Normally, people are short-sighted. They only focus on immediate, certain, and self-interested factors, which can easily lead to a herd mentality.
The herd effect caused by short-sightedness can sometimes bring huge benefits to people, such as ORDI from $3 to $70, TRB from $8 to $140, and FTT from $0.7 to $5. If you are short-sighted at the right time, you may get certain benefits.
But does short-sightedness necessarily lead to profit? Not necessarily. Because you may ignore the full picture of the event and the real future expectations due to short-sightedness, resulting in unfavorable situations such as missing out on opportunities and being stuck at high positions.
Value investing is a key area of finance and investment, and refers to investing in targets whose prices are lower than their values. The value can be estimated through some financial information and fundamental information, and it is generally believed that prices tend to return to value.
But the problem is that value investing does not allow us to gain great returns in the short term, and may even result in mediocre performance in the long term. Due to unfavorable market factors and investor sentiment, prices may not necessarily return to value. This may make the expected returns unrealized or even result in losses.
The cryptocurrency market itself is also quite special. The extremely low financing, minting costs and difficulty in obtaining financial information make it very difficult to value cryptocurrencies, which is one of the reasons why cryptocurrencies have no bottom. For this reason, in cryptocurrency investment, value investing is also difficult to implement effectively due to the location of the bottom price and the difficulty of valuation.
Even if we implement value investing, it is difficult for us to stick to it in today's short-sighted market. Prices are falling instead of rising, and they keep hitting new lows. Should we exit, keep our positions, or add to our positions? Are there any short-sighted people who will hold on and push prices up? Other targets are rising continuously, and others are making money by buying them randomly. Do you change your positions or stick with it?
In fact, we can’t tell which is better, short-sightedness or value investing. The ever-changing market is disturbing our hearts. In the end, we found that investing is actually a difficult thing. There are too many obstacles on our way to making profits...
