In the investment field, a downturn is not a risk but rather a process of 'detoxifying' the market. Risks often arise with skyrocketing prices and overheated markets, while opportunities lie in declines.
The choices made during a downturn influence the mindset for subsequent recoveries. If one hesitates and doesn't dare to enter the market, a reversal in trends may lead to chasing prices, which can likely result in being caught in a losing position. When the market drops again, panic selling may occur, resulting in a vicious cycle of wealth shrinkage.
A wise move is to build positions in batches during declines, averaging down costs; when the market warms up and rises, take profits in batches to lock in gains, and continue to operate in line with market fluctuations.
Whether for long-term investments or daily trading, the essence is 'selling high and buying low' and 'buying low and selling high'. Relying on short-term emotions to chase prices might yield temporary profits, but it is hard to sustain, as emotions eventually fade and those who are unprepared will be exposed.
Thus, it is essential to respect the market and manage emotions to navigate the investment waves steadily towards the shores of wealth.
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