Understand Buy low and sell high

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2 years ago

Topics: Cryptocurrency

Whether it is fastest value investment or other short-term and long-term investment systems, in my opinion, buying low and selling high is the first principle of investment. As a value investor, please don’t jealous when others make a profit. Because some peoples are short-term investors, they laugh at others for not having patience.

Investing is where personal decisions, right or wrong, come to the fore.

Your wisdom will not be buried here, and your ignorance will not be covered here.

Your wisdom will return you directly in the form of money. Your ignorance will also educate you in the form of lost money.

The reward is sweet, and the lesson is bloody.

This is the cruelest place.

So , no matter which investment school you belong to, buy low and sell high, and you also make money in your struggle, that's the skill. The quality of investment performance is basically measured by the result, which is your process.

What is a low buy? When we say buy low, what time period are we talking about? Can we really buy the lowest point? In fact, the “buy low” mentioned here refers to the average low point. The time period mentioned here only refers to a certain period of time, and does not refer to the time from the start of a coin to the present. Therefore, we should not expect that we can always buy at the bottom, as long as we can buy at the relative low, which is very good, or the average low.

For example, in this wave of LINK, we define the time period as the last 3 months, and the lowest point is the new low of 28 dollar a few days ago. At the time of 28 dollar, it will still have a great probability of falling, especially in such a big bear market cycle. Therefore, we should not expect that we can always buy at the bottom, as long as we can buy at the relative low, which is very good, or the average low.

The low point analysis is best defined as the concept of a range. For example, we can define the low point of this wave of LINKas 20-30 DOLLAR . As long as the price is in this range, we can buy some. Please don't define your low point as an absolute value. Investing needs to be flexible . We are not gods and have no superpowers.

So how can you buy at the average low? In fact, for most people, it is enough to make a decision to invest in a bear market. If you want to invest 50,000 dollar and make a fixed investment in monthly units, assuming that the bear market will last for two years, that is, you have to invest for two years, and the monthly fixed investment amount is 2,000 dollar. It is enough to make a fixed investment every month. Compared with the price of the bull market, the fixed investment every month is basically a low point. When it was time to vote in a certain month, there was a black swan event, similar to that of 94 last year. That's the perfect opportunity, and we can make a big buy.

In addition to the above monthly fixed investment, we can also make fixed investment according to the price. For example, in this wave of LINK market, if we buy some at 40, and then the price drops by 5 blocks, we will buy some. The more the value decline, the appropriate increase in buying efforts.

When investing in the currency market, the impact of news is too great, and everyone's emotions are also very easily affected by price fluctuations. When the price rises, you will feel that you will go to the moon, and when the price falls, you will feel that it will directly fall to the floor.

Therefore, the best strategy is to operate in batches. Don't expect to always be able to buy at the bottom, and similarly, don't expect to always sell at the top. On the way of investing, be less delusional and more rational.