A common weakness of small and medium-sized retail investors is that they are able to hold to the bottom in bear markets but not to the top in bull markets. For example, in the previous bear market, a large proportion of stockholders got to a low of 998 points from a high of 2245 points. And in the bull market on the way up, many people in 2000 points, 3000 points on the stock sold, can’t take the current more than 4000 points, more can’t take the future bull top of the higher point. Why is this?
In a bear market when people buy stocks or bullish, but the stock fell, this time down not much, so think, temporarily pull back a little will go up, buy is not wrong. While thinking this, the share price falls again and the loss is already at 10% or more. At this point, i thought, "I'll get out when it bounces back, so i don't lose any money or a little. But then the share price may have rebounded a little or not even rebounded directly down, the loss has been in 20% or 30%. This is when you think, can’t sell, sell loss is too big. But the share price has fallen again, the loss has been in more than 30%. So, it is ironclad, love how down how down it, anyway, not sold. So, hold the shares also held to the bottom.
Why can't you get the top in a bull market? The bull market has started, the shares are rising, there are first up there after the rise, generally will rise. In the bear market has been suffering for many years, see no loss or loss less, first out, who knows if this is a bull market, not a bear market rebound, right? So, you take it for years and end up with no loss or a small loss. The first thing you can do is to take it upwards, and when you have 20% or 30% profit, you can also hurry up and get it out of your pocket, don't be afraid of being trapped again. This is the mentality of people in the previous period of market development to 2000 points, 3000 points.
Through the above comparison, investors should recognize a rule. It is that in a bear market the share price is lower than one wave. Investors should not die against it. As long as the bear market is not at the bottom, they should get out early, and the sooner they get out, the better. This is because investors can buy back lower shares at the bottom of a bear market. And in a bull market, it's one wave higher than another, as long as it's not the top to hold steady, no matter how the middle of the shock will not care about it, anyway, the later point will be higher, determined to hold shares to the top of the bull, and every deep transfer is seen as an opportunity to buy.
The bull market has the resilience to hold shares, there is "Not to the great wall is not a good man" Determination, no matter how many twists and turns in the middle, even temporarily set, is foolish to hold, straight to the top of the infinite scenery, then see if you are a big winner.
