The right way to face a bull market: lower expectations and know how to be satisfied

Yes, the bull market has arrived.

Investors are constantly excited, prices are on the rise, and getting rich seems just around the corner, but it does not mean everything goes smoothly. The process is always accompanied by countless short-term pullbacks, pressure, and anxiety.

Excessive optimism and the temptation of high returns are significant characteristics of a bull market. It becomes even more important to avoid some traps and cultivate one's investment literacy.

1. What traps should be avoided?

1. Trying to seize every opportunity

Trying to seize every opportunity and wanting to study too many coins, while not having enough bullets, will lead to frequent portfolio changes. Avoid the temptation to frequently switch positions; too many choices can lead to chaotic decision-making. Listen to the majority, reference a few opinions, and make your own decisions.

2. Constantly comparing others' returns

Seeing others' coins rise while your own purchases stagnate makes you think about switching positions; moreover, lacking sufficient understanding of the coins you are about to buy, you don't know why you are holding them, what advantages they have, how much potential they possess, and what the logic behind the purchase is.

3. Don't sell strong coins to allocate to weak ones

Remember that the strong remain strong. What you sell are strong assets, and what remains are weak ones or those that are stuck. Essentially, it is a refusal to acknowledge your ignorance, to admit that you made the wrong choice, or to accept that you have temporarily failed; these are all signs of weakness.

4. Liking to chase highs and sell lows, especially chasing high prices; always selling just a step behind others.

The bull market will not be smooth sailing. In the later stages of the bull market, most people frantically chase high prices, and a lot of good news will emerge in the market, with stories of getting rich flying around, and many assets will reach historical highs.

However, the later stage of the bull market is very short-lived. Most people become intoxicated by the magical numbers in their accounts, completely forgetting the tail end of the bull market, naively thinking it will double again, while forgetting to sell.

As the bull market ends, prices begin to decline. After experiencing the peak of account numbers, unwilling to accept the drop, they think the bull will return… waiting and waiting, turning profits into losses…

5. Extreme lack of patience and frequent short-term trading

It is very easy to be influenced by short-term fluctuations and trade frequently. Frequent traders are destined to only make small profits; big money is hard to come by. Patience is one of the keys to investment success. Also, lacking sufficient market experience and failing to summarize lessons, they try to make money by blindly following trends time and again.

2. What investment qualities need to be cultivated?

1. The ultimate goal of a bull market is to understand satisfaction and learn to take profits.

At a party hosted by a billionaire on Shelter Island, Kurt Vonnegut told his friend Joseph Heller that the host—a hedge fund manager—made more money in a single day than Heller had made in the entire publication history of his popular novel "Catch-22." Heller smiled and replied, "Yes, but I have something he will never have: contentment."

Even if you buy at the lowest point and sell at the highest, you will still feel unsatisfied. This is the true state of most investors; many always compare their returns with others.

2. Manage expectations and do not set them too high

Placeholder partner: One should not have overly high expectations during a bull market; preserving profits is key. As token prices rise, people's attention will increase, and this attention will later translate into purchasing power. Therefore, the more prices rise, the more attention people will pay to the potential for future returns. Generally speaking, the later we enter the "attention cycle," the less favorable our position will be.

3. Don't rush to invest blindly; wait for the next right opportunity.

If the timing is wrong, efforts will be in vain, or even counterproductive. The timing of entry is crucial; if you enter at the tail end of a bull market, you will buy at inflated prices, and if you buy at the tail end of a bear market, you will buy at rock-bottom prices.

What if you make a mistake?

Don't rush to invest blindly; wait for the next right opportunity. Simplicity has tremendous power. Don't complicate everything.

Recognizing cycles, identifying cycles, and grasping cycles should be prioritized over trends; attention should be paid to economic cycles and the alternation of bulls and bears, just as the seasons of summer, autumn, and winter are inevitable.

In summary, if a person wants to make big money, they must understand how to go with the flow, choose the right timing, and reduce trading frequency in daily transactions while maintaining high levels of patience and discipline, along with proper risk control!