The common voice in the market now is: After a rapid rise, there will definitely be a correction.
So many people are shorting now. Previously, after breaking 2000, a batch of short sellers perished. Now the market is fluctuating around 2500, and the short sellers are confident again.
Today I want to share a saying with everyone: In a bear market, look for resistance; in a bull market, look for support.
This saying can only be heard because outside, you will find that anyone analyzing for you will constantly talk about resistance and support.
Sell at resistance and buy at support; this is what most analysts say.
However, you will find that being sold at resistance and bought at support ultimately leaves you battered.
In a bear market, if you look for support, the support is meant to be broken. If you buy on support, you are just taking the fall. Even if there’s a short-term rebound, it will still break down.
In a bull market, if you look for resistance and see prices near resistance, you sell or short. Even if there’s a short-term pullback, it will eventually break through the resistance.
So, the key is that you need to judge the trend. Only after you judge the trend can you make the right strategy.
Take the current Ethereum as an example. A few days ago, it broke the long-term downtrend line, and the highs and lows started to rise, clearly indicating a trend reversal.
However, if you still have a bearish mindset and focus on resistance, seeing resistance and thinking it won't go up, believing it's time to short, that’s going against the trend. In the short term, you might think you are right, but when you get trapped at some point, you will definitely pay a painful price.
Investing is like running a business. When investing, ask yourself: Are you serious? Do you have a serious attitude?
More and more people are participating in this industry, from wage earners to individual entrepreneurs, and up to company executives and chairmen of listed companies.
However, if you enter this industry and your mindset hasn't changed, you'll end up as fodder and will lose money.
What mindset needs to change? The change is that you should not view the financial industry as speculation but as running a business.
Many people enter this industry and inexplicably feel it's easy. They think they can just buy and make money, using their life savings to buy coins.
You have invested your life savings and assets; why aren't you taking this industry seriously?
I used to run a supermarket. Why was I successful? Because I knew how to choose a location, how to operate, how to choose products, and how to price them. That's why my supermarkets did well, and I opened several stores with good business.
Many bosses succeed because they master the right methods in traditional industries, meeting all the conditions for success.
But! When it comes to the crypto world, it's different; they feel there's no need to learn and blindly buy coins, not caring if they understand the market.
Doesn't the financial industry require methods? If you can't understand the market, you won't know if it goes up or down, if it's a bull or bear market, if the price will continue to rise after an increase, what coins to buy, which coins are valuable, how to allocate your positions, how to buy in batches, when to sell, and how to maximize profits while minimizing risks.
How can these investment methods succeed when they know nothing?
There are people who don't understand this industry and have made money, but it is always short-term. Ultimately, they will all lose it. Those who make money long-term have mastered the rules and methods, just like running a physical store with the right methods and sufficient confidence.
To give a very simple example, how many people bought gold at 200-300 yuan when it was 1000 yuan per gram and held it until it reached 1000 yuan?
Gold is a global consensus; why haven't many people held onto such a financial product?
Isn't it just due to insufficient understanding? When the price rises from 300 to 400, they can't hold on. Some can't hold when it rises to 500.
If gold works like this, how much more so for the emerging industry of blockchain? If you don't understand, you won't be able to achieve the final results. Even if you buy low initially, you won't dare to invest heavily or hold long-term, and you'll end up missing out on big opportunities.
Instead, when prices rise, you start to regret it, your mindset changes, and you begin to chase the price by investing heavily, only to get stuck again.
Just like gold, when it reaches 1000, many regret not buying more earlier. Next, when it falls to over 900 or 800, many want to invest heavily.
The result is that the small profits from buying low before can turn into big losses due to buying heavily at high prices.
Every industry has its methods. If you don't have a method, seek one. If you want to choose a professional institution, find one to learn from. If you want to self-learn, buy related financial books and summarize your experiences.
There are no shortcuts in any industry, let alone the financial industry.
You have invested half your life’s effort from traditional industries into this industry; why don’t you take it seriously? If you are not serious about money, it will move away from you.
