The continuous decline and step-by-step losses are a real test of investors' psychological bottom line.
Pessimism and overall negative investor sentiment can occur during bear markets, which often leads to overheard behavior, hasty decisions, and fear selling. These can pose risks to the overall long-term performance of a portfolio.
The two main mistakes investors make when they feel anxious are "one is overinvesting, and two is investing without conviction."
As a half-old man, I can share some experience
No one likes to lose money, but young people should be excited about bear markets;
You need to find the sweet spot where you feel confident enough to invest, while managing the resources you use to invest so that you can be 100% comfortable with patience for a long time. Finally, bear markets are where real magic happens — for example, buying Ethereum at $90 in December 2019.
When you are young, time and human capital are your greatest assets. You have time to let compound interest be the wind at your back. Time to wait out a long bear market. Your future earning power is equivalent to future savings, invested regularly whether the market is high or low.
The advice to young people during a bear market is fairly simple - keep saving, keep investing, and don't get scared by the market. Patience and a long enough time horizon can smooth out many bad market situations.
Three changes in perspective are important for surviving a bear market, and are part of the secret to making the big money.
First, investors should set aside enough cash in their portfolio to cover 2-3 years of expenses. In other words, you should never invest any money that you know you might need to use within the next five years.
Bear markets are unpredictable, but we've found that they typically occur about one year out of every five years. By setting aside cash for those five years, you give yourself a chance to build a reserve that will allow you to survive an unexpected bear market if it occurs.
Secondly, during the recovery period after the bear market, cash reserves must be managed carefully. Five years of cash have been set aside so that you don’t have to sell your coins when they are at a low point. As the market falls, you can live on your reserves until the coins you bought recover.
Third, you have to realize that most bear markets recover faster than anyone expected. Historically, the average bear market recovery time from peak to peak is 40 months.
If you are still underwater, if you are bullish, it will fall, if you are bearish, it will rise, follow me and pin it to the top, I will take you ashore and share free profit codes every day
