How to operate in bull and bear markets? These 3 tips will benefit you for a lifetime
1. When the market is rising, focus on momentum; when the market is falling, focus on quality
In an upward market, the primary consideration is the market trend and the potential of the currency. When there is no problem with the fundamentals, focus on momentum rather than price. Do not be afraid of how high the price is, but consider whether the potential is there. In a downward market, consider the intrinsic value of the currency, that is, its internal quality. Such coins are usually resistant to declines, with small declines and quick recoveries.
2. Buy high in weak market and sell low in strong market
There are strong and weak market environments. In a strong market, theoretically, wild lilies have their spring.
After a sharp correction, there will inevitably be a strong correction and a new high, so that the profit will be increased; buy on the rise in a weak market. When the currency is in a weak market, we should focus on the currency whose fundamentals are in an upward trend. In this way, the loss will be far greater than the profit.
3. Low price is gold, high price is paper
The market price reflects the market sentiment and the current state of funds. Too low a price reflects that the market is in a downturn and a new cycle is coming. This downturn is only temporary, and gold will shine sooner or later. High prices are paper. After a round of market conditions is hyped up, only a small part of them will return to their historical highs. More than 98% will find it difficult to return to their past peaks. After the music stops, everything is just floating clouds and paper.