The decline is a process of removing risk; real risks often accumulate quietly during a rise.
A market decline does not represent real risk; it is more like a necessary stage for removing excess risk. Real risks typically accumulate gradually during a market rise, lurking behind the upward movement. Genuine investment opportunities often arise during the decline process. Therefore, decisions made during a decline will directly affect your mindset during a rise. If you hesitate to enter the market during a downturn but are eager to chase after rises, you may very well get trapped at high positions. Once trapped, many people choose to cut losses, thus falling into a vicious cycle.
A rational operational strategy is: build positions in batches and take profits in batches.
Instead of rushing to chase highs during a rise, it is better to build positions in batches during a decline, taking advantage of market lows. During the rise, one should take profits in batches. Whether in investment or trading, the core strategy is always 'buy low, sell high, operate in batches.' Although one might gain some profit in the short term by chasing highs and cutting losses, this strategy lacks long-term sustainability.
Mastering market sentiment is essential for achieving long-term success.
Remember to respect market fluctuations, maintain a calm mindset, and control your emotions to steadily progress in a volatile market and remain invincible.