What goes up sharply will continue to go up sharply, and what goes down sharply will continue to go down sharply. So how do we capture opportunities in the market?
When everything in the market is rising, we should choose the one that is rising the most. Because from a probability perspective, this strong rising variety is more likely to continue to rise. This is not blindly following the trend, but a signal given by the market, telling us which varieties are favored by funds.
Similarly, when everything in the market is falling, we should choose the one that has fallen the least. Because such varieties have shown relative stability in the market decline, and are more likely to be the first to get out of the trough when the market rebounds. This does not mean that we have to buy at the bottom, but to find those relatively safe havens in the market decline. Of course, when we choose varieties, we also need to combine our risk tolerance and investment goals. If you are a risk-averse person, then choosing varieties with stable growth or smaller declines may be more suitable for you. If you pursue high returns, then choosing varieties with strong growth may bring higher returns.
The rise and fall rules in the trading market are not random, but have their own inherent logic and rules. We need to gradually master these rules through observation and learning in order to capture more opportunities in the market. #BTC