Facing the rebound market, how do we operate?
On March 20, the digital currency market ushered in a major correction after the sharp drop a while ago. Bitcoin rose to as high as $6,600, and Ethereum once stood at $140.
In the article a few days ago, I suggested adopting a staged fixed investment method under the current environment, starting from $5,000 for Bitcoin, and making a fixed investment for every $500 drop. Now Bitcoin not only did not continue to fall, but jumped to $6,000. At this time, long-term investors who are preparing to invest in stages will have two emotions:
The first is anxiety. I don’t know if Bitcoin can fall back again. I hope that Bitcoin will fall again, and it will fall back to $5,000 or even lower, so that I can continue to invest in low positions.
The second is regret, regret not buying a little more at the $5,000 point.
Due to the effect of these two mentalities, some investors will ask whether the current market is a reversal or a rebound? If it is a reversal, then the "bottom" of $5,000 may be gone forever; if it is a rebound, there may be opportunities to continue to invest at low positions in the future.
In fact, these two mentalities must be overcome, because we cannot predict whether the future market will continue to rise or fall again.
If the market does not fall below $5,000, we will continue to invest at a fixed time; if the market falls below $5,000, we will restart the scheduled investment in stages.
In this bitcoin rebound, several senior investors in the currency circle, I learned that some accidents may have occurred. When bitcoin fell to around $5,000, they began to sell a lot of short positions. As a result, this round of rebound caused them all Liquidate.
I have talked about contracts and leverage too many times in articles, and this time I want to talk about some so-called "big guys" in the circle who broke their positions in this rally.
In almost every round of bear market and bull market, we can see the big guys who broke their positions. Some of these big guys never got up after falling down.
The "legends" they left behind in the rivers and lakes will only remain in the memory of their peers who have experienced that era, just like meteors passing briefly in the sky, and no one will remember them afterwards.
This kind of bigwigs are typical heroes made by the times. They seized the opportunities that belonged to their era, but unfortunately, many of them may not realize that the fundamental reason why they can seize the opportunities is because of their own Ability is still due to one's own luck.
If it is because of the opportunity seized by luck, but the ability and cognition have not kept up with the pace of development, it may encounter setbacks in the storms in the future and be unable to stand up. Only by continuously improving one's ability and cognition can one become more courageous and stronger in the face of wind and rain.
The investment market is not a sprint, which compares explosive power, but long-distance running, which compares endurance.The final winner in the market must be the one who can survive for a long time and have the last laugh.
In this regard, Buffett is definitely something for each of us to learn from. At the end of last year, when the U.S. stock market was rising steadily and the Dow Jones Index was about to cross the 30,000-point mark, Buffett kept selling stocks.
When the U.S. stock market plummeted recently, airline stocks fell to a horrible level, and when Buffett started to buy large sums, some investment institutions on Wall Street laughed at him for being deeply enslaved by airline stocks.
Every Wall Street group ridicule has almost verified Buffett's wisdom. No one remembers those people who ridiculed Buffett, only everyone has seen Buffett stand still for decades.
Adjust our mentality and control our emotions. We must survive this financial turmoil and become investors who stand upright and have the last laugh.
