In a bull market, most people lose money, and the problem lies in being reactive rather than proactive. At first, when others say a bull market is here, everyone is skeptical and too lazy to pay attention; when they finally see some movement, they only dabble with a little investment; by the time the market is nearing its peak, they rush in frantically, even borrowing money to invest in stocks. This time, who knows how many people have been cut off during the downturn.
There are three types of people in the market: 5%-10% can see opportunities in advance, 20%-30% can keep up with the rhythm, while the remaining 60%-70% are always a step behind, fitting perfectly into the old rule of one profit, two breaks, and seven losses.
