#Gate广场圣诞送温暖

The rules learned after experiencing two cycles...

1. Always maintain more than 50% cash reserves;

In the last bull market, I only kept 10% in cash, and later even used that to try to catch the bottom, ending up fully trapped...

If there are new gains in the account, rebalance this ratio again. If asset prices drop and the cash proportion exceeds 70%, take out some cash to invest regularly in assets I believe will definitely survive until the next bull market.

2. Be more patient than others and build up your mental resilience;

Those who sell at the top at the beginning of a bull market and those who try to catch the bottom at the start of a bear market are often the same group of people. In any major market move, the first two waves of people making early left-side decisions are highly likely to be wrong...

When you sense market liquidity is extremely poor with risk of turning bearish, observe those around you who are shouting about buying the dip. If two such waves of people appear consecutively over several months, you can consider trying to buy the dip as well.

It's the same when everyone is fleeing at the top. Humans are naturally resistant to abnormal behaviors in nature, and only when a rare event happens for the third time will they swing to the other extreme.

3. Maintain healthy cash flow;

People without stable income are naturally at a disadvantage when facing market volatility, both mathematically and psychologically.