At present, we are in the early stages of a bull market. So what is a bull market? Simply put, a bull market is a period in which the market continues to rise, like a bull driving prices higher and higher on its horns. But even in a bull market, prices don't just rise and never fall. During the entire upward cycle, there will be two to three major adjustments, which is like occasionally needing to take a few steps back when climbing, recharging your strength and charging upward again.
In this process, there are three points to understand:
1. Bring new investors into the market: The market's decline reflects that the previous stage of growth has been somewhat weak, and the market needs new investors to drive the next round of growth. These new investors are often drawn into the market by previous gains and subsequent explosive growth, and their entry can help the market regain momentum.
2. Falling for better rising: Adjustment in the bull market is actually part of the healthy development of the market. It will screen out those unsteady investors so that more determined investors can obtain more chips at lower prices. . This is what we commonly call a wash. The purpose of the wash is to reintegrate power into the market and prepare for the next round of greater rise.
3. Get more chips: In the financial market, money does not really disappear, it just moves from one party to another. The market's decline gives determined investors the opportunity to buy at lower prices and accumulate more chips. Therefore, in a bull market, every decline is a good opportunity to add positions in batches. #热门话题