The Investment Path During Bull Market Pullbacks: Composure, Cycles, and Risk Control
As market volatility intensifies, and amidst the clamor of war clouds and the 'end of the bull market' theory, it is crucial to maintain a clear understanding: a healthy bull market must inevitably be accompanied by periodic adjustments. The current adjustment closely resembles the market panic when BTC retreated from 68,000 to 62,000 last September, followed by several months of magnificent upward movement. For newcomers experiencing the dramatic fluctuations of the crypto market for the first time, this situation represents a core lesson in the market's brutality and cyclicality.
The core challenges are:
1. Market Noise and Human Weakness: Sudden surges and crashes easily provoke 'disjointed' interpretations (immediate rise to 100,000 vs. crash theories), and this type of noise stems from a misunderstanding of the market's essence.
2. The Devouring Nature of Contracts and Leverage: In short-term volatility, high-frequency trading and excessive leverage often lead to rapid evaporation of principal.
3. The Lack of Composure: The ability to withstand a 70% pullback over three days is a prerequisite for participating in frontier assets. Those lacking this composure often miss out on new paradigms like Ordinal inscriptions and modular DA before corrections, and are more likely to question Meme value before a rally, making it even harder to maintain core assets across bull and bear cycles.
Rational Response:
• View Pullbacks as Opportunities: Mature investors focus on value recognition and chip accumulation during bull market fluctuations. 'Rising validates logic, falling presents buying opportunities' is a healthy mindset.
• Strictly Adhere to Investment Discipline: Under any circumstances, NEVER increase exposure to the crypto market using loans or by pledging your only home. Bitcoin's historical returns may outperform real estate, but 'holding ability' is far more important than 'trend judgment.'
• Build a Personal Investment System: Abandon short-term speculative thinking and focus on:
◦ Comprehensive target selection and cyclical awareness,
◦ Reject leverage contracts to control tail risks,
◦ Maintain composure in the face of extreme fluctuations.
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