Investing—means learning to wait 90% of the time!
In the bustling market, whether in the crypto space or the U.S. stock market,
learn to wait 90% of the time,
5% of the time in analysis and thinking,
and the remaining 5% operating.
This is by no means an empty slogan, but contains the key factors for investment success.
01. The summary after each operation is a crucial cornerstone for the growth of investors. When a trade comes to an end, regardless of profit or loss, one needs to calm down and conduct a complete and detailed summary.
Reviewing the number of positions directly relates to the degree of risk exposure. An overly heavy position during market fluctuations is like dancing on the edge of a cliff; a slight misstep can lead to disaster; whereas a too-light position may cause one to miss good opportunities.
Knowing when to exit is a key point that tests an investor's vision and decisiveness. Setting profit-taking and stop-loss points is like traffic lights on the investment road; precise profit-taking allows for securing gains, while timely stop-loss can prevent unlimited losses.
Carefully analyzing the specific reasons behind small profits and large losses or large profits and small losses stems from misjudging market trends, being influenced by emotions, or being misled by news. Only by clarifying these issues can one perform better in the next operation.
02. Determine the investment style that suits you, and find the right direction in the ocean of investment. The market is like a vast ecosystem, with a dazzling array of investment projects, currencies, and strategies. Investors must earn money within their own understanding; this is a rule of thumb.
In one year, limit the number of currencies studied to no more than 10, and do not hold more than 5 positions. Human energy is limited, and focusing that limited energy helps to avoid confusion.
Often, when reflecting on past investment experiences, one finds that excessive income often comes from only 1-2 currencies, which are the result of in-depth research and precise understanding.
03. In trading, human weaknesses are infinitely magnified, and understanding 'human nature' and overcoming greed is a must for investors. When the market starts a major upward trend, the continuously rising green line looks like the most tempting candy, attracting investors' attention.
However, history has repeatedly proven that no one can eat from start to finish absolutely. Attempting to grasp every bit of profit will likely lead to being bitten back by the market.
Being able to catch a portion of the fish is already a great success. One must boldly intervene when the currency price rises initially and rationally exit when signs of a market reversal appear, not letting greed blind one's eyes, in order to win in this game of human nature.
04. Independent thinking and judgment are the anchors for investors in a noisy market environment. The investment market is never short of various voices, from expert predictions, friends' news, to trending recommendations on Twitter.
If one blindly follows others, it will be like a ship without a rudder, drifting with the current. The surrounding voices may carry their own purposes and biases; only by adhering to one’s own analytical framework and making decisions based on conclusions drawn from in-depth research can one navigate the ever-changing market with one's own steady pace.
05. (I Ching) states 'From the extreme of adversity comes prosperity.' This ancient wisdom shines brightly in the investment field as well. The market has both off-seasons and peak seasons, just like nature has harsh winters and scorching summers.
In the off-season, when currency prices are sluggish and the market is bleak, many investors begin to feel anxious, panicked, and even cut their losses. However, far-sighted investors understand that this is like the darkness before dawn; the off-season will eventually pass, and a bright sunny day will come.
Go with the trend, do not go against the general direction. Actively position oneself when the market is rising, and cautiously defend when it is declining, to have a life that flows with the trend, making investment a tool for wealth appreciation rather than a black hole that devours capital.
Written at the end
During the 90% waiting time, investors are not idle but are conserving energy, observing the market, and accumulating knowledge. Waiting is not passive endurance but is preparing thoroughly for that 5% of operational opportunity. Like a cheetah lying in wait in the grass, ready to strike at the moment the prey is most relaxed.
When the opportunity arises, relying on the accumulated experience, understanding of human nature, independent judgment, and alignment with the general trend, decisively act, only then can one emerge victorious in this long battle of investment, reaping wealth and growth.
Let's encourage each other!