In the cryptocurrency world, there is a common phenomenon known as the "80/20 rule," where 80% of the time may be dull and uneventful, while profit opportunities primarily concentrate in the remaining 20% of the time. Since we cannot predict when severe volatility will occur, you must ensure that you are always participating. This does not mean that you should remain out of the market before a rise and then go all in during the uptrend; such situations are rare. The ideal strategy is to hold a heavier position during market rises and maintain a lighter position during market declines.
However, many people do the opposite, adopting an inverted pyramid approach to increasing their positions, adding more as the price rises. When the price is at its bottom, their positions are light, but as the price climbs, their greed intensifies, prompting them to invest more. Once the market reverses, they suffer significant losses. This is akin to gambling; you place small bets when you are winning, continuously earning small profits, but once you make a big bet and the market falls, you could wipe out all previous gains. Investing in accordance with human nature may feel gratifying, but it is often challenging to achieve real profits.
There is a saying: "When others are fearful, be greedy; when others are greedy, be fearful." At market peaks, when everyone else is scrambling, you should let them have the chips and pick them up again at market lows. This contrarian investment approach may feel uncomfortable, but you must understand that it is always a minority that profits. Most people follow human nature, and only by going against it can one succeed in the market.
Greed often stems from the hope of recouping previous losses through the rise of a coin, leading to increased reluctance to sell as prices rise. This is a profoundly flawed mindset, a typical gambler's mentality. When eating fish, one should eat the middle part; the head and tail are not tasty, and one needs to learn to let go at the right time.