In the investment field, a decline is not a risk, but rather a process of "detoxifying" the market. Risks often arise from skyrocketing prices and an overheated market, whereas opportunities are hidden within the declines.
The choices made during a downturn affect the mindset for subsequent rises. If one hesitates and does not dare to enter the market, a reversal can easily lead to chasing prices upward, which is likely to result in being trapped, and when the market declines again, there is a panic to cut losses, falling into a vicious cycle of wealth shrinkage.
A wise move is to gradually build a position during declines to average down costs; when the market warms up and rises, take profits gradually to lock in gains, and continue to operate with the market fluctuations.
Whether long-term investing or daily trading, the essence is still "buy low and sell high." Relying on short-term emotions to chase prices up and down may yield profits temporarily, but it is hard to sustain. After all, when emotions recede, the naked swimmers will be exposed.
Therefore, it is imperative to respect the market and control emotions to navigate steadily toward the shores of wealth amidst the investment waves.
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