Insights

Improving efficiency through diversification, a working strategy? Is everything pumped up except what you're holding? This is a common picture, especially for people who like to keep their entire portfolio in a few coins with a high degree of confidence. For example, $GOAT is down 43%. If that's a significant portion of your positions, it would be extremely frustrating to see $XLM and $KSM 2x over the same period while your portfolio is down or flat. During these periods, random alts are pumped at random times. You can't pinpoint the timing. And if you only have 3.4 alts, you can become greedy and impatient. This will eventually break your psychology and lead to irrational behavior. Remember that many new traders lose money or get liquidated during the best days of a bull market. It seems completely unrealistic, but it happens. Just accept some losses, fomo, disappointment. There are two solutions: 1. Focus on positions with high chances of success, but be very patient for their time to come. It may not happen. Take the position. 2. Diversify more. Not to reduce risk, but to catch more random pumps. This will allow you to redistribute profits from those who are pumping to those who are not yet pumped. The recent events in $xlm $ksm $dot $jasmy $vet etc. tell you something important: In this market environment, fundamentals don't matter. Of course, this phase will not last for months, but in the current market realities, I believe this is a viable strategy.