During the period of bear-bull market, many people often make a small profit, but when the bull market comes, they often lose money or even lose everything. Why is this?
During the period of bear-bull market, the market fluctuates like waves. It is neither a pure bear market nor a complete bull market. It is based on the oversold rebound of the bear market and also inherits the low of the previous bull market. At this stage, the bottom and top of the market are relatively clear, the fluctuation is small, and it is basically within the controllable range. Therefore, as long as investors can enter the market for short-term transactions when approaching the local bottom, they can basically gain something.
However, in the bull market, the volatility of the market suddenly increased. Although there are 18-22 days of rise per month on average, there will always be a sharp drop one day. Most investors are often confused by this rise and fall. They taste the sweetness of profit in the short term, and then quickly enter and exit the market and keep chasing high. Their purchase costs are getting higher and higher, and every time the market falls sharply, they will sell out because of panic. In this process, their chips may become fewer and fewer. When the bull market enters the second half, the adjustment level rises to the weekly level. A sharp drop like that on May 19 and a two-month sideways decline period are likely to make most investors unable to bear it and eventually exit.
I have always believed that a person's character determines his fate and wealth. Those who can make a lot of money have one thing in common: they are calm and not arrogant. And those with unstable mentality will find it difficult to gain a foothold in this field for a long time.
Therefore, we must first recognize the situation and ourselves. The purpose of our coming to this market is to change our lives. Please make a complete plan for yourself: when to buy? When to sell? What is the goal of buying? What is the strategy? How to do a good job of risk control?
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