The Temptation of Bottom Fishing
The US stock and cryptocurrency markets have recently been like under a spell, continuously declining without any sign of stopping. Li Ming looked at the shrinking assets in his account, feeling increasingly anxious.
"It can't go down any further; it's time to bottom fish," he said to himself. When the market showed a hint of rebound, Li Ming immediately took action and invested all his remaining money. However, the rebound was just a flash in the pan, and the prices quickly began to fall again. Li Ming's account suffered significant losses.
In fact, once a market trend is established, it is difficult to change easily. In a downward trend, every rebound may seem like an opportunity but is actually a risk. It's like in a storm; a brief calm does not mean the danger has passed.
Li Ming later understood that blindly bottom fishing is a major investment taboo. In a downward trend, one should remain calm, observe the market, and wait for a true turning point. Instead of being deceived by a momentary rebound and acting impulsively. Investment requires caution and respect for market rules to steady one's boat in the turbulent market.