Investment Wisdom from Trading Expert Amanda

As an experienced investor, Amanda has achieved remarkable success in both the cryptocurrency and traditional financial markets. Her investment philosophy and trading strategies are worth our in-depth study.

Formulating Personal Investment Strategies

Amanda suggests formulating investment strategies from both personal and market perspectives:

personal perspective

1. Assess the total amount of investable assets to ensure no restrictions from loan repayments and liquidity.
2. Clearly define investment objectives and return expectations
3. Understand your own risk preference and tolerance.
4. Consider the investment time horizon
5. Reasonable arrangement of capital liquidity

market perspective

1. Pay attention to market cycles and ensure they align with your personal investment plan.
2. Scientifically control your position size, avoid blind diversification, and pay attention to sources of risk.

How to Outperform Bitcoin

To outperform Bitcoin, the key lies in timing and selecting coins.

Coin Selection Strategy

Amanda's criteria for selecting assets are: "There should be both growth logic and profit-making ability, and it should also be able to tell a story and create events." Specifically, it can be considered from the following aspects:

1. Growth: Choose appropriate metrics based on the type of project, such as TVL, number of holding addresses, etc.
2. Earning Ability: Analyze protocol revenue, profits, and on-chain transaction data
3. Public Opinion: Pay attention to the external influence of the project.

She suggested training coin selection skills by monitoring the performance of small cryptocurrencies relative to Bitcoin over the long term, looking for high-quality assets that outperform when they rise and lose less when they fall.

Bitcoin Timing

Amanda shared her timing experience:

1. Position yourself during market downturns, such as buying Bitcoin around $16,800 in December 2022.
2. Seize short-term event-driven trading opportunities
3. Long-term allocation, periodically selling to take profits

She emphasized that a regular selling strategy often brings good returns, but it is necessary to overcome the mentality of being eager for profit.

Determining Market Tops

Amanda analyzes the market peak from both quantitative and qualitative perspectives:

1. Quantitative Perspective: Focus on signs of slowing growth
2. Qualitative Perspective: The market may rise for certain reasons and may also fall for those same reasons.

She believes that the current market is in a slow bull trend, and the participation of institutional investors is gradually increasing.

Market Drivers: Crust Theory

Amanda proposed the "Crust Theory" to explain the driving forces of the market:

• Core (Geocenter): Market Sentiment
• Middle layer (mantle): project fundamentals, price performance, and short-term events
• Surface (Ground Level): Market Prosperity Level

She emphasized the need to gain deep insights into the root causes and development processes of market changes.

Assessing Market Sentiment

Amanda provided several methods to assess market sentiment:

1. Observe the Fear and Greed Index
2. Pay attention to ETF fund flows
3. Analyze price movements outside of trading hours
4. Monitor open interest, perpetual contract premium, and funding rate

Continuously Discover New Alpha

Amanda suggests:

1. Actively embrace and understand new things
2. Step out of the cryptocurrency circle and broaden your horizons
3. Maintain curiosity about the world and explore the driving forces behind price movements.

Trader Self-Growth

Amanda recommended several books that had a profound impact on her:

• Tao Te Ching
• The Art of War
• Poor Charlie's Almanack
• "Reminiscences of a Stock Operator"
• "Financial Alchemy"

She emphasized that continuous learning and enhancing cognition are key to successful trading.

Conclusion

Amanda pointed out that the ultimate goal of trading should not just be to outperform Bitcoin. Finding a trading strategy that suits oneself, continuously practicing and improving, and gaining a sense of joy from growth is the core motivation that supports traders to move forward.