December 20, 2024
The market still fell. In the past two weeks, when I repeatedly warned of risks in my articles, I would see comments criticizing me for missing out on the huge bull market. Looking back, my perception of risk was relatively accurate. I have gradually reduced my positions, and currently control it to more than 30%. I have also publicly said that the reason why I did not clear my positions is because I cannot be sure that the market has reached its peak. I have to say that the market may enter a period of volatile decline in the future. Bottom-picking must be done in batches, and not in a hurry.
Today I want to talk about another thing, which may be more important to you in the future. Why is it easy to buy at the bottom halfway up the mountain? This is because the dog dealer has set up a price trap. Let's take Dogecoin as an example: after the main force has collected chips for a long time, assuming that the average price of the main force is 0.1 US dollars, it does not take too much money to increase from 0.1 US dollars to 0.4, and it does not take too much money to maintain it at 0.4, because the chips are concentrated in their own hands. From 0.1 to 0.4, the main force's income is enough, but it is actually unrealistic to ship all the goods, so what will the main force do next?
If the market continues to rise, and there are many people who want to buy DOGE, the main force will sell to them, so we can see that DOGE is basically stagnant at 0.4+, and I also said at the time that this is a signal to sell. More importantly, if it falls, the main force will buy it back, reducing costs while keeping the price high, making people feel that DOGE cannot fall, and seeing that the price of DOGE is around 0.4 for a long time, this price anchor will gradually take root in the minds of investors, making people "mistakenly believe" that the value of DOGE should be 0.4 US dollars. With this psychological anchor, the next step is the main force's shipment time. When the price falls to 0.35, retail investors will feel that they can buy the bottom when it falls. When it falls to 0.3, they will continue to buy the bottom. When it falls to 0.2, it has been cut in half relative to the high point, so all in! Little do they know that for the main force, the price of 0.2 is still a doubled profit, and they will continue to sell without mercy.
Of course, this is just a simple assumption. In the actual process, there will be rebounds, rapid rises and slow falls, etc. to create a false impression for investors. For some cottages, it is even worse, because the chips of the project party are almost 0 cost. I just want to tell you that no matter whether you have reduced your positions in the past two weeks, no matter whether your reduced positions are sufficient, don’t be anxious when buying at the bottom, and don’t stick to one cottage. Unlimited bottom buying is only effective for big cakes. The proportion of a single position in other cottages must not exceed 10%.
I hope this is useful to you. Thanks for liking and forwarding.
