The decline is a process of risk reduction; true risk often stems from the rise.
The decline is not the risk of the market, but rather an important stage of risk removal. True risk often accumulates quietly during market rises, while real opportunities often arise during declines. Therefore, your decisions during a decline directly affect your mindset during a rise. If you hesitate to buy during a market decline and instead rush to chase rising prices, you are likely to find yourself trapped. Once trapped, many people tend to choose to cut losses, thus falling into a vicious cycle.
Rational strategy: Build positions in batches, take profits in batches.
Instead of rushing to chase high prices during a rise, it is better to adopt a strategy of buying in batches during a decline, and taking profits in batches during a rise. Whether it is investing or trading, the core strategy is always "buy low, sell high, operate in batches." Although chasing prices and cutting losses may bring some short-term profits, this approach lacks long-term sustainability.
Grasping market sentiment is the key to victory.
Remember, respecting market fluctuations and controlling your own emotions is the way to remain undefeated in a volatile market.