The accumulation of wealth is a long-term work that requires patience, skill and rational thinking. In fact, my personal experience is a vivid illustration. I have had many investment failures, the three most important of which are: increasing leverage, buying assets I don’t understand, and buying growth stocks at high prices. And there seems to be only one way for me to really make a profit: buying high-quality assets that are undervalued by the market. However, simply holding a long-term position cannot bring about ideal returns. The key is to buy high-quality assets at appropriate prices and hold them for a long time without leverage. Only in this way can it be possible to obtain orders of magnitude large returns.
Leveraging has always been an attractive tool for investors because it allows us to make larger investments with relatively small capital. However, the risks of increasing leverage are often overlooked. If the market moves contrary to expectations, then the losses from adding leverage will be far greater than expected. This is my experience. I used leverage trading many times because of my overconfidence in the market, which resulted in me losing a lot of money.
Buying assets I didn’t understand was one of my common mistakes in the past. For example, I once invested in some industries that I didn't understand at all. This was often based on some impetuous emotions, such as the pursuit of the market, or overly optimistic expectations for a certain asset. As a result, I found that my understanding and judgment of these assets were seriously biased, which cost me expensive tuition.
Let’s talk about buying growth stocks at high prices. The appeal of growth stocks is that they have extremely high growth potential. However, buying at high prices often means increased risk. Because the valuation of growth stocks is usually based on expectations for the future, once these expectations are not realized, prices will adjust significantly. This is also a lesson I have suffered.
However, I have found that buying high-quality assets that are undervalued by the market is the main way for me to make profits. These assets often have good fundamentals but are ignored by the market for various reasons. I research deeply, buy at lower prices, and then wait patiently for the market to recognize the value of these assets again. During this process, I always insisted not to use leverage, because I know that long-term stability is the key to making money.
However, friends, I want to remind you that simply holding a position for a long time does not guarantee a return. The key is the price at which you buy and the asset you choose. Only by buying high-quality assets and buying them at the right price can you get orders of magnitude larger returns.
So, what will the market look like in the future? My prediction is that with the continuous advancement of technology, blockchain and Web3 will become increasingly important investment areas. Assets in these areas may have huge growth potential. However, this does not mean that we can invest at will. On the contrary, we need to understand these assets more deeply and treat market changes rationally. Only in this way can we get greater returns in the future market.
(Purely personal opinion, if you want to argue with me then you are right)
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