Some advice for friends experiencing a bull market for the first time

Source: Talking about Li and the DAO

There are many ways to make money. Apart from luck, most of them are about monetizing cognition, regardless of whether the method is good or bad.

--- --- --- --- Old Leeks (Group Partner)

Recently, through messages from partners in the background, I can sense that many people are just entering this field and are experiencing a bull market for the first time.

Before providing specific suggestions, let's think about a few questions together:

What brought you into this circle?

What is your current work or life situation?

What are your future efforts and goals?

What are your expectations for profits and losses, respectively?

Whether in the capital market or in work and life, we are always in a constantly changing environment. We cannot change the cyclical nature of the larger environment, but we can find a relatively balanced strategy within it.

1. If this is your first bull market, treat trading as a side job

In a bull market, it’s easy to develop the illusion that "making money is too easy." If you currently have a stable job and income, trading in the crypto market can be a way to expand your skills. Don’t question or give up your current job just because you’ve made some quick money temporarily. Don’t stay in place looking for answers; keep moving forward while searching.

Bull markets are temporary; long waits and patient layouts are the norm in trading. While doing well in your main job, improve your understanding of your side job, calm down to experience a complete market cycle, and trade with small amounts of money. Understanding the market, from questioning it to comprehending it, and then participating in it, is not something that can be grasped overnight.

Only when your side job has enough strength to support your life can you consider turning it into your main job, or even further pursue what you truly yearn for.

2. There are ways to play with small amounts of capital, and there are ways to play with large amounts of capital

If you don’t participate in trading, you won’t understand the market. If you go all in, you can easily be manipulated by the market.

Things that are readily available in life are often easy to lose again. Only by first understanding the rules can you utilize them. Anyone entering the capital market should first gain awareness, then monetize it.

Therefore, the second suggestion for those participating in trading for the first time is: for the first round of bull market trading, use only the portion of funds that you can afford to lose without affecting your normal life. Because making money is a bonus, losing is a cheap tuition fee, and being trapped is a low-cost experience in trading. Your life will not become worse because of this; with a stable mindset, your subsequent trading actions will not distort.

3. Profit-taking and stop-loss strategies

A partner in the group once said: Money can’t be earned endlessly, but it can be lost completely. Don’t pursue a win rate of 100%; there’s no one who achieves 100%.

The constantly changing numbers are the floating profits and losses that capital carefully presents to you. Set a selling strategy for yourself and adjust it regularly based on market trends. The success of trading ultimately depends on human nature, and failure also returns to human nature. Trading is a process of constantly experiencing inner struggles, tasting both sweetness and bitterness, and is a grand inner practice. When the month is profitable, it will also incur losses; when water is full, it will overflow. Profit-taking is stability, and securing profits is peace of mind.

4. Pay attention to market sentiment, don’t be overly optimistic or pessimistic

Pay attention to market sentiment and don’t let excessive optimism or pessimism affect you.

A typical characteristic of a bull market is emotionality; market sentiment can become very optimistic with rising prices, but it can also turn extremely pessimistic due to short-term corrections.

Learn to control your emotions through rational analysis; don’t be lured by the market’s excessive optimism, and don’t panic due to short-term price fluctuations.

Focus on fundamental analysis and long-term trends, and don’t just look at short-term price changes.

5. Record and review your investments

Record your buying and selling decisions and the reasons behind them. The fast pace of a bull market can easily lead to confusion; regularly reviewing your investment strategies and decisions can help avoid emotional decision-making and allow you to learn from past decisions.

6. Don’t be gullible and get scammed

You can be tempted, but don’t get scammed.

Be wary of promises that are "too good to be true," avoid "phishing websites" and malicious links, regularly check your accounts and transaction records, and understand common types of scams.

For those just entering the crypto market, you are here to make money, not to give it away.