Thoughts on realizing the investment in Ethereum

In the past two days, I wrote about the experience of investing in the second-layer expansion project of Ethereum. In the comments at the back of the article, some readers mentioned that they bought a large amount of Matic in the early years, but sold it after it increased several times.

I am afraid that this is an experience that many investors have had, and it is inevitable to feel regretful every time they think about it. Because I finally invested in a project with a considerable increase, I also bought chips at a low price, but I sold them after only tasting a little bit of sweetness.

There is an old saying in the investment world: those who can buy are apprentices, and those who can sell are masters. I have a personal feeling for this sentence: in many cases, being able to sell is indeed more important than being able to buy, and requires more skills.

Regarding when to sell coins, I have some experience and lessons myself, and I will use two articles to share my experience in this regard with you.

In the stories of many legendary investors I have read, as well as through my own experience, I have discovered the fact that it is often a small number of projects that bring us huge benefits. It is even possible that in an investment, most of the projects we invested in failed, and only a few projects succeeded, but the income brought by those successful projects not only made up for all the losses but also brought considerable profits.

So in my opinion, a very important factor in investment is not the frequency of success, but the benefit that one success can bring us. If we can control the number of failures and the extent of losses within an acceptable range as much as possible, and maximize the success record to the possible limit, we can have considerable benefits.

So what can be done to achieve this effect? As far as my own experience is concerned, it is to buy at the lowest possible point and sell at the highest possible point. More specifically, bear market buying and bull market selling.

Many investors can actually buy in a bear market, but it is more difficult for many investors to sell in a bull market. So I will focus on sharing with you the experience of selling in the bull market.

When we buy a variety in a bear market, it is very likely that what awaits us next is a long torment. In the process of this torment, we watch the coins we bought stay still or even continue to fall day after day, enduring it every day. With loneliness and loneliness.

Suddenly one day, due to various reasons, it suddenly started to hang up, so the depression that had been pent up in our hearts for a long time began to dissipate, our emotions suddenly became high, and we began to pay close attention to its trend. Then, it continued to soar, 2 times, 3 times, 5 times..., seeing it soaring, we were a little bit at a loss, very happy, and felt that if we didn't sell our hard-earned results, we might be in vain, so we Unable to hold back, he began to sell his chips. But after selling, it still did not change its strong momentum and continued to soar.

At this time, we may have two emotions:

The first is to look at the future trend calmly, without any heartbeat or regret.

The second type is restless, hating myself for selling it so early, so I started various operations: either I hope it will fall every day to get back the chips, or I look for other potentially valuable varieties in the market.

Under the guidance of the second emotion, our follow-up operations often bring bitter fruit. The first emotion is good, but I think it's a pity. Can we think of a way to make some bolder attempts?

So my approach is: first put aside the rise of this species and ignore it, and first look at the trend of the entire market.

If the entire market is still in a bear market, or has entered a bull market, but is still far from the peak of the bull market, then I will continue to hold my chips and not move. If the entire market is clearly approaching the peak of the bull market, then we will see how the trend of this product is. If the trend is too fierce and the bubble is obvious, then we will start to consider selling.

Note: I said "near the peak of the bull market" here, not "at the peak of the bull market". No one can judge the peak of the bull market, but investors can make a general judgment based on their own experience and intuition when they are close to the peak of the bull market.

The most critical point of this approach is to judge the market trend. According to the trend of the market, decide whether to continue to hold funds or start to realize cash for a single product.

Why do you do this? Because as far as my observations and the historical laws of the investment market are concerned, most varieties will only approach their peaks when the bull market is close to its peak; It cannot be compared with the peak of the bull market. So judging from this rule, the timing for us to gain the most is when the bull market is approaching its peak.

If we can get a position where the bull market is near its peak, we can get as much as possible.

This is the fundamental reason why I have always said that none of the varieties I bought in a bear market have been sold so far. Because I think there is still a second half of the bull market, and the second half is the climax of the harvest, and I will see the crazy state of various varieties in the second half. So no matter how high the increase I see now, I decided to ignore it and see what happens in the second half.

Any practice is accompanied by benefits and risks, and it is impossible to apply to any market. My approach is no exception. It also has its own risks, and also has its own scope of application.

But the risk itself is not terrible. What is terrible is that we don't know where the risk is, and what is even more terrible is that we know where the risk is but don't know how to deal with it.

So what are the risks of this approach, and how can we try to deal with it? I will continue to share with you tomorrow.