Expert says: How to achieve "small goals" of 1 million during a bull market?

24-02-06 16:00

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Original title: "Talking about 3 coins, the next day Binance added 2! 5 big shots teach 24 years of investment logic | Bestselling Space Essence Speed Reading"

Original source: Followin

This article is from Followin's annual Twitter Space - "How to achieve 'small goals' in a bull market with only 1 million?"

Nina Xiaoerduo (@Web3Nina) serves as the host, and the guests are five experienced practitioners (male gods) who have been in the industry for 23 years and have achieved great success.

1. Zhang Xiaoyu (@xiaoyuz), a well-known hedge fund manager;

2. Chen Jian (@jason_chen998), a powerhouse in Crypto investment research.

3、Haotian (@tmel0211), former researcher at Amber;

4. Zhongbensuan (@KillerWhalesDAO), focuses on exploring alpha opportunities in Solana, DePin, AI+ and other fields.

5、BTCdayu(@BTCdayu), Web3 researcher.

They gave their opinions on four different questions:

What was your most satisfying investment in the cryptocurrency industry in the past 23 years? Please describe the operation, logic, and gains.

2, 5 minute quick summary of investment system? The underlying framework for making money.

3. Where are the opportunities in the 24-year cycle? Which tracks and fields are worth paying attention to?

4. With only 100,000 U, which coins can help you return to the peak?

The following content is from Space, edited by Followin.

Followin Annual Space Question 1: What was your most satisfying cryptocurrency investment in the past 23 years?

【Zhang Xiaoyu】

One of the most successful investments in 2023 was ORDI. The initial price was between 3-6U when it entered.

Speaking of ORDI, on one hand, it's about making money, and on the other hand, I believe it's a breakthrough in my investment style and approach.

At the beginning of my career in the cryptocurrency industry, I didn't invest in very early projects because I couldn't tell if they were reliable and could succeed. In this industry, projects don't necessarily have a strong product concept, but rather rely on strong cash flow expectations.

Using traditional financial world's explanation, ORDI at several U is still in Pre-A round or angel round. At this point, it is difficult to judge whether it can last long, whether the trend is established, and whether the traffic can be sustained.

The reason why I invest is twofold. Firstly, my risk appetite is indeed higher after 23 years. Additionally, I believe that in the Crypto industry, one should dare to invest in relatively early projects, especially when new assets, new tracks, and new trends emerge.

Not only is it about having the courage to invest, but also about the degree of investment. As I watched it rise higher and higher in value, I decided to add more investment. When it rose and then fell to $46, I sold a portion, but later when it rose back up to over $50, I added more investment. Overall, I made many decisions that I wouldn't have made before. There were some breakthroughs in terms of psychology and mindset.

【Haotian】

I am quite satisfied with Solana in the public chain field and bought in at the bottom.

Why bottom-fishing? In the previous round of public chain competition, it was said that Ethereum would be killed. This round's narrative is about who will become a supplement to Ethereum, achieving performance that Ethereum cannot achieve, and attracting the Ethereum ecosystem.

From this logic, Solana has the opportunity. At that time, Solana was not performing well due to SBF and chain downtime, but after research, it was found that its performance was actually superior due to its support for high concurrency at the underlying technology level, approaching the capabilities of Web2, and providing infrastructure services for the crypto industry. It holds various hackathons every year, has active developers, and its founder has diverse backgrounds. The price is also low. So I think there is some opportunity.

And then there's Metis. At the time, I thought that the Layer2 Four Kings ecosystem was a mess, with no real technological progress and stagnation, especially in the area of decentralized sorters. But I realized that it wasn't a matter of technology, but rather a lack of willingness to innovate. They relied on sorters to reach the pinnacle of their power and were unwilling to let go. That's when I knew that there would be a project that would challenge them on this point. Metis was a breath of fresh air, focusing on real technology. They successfully copied the bottom line.

Therefore, I invest from the perspectives of narrative, business, and ecological positioning.

【中本蒜】

translates to

【中本蒜】

in English.

【BTCdayu】

【Haotian】

I have been in the cryptocurrency industry for seven or eight years, and for a long time I was very confused. I was very busy and tired, but in the end I didn't make much money. I want to "improve my skills", do deeper research on benchmarks, grasp better entry points based on technology, control positions, in short, strive for "the ultimate".

Finally, it was discovered that it was all a dead end! What to do in the end? Don't add, subtract. Don't make a move unless there is a particularly good opportunity. What is considered a perfect opportunity? First, you need to understand what a garbage opportunity is. I summarize it as the "five don'ts".

1. If the overall market situation is not good, do not place orders.

Be patient and wait for the overall market trend. Often times, we are afraid of missing out on the wealth code and rush to enter the market. However, in every bull market, BTC experiences at least 3-5 pullbacks of more than 20%. You will definitely have the opportunity to wait for such a significant pullback.

2. Don't do singles without deep research.

Many experts will tell you that this coin is very powerful, but if you don't research it yourself, you won't be able to hold onto it and you don't deserve to earn this money.

3. Technical form is not good, do not place orders.

This is to break the information silo. The more you research a certain coin, the more bullish you become. Besides the fundamentals, there are some decisive factors that you cannot see, such as chip structure and key figures manipulating the market. My experience is to use technical analysis as a supplement. When there is a conflict between fundamental and technical analysis, I always listen to the technical side.

4. If the risk-reward ratio is not ideal, do not take the trade.

Opportunities for asymmetry, as mentioned by Teacher Zhang, are particularly ideal for finding risk-reward ratios.

5. Do not place orders when feeling unwell.

After suffering significant losses, there is a strong desire to recover the losses quickly. However, it is not advisable to trade after experiencing significant losses. Similarly, after making significant profits, it is also not advisable to trade as you may become complacent and take on higher risks. Whether it is profits or capital, it is still money and should be treated with caution.

What is the heaviest warehouse below? Answer: Go deep into research and choose Heavy Warehouse.

Some people switch between different self-defense methods today and tomorrow. Are you here to invest in cryptocurrency or to become a security team leader?

What is rapid reduction of position cost? Answer: Build positions in batches and reduce positions when profitable.

Many times, the reason for not being able to hold on is because there is no advantage in the cost of holding. If the cost is low, it can be held firmly.

How to reduce the holding cost of the coins that have risen? I think it is necessary to build positions in batches and not be in a hurry. After making a profit, it is appropriate to reduce the position. Another extreme is the so-called "zero-cost holding", which I think is unnecessary. Your ultimate goal is to hold as many positions as possible, hold them safely, and hold them comfortably.

What is grid trading? Answer: Happy to do long-term trading.

To make big money, you definitely need to take a long-term approach. I have never seen anyone who can make big money by rushing around all day. The challenge of long-term trading is that the fluctuations can be very severe, and you may not be able to hold on to the big profits, or you may end up losing everything. You will be very conflicted. Grid trading is a way to make money in volatile markets.

【陈剑】

translates to

【Chen Jian】

Two investment experiences.

First, try to get first-hand information as much as possible and avoid "second-hand smoke". I may spend 5 hours a day browsing various forums, followed by DC and blogs, to find information. Twitter is less used for this purpose.

Secondly, strengthen the ability to retrieve and process information, and filter out noise to find valuable information. The details are quite complex, and I have written two articles summarizing them comprehensively. You can check them out on my Twitter, so as not to take up too much of your time here.

【BTCdayu】

My investment system is just four words: "accurate observation + heavy position".

How to identify:

At first, I focused on fundamentals, but later on, my strongest skill became storytelling. Storytelling is about determining how many people ultimately recognize it. The higher the attention, the more it can naturally rise. For example, TIA, something even V God fears, has a powerful narrative.

When it comes to researching the industry, it's important to not only rely on publicly available information, but also seek out high-quality sources of information from various perspectives such as institutions, funds, market makers, and project teams.

How to go heavy:

When it comes to 1U, I only invested 1 million RMB in ORDI. Is this considered a heavy position? For my capital chain at the time, the position was not enough. However, I thought it was a suitable position at the time. I usually invested in Dogecoin with 10 Ethereum, but this was slightly better than Dogecoin, so buying 1 million RMB seemed okay. But now I won't think like that anymore. As mentioned by Satoshi Nakamoto, I will reduce my exposure. If it is really good, I will try to heavily invest in it as much as possible, considering my financial, emotional, and mental state.

The premise of heavy positions is that you really understand it. However, even if you understand it very well, there are still pitfalls. You may have missed a fatal piece of information, which could cause you to lose a lot.

【Haotian】

【BTCdayu】

Thirdly, another part is allocated to some mainstream currencies to capture some market beta returns.

【Haotian】

2万 U hires Teacher Zhang as a consultant, and 80,000 U hires Teacher Dayu to manage the trading. (laughs)

To achieve financial freedom with 100,000 U, you must definitely look for opportunities with trends.

I recommend three wealth passwords: Solana, RNDR, Mobile.

RNDR: Spanning multiple fields such as AI and the Solana ecosystem, it is also a partner of Apple VR. Pay attention to the developments of Apple's upcoming VR devices, as the market will react accordingly.

Mobile: It's a bit high-risk, but potentially high-reward. It's about the story of American mobile.

【陈剑】

translates to

【Chen Jian】

in English.

Definitely need to set a goal first. Find the target according to expectations.

【BTCdayu】

If there are only 100,000 U.

1. Look at all kinds of things every day and try to absorb as much as possible.

2、撸毛。

2. Fur combing.

3. Look for opportunities in your familiar field.

1. Meme coin. Keep an eye on it and aim for a sure hit.

3. Buy popular narrative coins. If the funds are larger, I would look at coins like TIA, although the price is high, I see its potential in a bull market.

4. Buy popular chains. For example, SOL, I think it may become a chain that rivals Ethereum.