relying on technical analysis. If technical analysis could beat the market, many would be millionaires, especially now with #AI's support. So think independently, combining macro + micro + data + capital to make comprehensive market judgments based on probabilities.

57000 bottom-buying record: https://twitter.com/rocky_bitcoin/status/1787400620619776469?s=46…

5. Pay Attention to Market Sentiment

In the market, we often earn two types of money: emotional money and cyclical money. The former determines sector rotation, often driven by events. The latter determines position allocation, earning big money from cycles.

Identifying the end and trigger points of market sector rotations is crucial.

For example, the recent #RWA hype triggered by BlackRock saw many RWA projects triple or quadruple in just a week, such as #GFI and #RIO that we often mention. But after a wave of sentiment, the pendulum effect will dissipate. At this moment, timely doubling your principal or dynamically balancing your positions is essential.

Here are the experiences:

• Track search indices
• Track Twitter discussion heat
• Track smart money movements

6. Stay Hungry, Keep Learning

Focusing on your own sector is very important. Among the vast waters, only take a sip.

Everyone has limited energy and learning capacity; it’s impossible to cover everything. Focus on your sector, such as our main focus this cycle on #AI #RWA #SOL ecosystem #DEPIN #GAMEFI, even though there are also hot sectors like #Restaking, #MEME, and #modular. But we are less involved in those.

The best approach:

• Seek an organization where everyone collaborates, leveraging each other’s strengths and sharing resources
• Build a team where excellent people support each other
• Regularly participate in events; reading thousands of books is not as effective as guidance from a mentor

7. Protect Your Assets

Safety is always the top priority. I recommend users with over $100,000 to use cold wallets. Any exchange carries risks; only assets in your own hands are the safest. Learn from large institutions; they always store assets in cold wallets, using exchanges only as trading mediums. They only transfer in and out of exchanges when needed. At other times, assets remain in cold wallets. This is the lesson from #FTX, where many went bankrupt, including myself, suffering heavy losses.

8. Take Profits

This is crucial. For every cycle, plan and predict in advance what to do at what position, rather than always pushing forward. In the market, sometimes you need to push, and sometimes you need to pause; pausing is more important than pushing.

Our prediction:

In this cycle, we will have profit-taking plans at two nodes:

• Above $120,000, take 10% of your position for every 10% increase.
• In the 2nd-3rd quarter of 2025, we will liquidate our positions completely.

9. Stay Patient

Investing is a long-term endeavor. Extend the dimension of life, think and invest like Buffett.

Always remember to earn cyclical money; this is the secret to consistent success. Cycles are like a pendulum, never stopping. The world is a continuously replaying drama, with only slight changes in plot and characters, but the essential core remains the same. For example, the longest is the Kondratiev wave, interspersed with multiple Kuznets and Juglar cycles. We are always in recession ------ depression ------ recovery ------ prosperity ------ recession, just like the famous Merrill Lynch clock, cycling repeatedly. Opportunities always exist; wealth in life relies on the Kondratiev wave, while effort has limited effect.

10. Healthy Body and Stable Mindset

Skills + knowledge can be learned, but becoming a consistently successful investor is rare. The core is mindset and health. What can be learned is called investment variable variables; through the 10,000-hour rule, you can become a master or expert. However, the cultivation of mindset is an unquantifiable system, with innate factors (talent) and continuous improvement. The gap for most people lies not in skills + knowledge but more in mindset. It cannot be conveyed in words; it can only be realized through repeated heartbreak and market tempering.

Finally, I wish everyone happy investing and fruitful results in the 2023-2025 cycle! Grateful.