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 are mainly concentrated in 20% of the time. Since we cannot predict when sharp fluctuations will occur, you must ensure that you are always involved. This does not mean keeping a short position before the market rises and then going all in during the uptrend; such situations are rare. The ideal strategy is to hold a heavier position during market uptrends and maintain a lighter position during market downturns.
However, many people do the opposite; they adopt an inverted pyramid strategy, increasing their positions as the price rises. When the price is at its bottom, their positions are lighter, but as the price increases, their greed intensifies, and they begin to invest more. Once the market reverses, they face significant losses.
This is similar to gambling; you place small bets when you are in profit, continually earning small amounts, but once you place a large bet and the market falls, you may wipe out all previous gains. Investing in accordance with human nature may feel gratifying, but it often makes it difficult to achieve real profits.
There is a saying: 'When others are fearful, I am greedy; when others are greedy, I am fearful.' At market highs, when everyone else is scrambling, you should leave the chips to them and pick them up at market lows.
This contrarian investment approach may feel uncomfortable, but you must understand that only a minority consistently profits. Most people follow human nature, while only by going against it can one achieve success in the market.
Greed often stems from the hope of recovering previous losses through the rise of a particular coin, leading to a reluctance to sell as the price increases. This is an extremely flawed mindset, a typical gambler's mentality. To eat fish, one must eat the middle part; the head and tail are not tasty, so one must learn to let go at the right time.