In the cryptocurrency world, the well-known phenomenon of the "80/20 rule" indicates that 80% of the time the market may perform flat, while the real profit opportunities are concentrated in 20% of the time. Due to the unpredictable nature of the market's volatility, investors must always maintain a certain level of market participation. This does not mean waiting to fully invest when the market rises, but rather holding a heavier position when the market is rising and maintaining a lighter position when it is falling, acting in accordance with the trend.
However, many people adopt the opposite strategy. They tend to gradually increase their positions when prices rise, and this inverted pyramid style of operation makes their positions heavier at the peaks. When the market reverses, they often suffer huge losses due to their heavy positions. This behavior is very similar to gambling: betting small when in profit to accumulate a little gain; while in heavy bets, a market downturn can wipe out all the accumulation.
There is a classic saying in market investing: "Be greedy when others are fearful, and be fearful when others are greedy." At market peaks, when most people are rushing to buy, one should decisively sell and release their chips; while at market lows, one should calmly pick up the chips again. This contrarian investment approach, although contrary to human nature and uncomfortable, aligns with market laws. After all, it is often the few investors who can act against human nature that profit.
Greed often stems from the hope of compensating for past losses through the continuous rise of an asset, which leads to an unwillingness to sell when prices keep rising. This is a typical gambler's mentality. The real wisdom lies in understanding: one only needs to eat the middle part of the fish; the fish head and tail are not worth chasing excessively. Learning to decisively let go at the right moment can lead to stable profits.