For example:
Last night, a friend saw that Bitcoin has been rising quite well in the past few days, so he asked if the bull market has returned? I couldn't help but want to buy it back again.
I poured some cold water on him and he stopped talking.
Otherwise, it would have been the highest point if I had entered last night. If nothing unexpected happened today, it would have plummeted, and it has now plummeted by nearly six points.
The correct approach to investment is not to chase the rise. The probability of success in chasing the rise is very low. Chasing the rise is only possible to make money in a unilateral upward bull market.
In a bear market or a volatile market, things will basically be terrible. This kind of investment behavior that relies on emotions is standard behavior of "leeks" and is the fuel of the market.
Any investment market that has a strong money-making effect, where stories of getting rich quickly constantly stimulate you, and you become indifferent at first, but then keep enduring, and finally can’t help wanting to rush in, is likely to have peaked in the short term. At least there is no money-making effect, the profit is limited, and the principal risk is extremely high.
The so-called "sell high and buy low" is easy to say but difficult to do. It is said that knowing is easy but doing is difficult. Generally speaking, it requires a combination of macro analysis, sentiment analysis and micro analysis. Once a bear market is determined, a reversal should not be made lightly before the general trend is completely reversed.
At present, inflation in the United States is extremely serious, reaching a record high in decades. The United States has no habit of saving. Once inflation continues to intensify, it is highly likely that interest rates will continue to rise violently and shrink the balance sheet. The hollowing out of the U.S. industry is very serious, with the service economy accounting for more than 80%, and the manufacturing industry is pitifully low. In times of crisis and turbulent times, what is the most valuable? Materials. Real industrial products, commodities, food and various materials.
Manufacturing is the foundation of a great country. When a crisis comes, the least valuable thing is the legal tender itself. Throughout history, the legal tender has depreciated the fastest in turbulent times. In 1948, hyperinflation occurred in the areas ruled by the Nationalist government, and the legal tender collapsed. The government had to abandon the legal tender and replace it with gold yuan coupons. The legal tender instantly became waste paper, and 3 million yuan could only be exchanged for one yuan of gold yuan coupons. A large number of middle-class people went bankrupt instantly.
The lesson is not far away.
It is extremely difficult for the United States to regain its manufacturing industry today. It is basically impossible to ask young men and women who are used to a life of luxury to do dirty and tiring work. Either the efficiency is extremely low or the cost is extremely high, and they will soon be eliminated by the market.
Therefore, without relying on China, the United States cannot solve inflation on its own. In addition, the war between Russia and Ukraine has not stopped, and the US and European sanctions against Russia have caused a food crisis and an energy crisis, which will continue to push up inflation.
All countries are having a hard time right now, but we are relatively safe. The unprecedented changes in the world are not just a casual remark. The multipolar world has been established and is irreversible.
The world will become more turbulent, so we still need to be more stable.
Be appropriately conservative, quit when you are ahead, and lock in profits, but don't be too aggressive.
If you are interested in the cryptocurrency world but don’t know where to start, you might as well follow my introduction and find me, and work with me to arrange 100x coins and discuss the mysteries of the cryptocurrency world and future possibilities.
