This article, titled “How to Avoid Risks and Earn Substantial Profits in a Bull Market”, will focus on three key strategies: position management, investment allocation, and risk mitigation. We will break down the risk control system to help you maximize returns during a bull market.

1. Position Management: The Most Overlooked Strategy by 99% of Investors

It’s crucial to assess the current market phase and adjust goals accordingly. The first principle is simple: “Having cash gives peace of mind.”

1. Never go all-in: Regardless of the market phase, always keep a portion of your capital in cash for flexibility.

2. Uptrend cycle: Maintain 80% of your position — 50% for long-term investments, 30% for short-term swings, and 20% in cash reserves.

3. Consolidation phase: Maintain 50% in position, leaving the other 50% in cash to adapt to market fluctuations.

4. Downtrend cycle: Reduce to 10% position or go fully to cash, keeping a small amount invested to stay connected to the market.

Most investors fail to manage positions according to different market phases, which leads to losses, even in a bull market. Many investors tend to go all-in, sell in panic, or fail to hold onto gains. The problem is a lack of disciplined position management and an inability to ignore market noise.

Benefits of effective position management:
Keeping cash on hand gives you the flexibility to manage unexpected situations and act in extreme downturns. It also helps maintain a steady mindset, preventing emotional reactions that can lead to poor decisions.

2. Investment Allocation: It’s Not About the Amount, But What You Invest In and How You Allocate It

First, don’t get caught up in the debate between value investing and speculation. The real key lies beneath the surface of investments. As long as it’s legal and ethical, any profit made in the market is a good investment.

Ranking Timing, Price, and Value:
The priority should be: timing > price > value. This is because the core of investing is buying low and selling high.

Investment targets can be divided into long-term and short-term categories:

· Long-term: Invest in sectors you believe in for the long haul, such as AI.

· Short-term: Invest based on market cycles, such as GameFi this month, and Layer 1/Layer 2 or public chains the next.

I recommend combining long-term and short-term investments, as well as mainstream and altcoins. 70% of your portfolio should focus on high-quality assets like BTC, ETH, BNB, SOL, XRP, ADA — those that have withstood both bull and bear markets. The remaining 30% should be allocated to altcoins and higher-risk assets with higher potential returns.

In summary, using a dynamic strategy based on market conditions allows you to achieve substantial returns while effectively managing risks in a bull market.

3. How to Avoid Risks and Ensure Steady Profits in a Bull Market

1. Safety of principal and longevity are key
Warren Buffet’s two most important investment principles: first, protect your principal; second, always remember the first principle. Opportunities will always exist, but the key for ordinary investors is ensuring you remain in the game for the long haul.

2. Avoid FOMO (Fear of Missing Out)
FOMO is the fear of missing an opportunity, which often leads to irrational decisions. Emotional control is essential in trading — the most important part of a successful strategy. Keeping your emotions in check is vital to avoid making impulsive decisions.

2. Avoid going all-in
Don’t go all-in by investing everything at once. Going all-in means investing all your time and energy into studying the market, not putting all your capital into one place. (The idea that “going all-in is wisdom” is misleading for beginners or those who haven’t yet experienced both bull and bear markets).

3. Avoid buying at the top and stay rational
When an asset rises significantly, it catches the attention of the entire market. After a 2–3x price increase, many investors rush in, only to find themselves stuck at the top when the price starts to decline. This often leads to heavy losses, as they hope to break even, with the painful reality of continuously losing value.

In conclusion, avoid putting all your capital into trading. Implement a gradual exit strategy, prepare for a 50–70% correction, and view market fluctuations as opportunities, not threats. Volatility is a key source of profit in the crypto market, and learning to navigate it successfully is essential. Maintaining emotional stability and avoiding panic decisions is crucial.