Facing a rebound, what should we do?

On March 20, the digital currency market experienced a major correction after the recent plunge. Bitcoin rose to a high of $6,600, and Ethereum also once stood at $140.

In an article a few days ago, I suggested that a phased fixed investment approach be adopted under the current environment, starting from $5,000 for Bitcoin, and investing once every $500 drop. Now Bitcoin has not only not continued to fall, but has jumped to $6,000. At this time, long-term investors who are preparing to invest in phases will have two emotions:

The first is anxiety, not knowing whether Bitcoin can fall further and hoping that Bitcoin will fall again, back to $5,000 or even lower, so that one can continue to invest at a low level.

The second is regret, regret for not buying more at the $5,000 level.

Due to the influence of these two mentalities, some investors will ask whether the current market is a reversal or a rebound. If it is a reversal, then the "bottom" of $5,000 may be gone forever; if it is a rebound, then there may be opportunities to continue to invest at a low level in the future.

In fact, both of these mentalities must be overcome, because we cannot predict whether the future market will continue to rise or fall again.

If the market does not fall below US$5,000, we will continue to invest at fixed times; if the market falls below US$5,000, we will start investing in stages again.

During this Bitcoin rebound, I learned that several senior investors in the currency circle may have encountered unexpected events. They began to short Bitcoin in large quantities when it fell to around US$5,000. As a result, this round of rebound caused all of their positions to be liquidated.

I have talked about contracts and leverage too many times in my articles. This time I want to talk about some of the so-called "big guys" in the circle who had their positions liquidated in this rebound.

In almost every bear market and bull market, we can see big guys whose positions are liquidated. Some of these big guys never get up again after falling.

The "legends" they left behind in the world will only remain in the memories of their peers who have experienced that era, just like a meteor that briefly streaks across the sky, and no one will remember them afterwards.

This type of tycoon is a typical example of a hero made by the times. They seized the opportunities of their time, but unfortunately, many of them may not recognize the fundamental reason why they were able to seize the opportunity, whether it was because of their ability or their luck.

If you seize an opportunity because of luck, but your ability and cognition do not keep up with the pace of development, you may encounter setbacks in the future and never recover. Only by constantly improving your ability and cognition can you become more courageous and stronger in the wind and rain.

The investment market is not a short-distance race, where explosive power is not tested, but a long-distance race, where endurance is tested. The final winner in the market must be the one who can survive for a long time and laugh last.

In this regard, Buffett is definitely something we can all learn from. At the end of last year, when U.S. stocks were rising steadily and the Dow Jones Index was about to cross the 30,000 point mark, Buffett continued to sell stocks.

When the U.S. stock market plummeted recently and airline stocks fell to a terrible level, Buffett began to buy in large quantities. Some investment institutions on Wall Street ridiculed him for being deeply trapped in airline stocks.

Every time Wall Street ridicules Buffett, it almost proves his wisdom. No one remembers those who ridiculed Buffett. Everyone only sees that Buffett has stood firm for decades.

We need to adjust our mindset and control our emotions. We need to survive this financial storm and become the investors who stand firm and have the last laugh.