I am an investor who believes in philosophy. I often say things that sound ordinary but I think are full of philosophical truths, and I follow them as guidelines in my trading practice.
For example, I often like to say that if your goal is to make money, then your behavior must support the results you want. Never do anything that deviates from your goal and behavior.
Because in reality, many people operate like this: they do 20x contracts without knowing anything, and they cannot control the contracts at all, but they still feel like they have to take a chance, and the result of the gamble is liquidation; sometimes they know that a certain coin is a Ponzi scheme, but they still gamble, always thinking that they are not the last one to take the position, and finally they are cut off from the market. This is a very typical deviation between purpose and behavior. The behavior has basically determined the result. You think this way, but you do that.
Conversely, to make money, you need to do things that can directly generate income. Don't take detours, and don't let your actions exceed your capabilities. This principle applies equally to trading cryptocurrencies; when selecting targets and managing funds, you cannot aim to make money while always doing things that are hard to profit from. To earn money, you must choose good targets and put in the effort to think carefully. You cannot rely on wishful thinking or hearsay to select coins, nor can you buy coins that haven't risen just because you see other coins going up. Doing so is likely to lead to a divergence between purpose and action, and even if you make money on some occasions, it will be luck, and sooner or later, you will lose it back.
Similarly, in fund management, leverage should not be set too high; the higher the leverage, the greater the risk exposure, which will hinder your goal of making money. So today, I am mainly organizing the selection criteria for quality targets and the mindset of fund management as I see it. I hope everyone can find good targets, match efficient fund management strategies, do things that resonate with both purpose and action, think seriously, execute simply, and extract wealth in the crypto circle.
Quality target selection:
In my mind, selecting quality targets is the top priority in crypto investment and is more important than judging direction. If the target is right, you can say that the investment is already half successful. If investing is like building a skyscraper, then selecting targets is the foundation of that skyscraper. Only by solidifying the foundation can you build the skyscraper higher. Therefore, it is very important to select good targets. Only by finding good targets can the so-called value investment philosophy, trading psychology, simplistic thinking, philosophical thinking, etc., play a positive role; otherwise, no matter how good the investment methods are, they will become poisons that hinder you from making money.
For example, for many altcoins, you cannot hold them with a value mindset or a dollar-cost averaging mindset. Just look at CoinMarketCap; altcoins that have dropped over 200 times are everywhere, and many of them are from projects that have basically stalled. If you invest in such targets with a conventional investment philosophy, you might have already been liquidated several times.
It is obvious that the ultimate pursuit of selecting targets is to find those with high risk resistance and potential high returns. However, the development stage of crypto assets is relatively early, and there is currently no perfect asset valuation model, while the valuation logic of traditional financial markets does not apply in the crypto space.
In the crypto space, special methods are needed to handle special circumstances. Below are the selection criteria I have summarized myself:
1. Look at project positioning: track, vision. These contents are basically written in the white paper and can also be learned through participating in project activities to hear the founder's presentation. The main point is to clarify what problem the project aims to solve from a personal understanding perspective; whether the described field needs to be solved through blockchain; what are the project's expectations and vision for the future market; whether the project's ceiling is high enough. From this perspective, it is definitely necessary to choose projects that have a wide track, a high ceiling, and great imaginative space, such as public chains and platform tokens.
2. Look at team strength: this can also be seen through the white paper and various other means. Mainly understand the team's background, financial strength, technical strength, the structure of the founding team, investment institutions, etc. Understand from multiple dimensions whether the team’s overall strength matches the project they are doing, and what investment institutions are behind them, and how strong those investment institutions are;
3. Look at the chip structure: this is very important, after all, this is what we are trading. How much is the total amount of chips, what are the respective issuance costs, how large is the circulating supply, what is the circulation model, what is the economic model of the token in the project, and is it sustainable? This information is mainly to assess whether the project pricing is reasonable, which can be understood as a very important indicator of fundamentals;
4. Look at community consensus: in simple terms, just see how many fans the project has. This includes the countries the project covers, community size, overall popularity, and which exchanges it has listed on;
Among these four items, project positioning and team strength are the foundational aspects, mainly looking at how strong they are. Only projects with strength can have topics and speculative space. On this basis, chip structure and community consensus are the core factors that truly determine the price of crypto assets at this stage.
To put it bluntly, if a coin cannot find actual assets as support, its value at any time is completely determined by market speculation. If the speculative space is large and community consensus is strong, the price can be driven high. If you can catch the general rise in market enthusiasm, it can skyrocket. A typical example is EOS, which once had a circulating market value of over 100 billion, how glorious it was!
In a bull market, we must not miss any opportunity to ensure continuous returns. If you desire to double your capital, want to make a big profit, or want to break even, follow me for daily layout experience and comment 333 to get on board.
