In the cryptocurrency market, the "80/20 rule" is commonly observed: 80% of the time the market is flat, while profitable opportunities are mainly concentrated in 20% of the time. Since it is impossible to predict the timing of sharp fluctuations, investors need to remain engaged at all times. However, the ideal strategy is to increase positions when the market rises and maintain lighter positions when it falls. Yet many people do the opposite, increasing their positions as the prices rise, driven by greed, which leads to losses when the market reverses.
This approach is similar to gambling: making small bets when winning, but once a large bet is placed, a market downturn may wipe out previous profits. Investing in accordance with human nature may feel pleasant but often makes it difficult to profit.
There is a saying: "When others are fearful, be greedy; when others are greedy, be fearful." At market peaks, when everyone is buying, you should choose to sell; and at market lows, when everyone is panicking, you can seize the opportunity to enter. Although this contrarian approach may feel uncomfortable, it is the only way to profit in the market.
Greed often stems from the desire to recover previous losses through rising prices, which is a typical gambler's mentality. Investing is like eating fish; one should eat the middle part, as the head and tail are not tasty, and learn to take profits at the right time.
