Congratulations.

Author: Ri Yue Xiao Chu

1. Although the bull market is generally rising, speculation still revolves around specific sectors. Moreover, if a coin experiences a sharp rise, it will drive speculation in its sector.

2. Opportunities abound in a bull market, but being greedy and trying to seize every opportunity will not end well. On the contrary, capturing the main uptrend of a sector is enough to make a substantial profit. If lucky, capturing two main uptrends in sector rotation can lead to unimaginable wealth.

3. This bull market is different from previous ones in that there is more money, more people, and more professional institutions involved. Therefore, the trading strategy has been adjusted to:

   1) Instead of chasing hotspots, it's better to focus on good projects/sectors for higher returns;

   2) Join forces with a group of professionals;

   3) The market value of highly popular projects is fully priced, while less popular sectors may experience high multiples.

4. It's important to distinguish between impressive projects and potential returns. Projects that seem impressive may not necessarily be profitable, as the market is already fully priced. Therefore, I will select:

   1) Projects that the market recognizes but are not universally popular, as they have high potential returns and low risks;

   2) Sectors with low market heat, as mini-lottery sectors;

5. While going all-in on a single sector may seem satisfying, it may also lead to missing out on the entire bull market, which is not advisable due to the higher risk. I recommend using a concentrated approach with a limited number of positions. Focus on a few key sectors and some secondary ones, keeping the overall quantity under control.

6. Sector speculation can occur in three scenarios:

   1) Definite major events, such as the upgrade of Shanghai leading to speculation in LIDO and SSV, or the airdrop of Arbitrum tokens triggering a rise in its ecosystem projects;

   2) Sudden events, such as the sudden popularity of chatgpt sparking a surge in the AI sector, or the release of Sora causing another uptrend. Another example is the boom of the metaverse in the second half of 2021, triggering a frenzy in the GameFi sector;

   3) After a coin experiences a sharp rise and becomes a leader, it ignites the heat in its sector projects.

Most of the time, sector speculation is uncertain, which is why it's necessary to wait for opportunities in a bull market. This is because the timing of speculation cannot be determined. Only the first type of major event is relatively certain. However, its downside is that due to its strong certainty, the potential rise you can participate in may not be very significant. This is because many people will have already positioned themselves in advance. The most typical example is this year's Cancun upgrade, where the rise of arb and op lagged behind other coins.

In previous bull markets, there were two strategies:

First type: Heavy allocation of assets to certain sectors

The key is to wait for opportunities in the bull market. The advantage is that the operation is simple, making it suitable for most people and those with busy daily work. The downside is that it requires patience, which is a test of human nature, especially when you see others getting rich while your own assets remain stagnant.

I recommend having 2-4 specific sectors, but if you want to focus on just one, it will require a strong judgment. Having too many sectors is riskier and not highly recommended.

Second type: Part of the position is held in reserve, and the other part is allocated when there is speculation in the sector

The advantage is the flexibility to enter and exit, but the downside is the need to be sensitive to the market, requiring more experience and constant focus on the market.

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