Strategic Thinking in the Altcoin Market—Set the Strategy First, Then Discuss Buying and Selling — Use Strategy to Define Trading Boundaries and Reject Blind Following (1)

The market today is no longer what it used to be. Hard work in tactics cannot hide strategic flaws. Focus on core opportunities and avoid wasting resources on non-strategic points. Use the Dao to govern techniques, so you can grasp the main contradictions.

As a trader who has been deeply involved in virtual currencies for 7 years and experienced multiple market cycles, I understand the harsh truth of altcoin investing — 90% of people lose money by “blindly following trends without strategy,” while only 10% profit through clear underlying logic. This hits the core pain point of altcoin investing: discussing buying and selling without a strategy is empty talk, no matter how precise the candlestick analysis.

I will continue to share some of my personal insights and understanding through articles for free. Here, I won’t discuss technology, only strategy. Gradually refining to enlightenment, writing as thoughts come, until no more words can be expressed. If it helps, I am honored.

In the altcoin market, first clarify “what to do, what not to do, and how to do it” to filter out invalid signals and focus on effective opportunities.

• Strategic positioning—choose one (must be clear, not vague):
• Major cycle bull (hold 3-6 months): only select altcoins with “strong sector logic + institutional holdings + ongoing ecosystem implementation” (e.g., ARB, OP in the 2023 Layer2 sector), requiring clear user growth, revenue data, or technological breakthroughs. Reject pure concept coins.
• Small wave (hold 1-4 weeks): anchored on “Bitcoin stabilization + sector rotation,” only trade leading stocks in the main trend with short-term catalysts (such as project upgrades, listing on major exchanges, favorable policies), with pre-set take profit (20%-50%) and stop loss (10%-15%).
• Short-term arbitrage (hold 1-3 days): focus on “news-driven + capital movement,” such as sudden positive news (e.g., a public chain announces major cooperation), large contract openings, requiring quick entry and exit, avoiding prolonged battles. Exit if daily gains exceed 15% without sustained volume.
• Practical taboos:
• Avoid “strategic drift”: doing short-term trading but holding long-term due to losses; doing long-term but exiting early due to short-term volatility.
• Avoid “trading without strategy”: buying just because of group calls or candlestick volume spikes, without understanding which sector the project belongs to or its core logic. Action steps: before each trade, write in your memo “strategy type + holding period + entry reason + take profit and stop loss.” Opportunities that do not meet the strategy should be directly passed.