In a bull market, emotions often influence investors' decisions, especially when prices rise. Many people feel that they are the chosen ones because they have earned the dividends of the rise, but in fact, this is often the result of the driving force of the bull market rather than personal strength.
Bull markets can indeed cause the prices of many projects to rise sharply, but they are also accompanied by the risk of taking over at high prices. Especially for some currencies that are first opened on centralized exchanges (CEX), many investors will enter the market at high points because of following the trend, which may lead to large losses when the market adjusts.
Looking back at the market in 2021, many CEX-opened currencies have experienced significant price fluctuations and adjustments after the crazy bull market. This phenomenon reminds us that even in a bull market, rational valuation and selling points are still crucial. FOMO (fear of loss) can make people lose their rational judgment of the market, resulting in more losses.
Therefore, as an investor, it is important to stay calm and rational. In a bull market, it is still necessary to adhere to a strict investment strategy, including research-based investment decisions, reasonable valuation analysis, and set profit targets and stop-loss points. Only through rational operation can we better grasp market opportunities, avoid risks and achieve stable investment returns.
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