Lin Chao discusses cryptocurrency: Should SOL be cleared or held?

CN
5 hours ago

In the midst of strategizing, we can win from a thousand miles away. Hello everyone, I am Lin Chao, a global financial market observer, focusing on cryptocurrency market analysis, bringing you the most in-depth trading information analysis and technical teaching.

When the SOL index was still below 140, Lin Chao had repeatedly published articles detailing his trading layout (for details, see Lin Chao's June articles). Friends who have been following Lin Chao for a long time should have seen their assets nearly double by this point in the current market cycle. Currently, SOL's upward movement is an independent trend, just as we previously predicted, the sector rotation has also reached the SOL chain, as evidenced by the recent explosive performance of altcoins, which has continued SOL's upward momentum. It is worth emphasizing that from a narrative perspective, SOL is waiting for the ETF approval in October. Therefore, this wave of inducement before the interest rate cut is still not the final explosion period for SOL, in Lin Chao's view, it is also considered to be rising with the general trend. Of course, as it rises with the general trend, it will naturally also fall with it. I predict that after the interest rate cut news is released, SOL's price will also decline, but the extent of the decline will be less than that of many other coins. Thus, Lin Chao has recently been positioning for short-term fluctuations in SOL, as it is essential to pocket profits when the market comes, rather than watching numbers ride a roller coaster.

Many people have much greater expectations for the "altcoin season" than for mainstream currencies. As a veteran trader in the crypto space for 10 years, Lin Chao is very aware of everyone's desire to get rich overnight. However, Lin Chao is currently skeptical about the cycle of this altcoin season. From the perspective of market liquidity, there is actually not much capital left for all altcoins to explode together; occasionally, a few altcoins may surge, but their magnitude is far less than that of previous altcoin seasons. Looking at the recent hot PUMP trend, a 400% increase in half a month pales in comparison to the tenfold or hundredfold gains of previous altcoin seasons. This round of altcoin cycle is likely just an inducement period before the interest rate cut, ending after the cut is implemented. For those who have not positioned in altcoins before, entering the market now may likely mean buying at a halfway point or even at the peak. Therefore, I believe that rather than betting on the duration of the altcoin season, it is better to flexibly use funds for hedging in mainstream spot trading. I will also set aside some funds to hedge against potential pullback risks after the interest rate cut, using contract forms for hedging. Of course, not everyone's trading methods are the same; some users only trade spot and think that playing contracts is gambling, which varies from person to person. When the market enters a downward cycle, the value differences of different trading plans will naturally become apparent.

Next, Lin Chao wants to share my personal survival strategies in the crypto space for your reference. In my view, so-called investment is about learning to wait 90% of the time! In the bustling market, learn to wait 90% of the time, spend 5% of the time analyzing and thinking, and the remaining 5% on execution. This is by no means an empty slogan, but rather a key factor in achieving investment success.

  1. Summarizing after each operation is an important milestone in everyone's investment growth journey. When a trade concludes, whether in profit or loss, it is necessary to calm down and conduct a complete and detailed summary. Reviewing the size of the position directly relates to the level of risk exposure of the capital. An overly heavy position during market fluctuations is like dancing on the edge of a cliff; a slight misstep can lead to irreversible consequences; while an overly light position may miss good opportunities. Carefully analyzing the specific reasons behind making small profits and large losses or large profits and small losses is essential, whether it stems from a misjudgment of market trends, emotional influences, or misleading news. Only by clarifying these issues can one operate more skillfully next time.

  1. Determining a suitable investment style is about finding the right direction in the ocean of investments. The market is like a vast ecosystem, with a dazzling array of investment projects, coins, and strategies. Investors must earn money within their understanding; this is a hard rule. Lin Chao studies no more than 10 coins in a year and holds no more than 5 positions. Human energy is limited, and focusing limited energy makes it easier to avoid confusion. My logic is that when the overall trend is unclear, I only study the top 10 coins by market capitalization, or even the top 5. Even if the altcoin season arrives, even if I miss it, I won't regret it. Often, looking back at past investment experiences reveals that excess income often comes from just 1 or 2 coins, which are the result of in-depth research and precise grasp.

  1. In the trading arena, human weaknesses are magnified infinitely, and understanding "human nature" and overcoming greed is a must for investors. When the market begins a major upward wave, the continuously rising green lines are like the most tempting candy, attracting investors' attention. However, history has proven countless times that no one can absolutely eat from start to finish. Attempting to capture every bit of profit will likely lead to being bitten back by the market. Being able to catch a fish's body is already a great success. This is what Lin Chao mentioned earlier; we cannot be the first to know, but we must strive to become the second to know and the first to realize. Whenever human nature is tested by profit, and fear occupies the mind, it is time to stop and think calmly. Enter decisively at the beginning of a price rise, and exit rationally when signs of a trend reversal appear, without being blinded by greed, to win in this game of human nature.

  1. Independent thinking and judgment are the stabilizing force for investors in a noisy market environment. The investment market is never short of various voices, expert predictions, friends' news, various hot recommendations, including the articles written by Lin Chao, all of which are full of differing opinions. If one blindly follows, it is like a ship without a rudder, drifting with the tide. Surrounding voices may carry their own purposes and biases; only by adhering to one's own analytical framework and making decisions based on conclusions drawn from in-depth research can one navigate through the ever-changing market with a steady pace.

  1. The "I Ching" states, "When the extreme is reached, the opposite will come," and this ancient wisdom shines brightly in the investment field as well. The market has its off-seasons and peak seasons, just as nature experiences cold winters and hot summers. During the off-season, when coin prices are sluggish and the market is bleak, many investors begin to feel anxious, panicked, and even cut their losses. However, visionary investors understand that this is like the darkness before dawn; the off-season will eventually pass, and a sunny day will come.

Going with the trend, not opposing the general trend, actively positioning during market uptrends, and cautiously defending during downtrends can lead to a life of following the trend, making investment a tool for wealth appreciation rather than a black hole that devours capital. In conclusion, during the 90% waiting time, investors are not idle but are conserving energy, observing the market, and accumulating knowledge. Waiting is not passive endurance but being fully prepared for that 5% operational opportunity. Like a cheetah lurking in the grass, waiting for the moment when the prey is most relaxed to launch a fatal strike. When the opportunity arises, relying on daily accumulation, summarized experiences, control over human nature, independent judgment, and alignment with the general trend, one can decisively act, thus ensuring victory in this long-term investment battle, reaping wealth and growth.

If you are in a state of confusion—unable to understand technology, unsure how to read the market, not knowing when to enter, unable to set stop losses, not understanding take profits, randomly increasing positions, getting stuck at the bottom, unable to hold onto profits, missing market opportunities… these are common problems for retail investors. Lin Chao can help you establish the correct trading mindset. A single profitable trade is worth more than a thousand words; finding the right direction is better than repeatedly facing defeat. Rather than frequent operations, it is better to strike precisely, making each trade more valuable.

The success of investment depends not only on choosing good targets but also on when to buy and sell. Preserving capital and making good asset allocations are essential for steady progress in the ocean of investments. Life is like a long river flowing into the sea; what determines victory or defeat is never the gains and losses of a single pass or moment, but rather careful planning before action and knowing when to stop to gain.

The global market is ever-changing, and the world is a whole; follow Lin Chao to gain a top-tier global financial perspective.

This article is merely a personal opinion and does not constitute any trading advice. The crypto space carries risks; invest cautiously!

Real-time consultation, feel free to follow the public account: Lin Chao on Cryptocurrency.

免责声明:本文章仅代表作者个人观点,不代表本平台的立场和观点。本文章仅供信息分享,不构成对任何人的任何投资建议。用户与作者之间的任何争议,与本平台无关。如网页中刊载的文章或图片涉及侵权,请提供相关的权利证明和身份证明发送邮件到support@aicoin.com,本平台相关工作人员将会进行核查。

Bitget七周年速领777U+返10%+分25,000U
Ad
Share To
APP

X

Telegram

Facebook

Reddit

CopyLink