Summarizing the basic methods I currently believe in for investing in gorilla assets (high monopoly, high growth).
1. Exploration phase: If you think a certain asset has the potential to be a gorilla asset, you can start with a small-scale position. The purpose of this is to shift your focus, which can enhance your motivation to research this asset and make you more open to positive information.
2. Position building phase: Once you confirm that this asset can be recognized as a gorilla asset, add it to your gorilla asset portfolio. The goal of building a position is to align the market value ratio with the existing gorilla assets.
3. Holding phase: When there are no significant changes in the fundamentals, primarily adopt a buy & hold strategy and just relax. This simplest strategy can already contribute to most of the profit sources.
4. Strategy optimization: If you want to further optimize the buy & hold strategy, I personally think there are two directions:
1. Rebalance with cash: When market sentiment is high and liquidity is abundant, sell no more than 30% of your position (currently, what feels comfortable for me is to reduce it in stages, based on a time-defined selling method), and wait until market sentiment declines and someone is forced to liquidate before adding back.
2. Event-driven rebalancing and leveraging: When a certain gorilla asset experiences a strengthened monopoly or a seismic structural change (similar to the BTC ETF approval or ETH DeFi summer), consider responding in two ways:
1. Appropriately shift some positions from other gorilla assets (for example, selling BTC at the beginning of the DeFi summer to buy ETH).
2. Allocate a small amount of mid-term out-of-the-money call options (3-6 months, with a strike price 20% above the current price).
In summary, long-term holding is the most critical. Any method that conflicts with this goal needs to be approached with caution, especially to avoid scenarios that could lead to forced selling.
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