The "greedy" trap in a bull market

Abstract: Be wary of the various "opportunities" that are difficult to extricate yourself from at the end of the bull market.

Now the crypto market has officially entered the second half of this round of markets. At this stage, what we especially need to be vigilant against is our greedy mentality, and this greedy mentality will often fall into various "opportunities" at the end of the bull market.

Let's talk about the following two situations:

The first case: After we sell a coin, it keeps going up, and it's going up so much that people are stunned.

The phenomenon of "a coin sold and then continues to rise" actually occurs frequently in the usual market, but it is particularly prominent in the bull market, which is particularly difficult to extricate oneself.

Why?

Because in the second half of the bull market, once a coin breaks through its past historical highs, its upside is completely opened, that is to say, its increase at this time looks "infinite". This "infinity" brings with it an unapproachable imagination space. Since there is no cap, everyone will begin to envision their imagination: "100,000", "200,000", "1 million"...

At this time, every time it rises to a new high, people will expect it to reach a new high, and this situation continues until the madness period at the end of the bull market, and all kinds of funds begin to pursue irrationally until it reaches its peak.

In this process, as long as we are not selling at the peak, then we will inevitably see our coins rise after selling. Maybe at the beginning, we can still silently comfort ourselves in our hearts: don't worry, this is irrational. But then, after it rose by a day, two days, a week, or even a month later, I'm afraid that many investors' hearts began to waver.

At this time, we will see that there are people around us who bought last week, and this week has doubled several times, and then think about ourselves, hard work in the bear market for all these years has only doubled several times, and it is not as good as people's week's efforts. This devastated mood begins to strongly corrode our hearts and corrode our rational mentality. So we will be red-eyed by the current "money picking market" and rush into it again without hesitation.

This is a mentality, and there is another more common mentality: we will start to think, such a warm atmosphere, the funds are so surging in, the market can not be terminated immediately, I will fast in and out, be conservative, go in today, come out tomorrow, not greedy, just earn a little.

If we don't refrain from these two mentalities and really enter the market again, nine of those ten will eventually lose money.

My advice to you on this situation is to restrain your emotions no matter what, and to be sure not to enter the market until the bear market comes.

The second situation: the crowd of demons dancing, the various plates competing for each other.

This mainly means that there will be obvious rotation in each plate: I probably divide these plates into an echelon of Bitcoin and Ethereum, an echelon of DeFi mainstream coins in the Ethereum ecosystem, an echelon of tokens of other public chains, and an echelon of various tokens in other public chain ecosystems, and then a variety of miscellaneous cards.

This classification is right, everyone will have their own understanding, this is not the focus of our discussion, the focus of my discussion is that where there have been flashes in this round of the market, all kinds of projects with certain popularity will be stimulated by the bullish sentiment at the end of the bull market, and their currency prices have hit new highs.

So we will see that today Bitcoin Ethereum has stopped, and suddenly the DeFi field has begun to rise, and then other areas have begun to skyrocket...

So we will see such a market: A rose several times two weeks ago, B rose several times last week, C rose several times this week; we will see the big Vs start to render such a rich story on the Internet: if someone bought A two weeks ago, bought B last week, bought C again this week, just three weeks, made dozens or hundreds of times.

Nine out of ten such stories will not help but be tempted to listen to them, and they will be eager to try. So we started looking around for which coins might skyrocket next week, and which coins would have the potential in two weeks, using our hard-earned funds to look around for such "opportunities."

In my opinion, where this is "opportunity", it is clearly a trap full of temptations.

Once we indulge in this mindset, we lose all our efforts.

In the face of this temptation, I also advise investors not to chase various so-called "potential coins". In this case, the currency that you do not have, do not buy it no matter how high it rises, as long as it is out of the market, do not enter the market again, and wait until the bear market.

The above two scenarios are almost all the situations that occur at the end of the bull market, and they are also the most testing investors' mentality and rationality, so I have specially listed them to share with you.

Of course, I have also seen a type of genius in real life, who can really enter the market at the climax of the bull market and achieve wealth freedom by grasping the tail of the short market and the rotation of the plate, but this type of person is not an ordinary person, let alone an object that we ordinary investors should emulate and chase.

So we still give up unrealistic illusions, see ourselves by the standards of an ordinary investor, and control our greed and irrationality.

Author: Dao said blockchain; from the chain to get the content open platform "get the number", this article only represents the author's point of view, does not represent the official position of the chain get the "get the number" article, originality and authenticity of the content is guaranteed by the contributor, if the manuscript due to plagiarism, fraud and other behaviors caused by the legal consequences, by the contributor himself responsible for the number of the platform to publish the article, if there is infringement, violation and other inappropriate remarks content, please supervise the majority of readers, once confirmed, the platform will immediately go offline. If you have problems with the content of the article, please contact WeChat: chaindd123.

Linkde only provides relevant information display and does not constitute any investment advice