Timely profit-taking is the key to dealing with retracements, but you need to stay calm after exiting
When dealing with market retracements, timely profit-taking and locking in gains is the most effective strategy. However, this is only one step to success. More importantly, once you exit the market, don't rush to re-enter due to impulse. I have seen too many people who made a lot of money in the bull market, but ended up re-investing all their gains in the market due to a momentary impulse, and suffered a tragic loss.
Psychological traps brought by high-volume transactions
Many people fail to make a comeback, often because they have participated in large transactions and lost interest in small investments. In the past, they were used to millions of dollars in transactions, and when faced with tens of thousands of dollars in investments, it was difficult to arouse their interest, and they always wondered when they could make up for their losses. Driven by this psychology, they are prone to high-risk strategies, such as leveraged operations, which ultimately lead to irreparable losses.
Lessons in the bear market
Although many people may not take this seriously now, these lessons will become extremely profound and realistic when the market enters a bear market.