The Cycle of the Investment Market and the Way to Survive

The investment world is full of challenges, and very few people can survive and profit in the market for a long time. It is a brutal game, and most people find it difficult to win in it.

The market always cycles between bull and bear phases, and there is no such thing as perpetual growth or decline. Every investor needs to find a survival strategy that suits them; one cannot simply replicate the success of others. Some excel at short-term trading, some focus on fundamental project investments, while others engage in cross-cycle positioning. Each person's strategy is unique.

However, one point worth noting is that excessive focus on price fluctuations often leads to poor investment outcomes in the long run. When a person easily profits from trading, it can lead to blind confidence. But the market will eventually redistribute profits, and whether one can truly earn and retain profits mainly depends on the investor's psychological quality.

Investment behavior essentially reflects a person's inner qualities, such as the balance between desire and restraint. This determines whether individuals choose to buy, sell, or continue holding. Each decision has its underlying logic, based on personal judgments regarding money, fundamentals, speculation, market trends, and other factors.

The real question worth contemplating is not when the market will rise or fall, but how to maintain inner peace. If you lack confidence in a particular investment, it's best not to hold it; otherwise, it may continuously affect your judgment and lead to operational mistakes.

In this rapidly changing market, hot projects emerge one after another, attracting the attention of investors. For true industry builders and long-term investors, it is essential to focus on the development of fundamentals rather than short-term price fluctuations. Even in a bear market, projects with solid foundations, such as the metaverse and crypto games, may demonstrate more resilience due to having actual user consumption.

The cryptocurrency market is primarily supported by two groups: one that seeks to outpace inflation, and another that hopes to outperform Bitcoin or Ethereum. The former includes traditional financial institutions, whose capital flows can significantly impact the market. The latter consists of core supporters within the industry, who often become the backbone of the market during bear markets.

It is worth emphasizing that the "all-in" strategy, although it may bring high returns, is by no means the best choice. In any market, the primary task is to ensure one's survival rather than to pursue maximum profit. From a probabilistic perspective, the risks of investing all funds typically outweigh the potential returns.

Finally, it is important to recognize the diversity of the investment world. There are no universally applicable investment rules, and the aforementioned viewpoints may not apply in certain situations. Everyone should introspect and find the investment approach that suits them best. This is the true path to success.