The 'Turning Point' Thinking of Investment
When the trend of something changes, the value of investment is often the greatest. It can be a peak or a bottom.
When you encounter a turning point, you need to find suitable investment targets. Not every turning point will yield suitable investment targets.
Once you find it, you must deeply understand how elastic it is and how much risk there is. Some people prefer to wait until the turning point is confirmed before buying, some want to build positions in batches, and some want to build positions in advance.
Each of these methods has its pros and cons, and you should consider them in conjunction with the type of asset you are buying. If you are very confident, choosing a low-risk investment type to build positions early on the left side of the bottom is also good, because once you bet correctly, the profit margin is the highest, and it is precisely because it has not yet entered the turning point that the margin of safety is also the highest.
