Spot position reduction techniques
I got up this morning and sorted out my recent thoughts. I also made a brief summary about position reduction as follows:
1⃣After confirming the downward trend (macro, capital, and technical aspects), you should first reduce the cottage, the cottage in the cottage. Secondly, reduce the value blue chip.
a) Left side: Among them, you can first reduce the defensive position based on the macro and capital aspects (left side),
b) Right side: You can also reduce the position in the first 4 hours or the first working day of the decline (right side).
c) Remedial position reduction: There is also a kind of position reduction in the rebound. This category is of a remedial nature. Many people missed the left side and the right side, and finally lay flat. This is wrong. The opportunity to reduce the position is the same as the opportunity to increase the position. The market will give it to you. It depends on whether you can seize it. Reducing the position in the rebound is also an important means of reducing the position.
2⃣ When you start reducing for the first time, you should reduce it to U first, and then reduce it to BTC in the subsequent reductions;
a) What is the reason? Because the decline is a process, a period, because the early stage of the downward trend is just the beginning of the free fall (the early reduction to U is to protect profits, and the later reduction to BTC is to prevent reversal). That is the "early stage of the disease", and the deepening of the disease, improvement, and the disappearance of sequelae will take time.
b) What if there is a reversal when reducing positions? What types of reversals are there?
Generally speaking, the general downward trend is as short as a few days or as long as a few weeks (a decline in a bull market). In order to prevent it from reversing, it should be reduced to U first and then to BTC to prevent its V-shaped reversal. Later reduction to BTC or even changing your original to BTC is to prevent V-shaped reversal. (Bull market has more V-shaped reversals)
3⃣ Emotional cognitive confrontation in reducing positions:
a) The reason why many people do not want to reduce positions is that they expect it to rise and recover on the next trading day. This is an emotional cognitive error.
b) The rebound in the decline is a scam, don't buy the bottom, don't buy the bottom!
Remember not to get on the rebound in the decline. Don't believe in "scumbags"! Many people think that the rebound is a reversal, and emotionally think that their money will come back.
This is a "rebound in a downward trend", which is actually a good opportunity to reduce positions (rescue opportunities). Please don't miss it. For example, during the rebound yesterday morning, I immediately reduced the last position I should have reduced (the day before yesterday in HK, the reduction was not sufficient)
c) Don't compare with your original cost, even if it's all profit! Many people always find reasons for not reducing positions or delaying reduction of positions. One is that they think their coin is currently profitable, and the other is that it's all moonbags and all profits. In fact, it's all money. The general trend doesn't care how much you cost before! Moobbags are also money! Profits are also money! They are all money, why are they different? ! This is what I said before, "Loss money and less money earned are all money, there is no essential difference!
d) In the reduction of positions, except for type B with independent market conditions. For example, this time's $AERO
I didn't reduce it, but it still rose. Of course, this also needs to be closely observed.
PS: In the downward trend, in the process of gradually reducing positions. You should open your BN account from time to time to experience the process (when you are rising, refresh your BN account every few minutes every day, and refresh it when it plummets?
4⃣When will the reduction of positions end? (That is, when to stop reducing positions and start increasing positions):
a) Add positions after the upward trend is established (right side) or add positions when the market is consolidating in the late stage of decline (left side)
In fact, it is the opposite of the above. Macro indicators, capital indicators, etc. can be viewed in reverse.
b) When adding positions, add BTC first, then add value blue chips, and finally add meme (similar to the above)
Usually, it is more likely to maintain a period of consolidation after the decline (but the bull market has a V-shaped reversal), so at this time it depends on the length of time. If it is about 1-3 days, you can change it to BTC, wait for the trend reversal to be established, and then change BTC to blue chip value coins\meme coins\altcoins after the rise begins.
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#5月市场关键事件 #Megadrop