(Ordinary people may need to experience at least three bull and bear cycles to become wealthy)

The best teacher for retail investors is the market, but how many people can truly endure the severe trials of the market, despair, helplessness, confusion, and ultimately exit the market. They cannot wait for the market dividends.

Exiting the market when liquidity is exhausted and then jumping back in when liquidity is abundant. The result is continuous losses.

First Cycle: If an ordinary person lacks core information, has no resources, no background, and no guidance, then the media becomes your main source of information.

Newcomers to the market have no idea what fear is or what cruelty is; when they taste a bit of success, they plant the seeds of cause and effect. They witness survivor bias, followed by increased funds and leverage. You make money faster, and when you are extremely excited, it is highly likely that it is the time when the bulls are harvesting at the end of the bull market.

Then you will find that unrealized gains evaporate instantly into losses or even liquidation.

Second Cycle: Generally, in the first cycle, most people have basically depleted their principal and cannot survive the bear market, which means exiting the market. At this point, you are likely burdened with repayments from borrowing done during the bull market, and with a few thousand in salary each month alongside exhausting labor, you will question the value of your job, but the monthly loan interest becomes your biggest enemy, leaving you with no mental space to think.

However, the biggest blow to you is not the debt, but the sudden realization that you have no “ability to make money.” The empowerment given by the bull market is utterly useless in the bear market. You watch coins that have dropped by 90% still drop by 50% and think that all of this is a Ponzi scheme, slowly distancing yourself from the circle. Returning to real life.

At this time, there is basically no one speaking in the group for about a week or half a month. Yet, the market quietly begins to start up, until one day it breaks new highs, and you see that the coins you held for two years have returned to break even. You let out a long sigh, finally seeing the light at the end of the tunnel, selling everything to recover costs. Because you no longer believe that a bull market exists; without new people entering, there is no new capital to drive the market up, and bulls do not come easily.