What should I pay attention to during my first Bitcoin bull market?

1. Bull Market Phenomena and Novice Confusion

Content: Discussing the confusion faced by beginners during a cryptocurrency bull market, the phenomenon of assets soaring and plummeting, and how to cope with market volatility.

2. The Correct Mindset for Making Money in a Bull Market

Content: Emphasizing that the money earned in a bull market is not a report card, but a bullet for the bear market, and reminding investors to learn how to protect their profits.

3. Three Situations for Newcomers Entering the Market

Content: Analyzing three scenarios for newcomers entering the crypto market: bull market, bear market, and monkey market, and pointing out that the bull market is the most difficult.

4. Ten Steps of Fund Management

Content: Detailed introduction to ten steps of fund management, including capital allocation, setting exit strategies, maintaining reserve bullets, etc.

5. The Three Poisons of a Bull Market: Greed, Envy, and Arrogance

Content: Analyzing the three major psychological traps in a bull market: greed, jealousy, and blind confidence, and providing coping strategies.

6. The Importance of Recording and Reflection

Content: Emphasizing the importance of recording trading rules, reasons for each trade, and emotions, to help investors identify their weaknesses.

7. Market Pullbacks and Emotional Control

Content: Reminding investors to stay calm during market corrections and avoid making wrong decisions due to emotional fluctuations.

Original Video Transcript (For Learning Only)

Below is the verbatim transcript of the video:

I think most people now

Are a bit at a loss

Regarding their assets that suddenly soared and then crashed

Especially if you joined the crypto space after mid-2020

This is definitely your first time

Feeling the charm of a cryptocurrency bull market

This feeling is extremely special

Hey, is making money this easy?

It’s normal to have this feeling

So today I want to give you a wake-up shot

To prevent you from being blinded by profits

When the bull market ends

Not only will you lose all your money

But you might also end up owing a lot

Everyone should have the right mindset

Money earned in a bull market is not a report card

But a bullet for the bear market

If you don’t learn to protect your profits first

This wave of market movement

Will just be a free emotional experience for you

And won’t help your life at all

And if you are new to the crypto space

You need to be even more careful

Because basically, a newcomer entering the crypto space

Will only face three situations

1. Bull market

2. Bear market

3. Monkey market

A bull market is like now

Almost all coins are rising

It doesn’t matter how much they rise

As long as they’re not crashing

A bear market

Is when very few are trading

You’ll feel the market is very cold

It’s hard to hold on for a month

And a monkey market

Prices go up and down

No clear direction

In a state of extreme awkwardness

These three situations

For a newcomer just entering

The monkey market is the easiest start

The bear market is an intermediate start

The bull market is the most difficult start

Why?

Because sweet first, then bitter, is truly bitter

Most people enter the crypto space during a bull market

After all, only during a bull market

Does this circle have a better chance to go viral

And the reason to go viral

Is that people are willing to join

Not like during the FTX collapse

When the second-largest exchange went bankrupt

And made international news

When people see such news

They usually just laugh at insiders

And don’t consider investing in crypto

In other words, most people

Enter the market during a bull run

This is also why

Eighty percent of the market participants

Are losing money

Because most people

First taste the sweetness

And then their worldview collapses

Since we know that a bull market

Can cause value to explode

We must be even more cautious

Cautious about what?

Cautious about not turning the bull market into a gambling table

And ourselves into a damn firework

Jumping up and then gone

To prevent this situation

Here are ten steps you can follow

To lose less money

Step 1: Capital Allocation

Divide your available funds into three parts

Must be disposable funds

Mom said she will help you save some, that doesn’t count

Wife said she will help you save some, that doesn’t count either

How to divide

Living water fund

Safety fund

Firepower fund

Living water fund

Used for daily trading

Or when you see opportunities to act

Operate with this part

Safety fund

Only keep your core assets and assets you can sleep well with

For example, your preferred spot holdings

Firepower fund

Is where you want to sprint

Used for high-risk operations

Proportion

More aggressive: 3,4,3

More conservative: 3,6,1

The key is, after dividing, don’t reallocate

Lock the positions once set

And always keep some cash in hand

Step 2: Design Exit Ladder

Whenever your paper gains reach a certain level

Automatically reduce some holdings

First level, second level, third level

How to set the replacement rules

Sell a small amount each time a fixed percentage or threshold is reached

Step 3: Reserve Bullets for the Next Bull Market

The most brutal phase in a bull market is called

“I keep waiting”

In the end, it usually returns

Convert some profits into stable chips

This is not betraying your belief

But respecting the trend

When the season turns

You’ll have the capital to pick up cheaper chips

Step 4: Set Maximum Loss Limit

Opportunities in a bull market are many, everyone knows that

Everyone also wants to go all-in

So you must set a maximum drawdown

Daily loss limit of 2% to 3%

Stop immediately if you hit the bottom line

Today’s loss isn’t money

It’s emotions

Leave emotions for tomorrow to recover

Next, Step 5

Establish Trading Rules

Just three sentences

What kind of orders I make

What strategy I use

Under what circumstances I will cut losses

It’s best to record these in writing

For example,

I only do double bottom patterns

Head and shoulders patterns

My logic is to wait for the structure to be complete before entering

If it doesn’t go as expected, I don’t place an order

Check the list each time I make a decision

Don’t think you know the market inside out

Step 6: Boredom Over Chaos

The most toxic thing in a bull market isn’t decline

But the endless cycle of seasons and stimulation

You think not trading is wasting the trend

Actually, not trading is protecting your record

Practice, pause

Practice, wait for opportunities

Practice, don’t participate

Step 7: Don’t Follow Others’ Pace

See someone doubling in a day

And want to chase their one-year gains in a month

In the end, you’ll only make up their one-day loss in a year

There’s always someone faster in the market

But that doesn’t mean you should cramp up

Who compares their speed to Bolt every time?

You should understand you’re not them

Step 8: Only Trade Waves You Understand

Three rhythms for your reference

Trend orders leave profits to time

Swing orders eat the most profitable middle segment

Quick orders solve impatience

You can only play one role per day

Don’t do swing trading in the morning and quick trades in the afternoon

Or you’ll end up as a leek

True experts

Can switch freely

Only on the basis of solid fundamentals

Step 9: Anti-FOMO Checklist

As soon as your hands start to sweat

Recite immediately

Am I sticking to a trading plan?

Am I blindly following others because they made big money?

Am I underestimating risks and overestimating CV?

Three questions

If all answers are yes

Leave the circle for at least 30 minutes

Whether to go to the bathroom, drink water, or take medicine

Just don’t trade

Wait for your heartbeat to stabilize before returning

Don’t fall into high-frequency trading traps

Step 10: Data Detox

What is Data Detox?

Bull market info is overly sweet

So sweet it spikes blood sugar

Choose three trusted indicators

As core indicators, that’s enough

Like volume structure, capital flow, total open interest

Such data

Don’t look at those FOMO-inducing news

Read the news content carefully

See if media exaggerated parts

To avoid blaming the news media for your mistakes

After explaining the ten-step SOP and the three poisons of a bull market

Greed, envy, arrogance

One by one

Greed

Already reached the target but still want to double again

Convert cash into illusory future

But the future doesn’t come, and the principal is lost

People who make money in the market

Can’t say they have no greed

But they are sober enough

That greed to a certain extent causes big trouble

So they can control their thoughts

Envy

See others earning more

And doubt your own path

Start switching strategies randomly

Today follow A, tomorrow worship B, the day after imitate C

The day after that become D’s follower

In the end, no one looks like themselves

Just like an accident

Everyone’s profit zone is different

I won’t ask you to compare yourself

But don’t compare yourself to those far behind

This kind of self-harm, mental torment

Feels like knives slashing your heart repeatedly

It hurts so much

And finally, Arrogance

You think you understand the world and the market

You think pullbacks are opportunities to pick up money

You think you can escape anytime

The market loves to target confident fools

One big fluctuation

Can drop you from heaven to hell

Where you buy matters

You must have the capacity to bear corresponding risks

And the antidote to a bull market is

First, record

Write down the rules and recite and follow daily

Make it as effortless as brushing teeth

Second, record

Note the reason, position, result, and emotions each time you place an order

Review weekly

You’ll see your real weakness

Isn’t the market

It’s you

Especially emotions

Very important to record

All emotions that make you angry

Come from expectations

If you expect others to fail

When expectations are disappointed, emotions will surge

Others provide emotional value

And you only provide emotions without value

Think carefully about the main cause of your emotional fluctuations

Finally, third

Loneliness

Learn to stay silent while others celebrate

You’re not unhappy

You’re storing happiness

To use when others need comfort

Happy about assets rising sharply

Show off, yes

But don’t act impulsively

Recently

Both Bitcoin and Ethereum

Have experienced slight pullbacks

But note

Ethereum rose over 50% in ten days

Now only a three-day correction, about 10%

No need to be so nervous

Bitcoin is the same

Trend lines are still intact

Don’t rush for answers

Bitcoin isn’t your partner

Don’t invest emotionally in these assets

They won’t care about you

At this stage

Breaking previous highs again is rare

And Bitcoin’s market share continues to decline

Don’t sell just because of a correction

We should sell gradually during upward trends

Your every operation opportunity is self-given

The only thing that can truly execute trades is yourself

Practice attributing all mistakes to yourself

That’s where progress comes from

Finally

I wish that those experiencing a bull market for the first time

Can smoothly get through this cycle

Save funds for the bear market

And regret not buying when the time comes **$RAVE **