The first type: the stock price soared and remained high for many years.
The second type: the stock price plummeted and hovered for many years.
90% of investors may choose the first one. After all, who doesn't like making money
True or false, let's look at a simple example: when you buy clothes, do you want the price to be high or low?
If you buy clothes, you must hope the price is cheaper. Clothes sellers hope that the price will be higher, and so will the funds. We buy a fund and sell it at a higher price in the future. Then, when buying a fund, do you want the fund price to be higher or lower?
Of course, I hope the fund price will be lower. In other words, the stock is in a falling market.
Most people are used to following the trend, buying when the stock market goes up and selling when it goes down, as if this is the way to make money, and the effect of making money is obvious. I bought it today, and it will go up a little tomorrow. I will make money the day after tomorrow, and I can sell it, and then I will find the next buying opportunity. Isn't this the band operation?
It seems too exaggerated to buy if you fall. What if it keeps falling? Actually, you don't have to think so. This is equivalent to when the market goes up, you don't think the market will go up all the time. You can buy discounted funds in a bear market, and you can only sell funds with rising prices in a bull market.
Buying funds in a bear market is a test of mentality. First of all, we must endure loneliness, wait quietly for the spring flowers in the market, keep our initial heart, and insist on making long-term value investment.
Having said that, in fact, no one will refuse the bull market. Everyone likes the joy of harvesting, but first of all, they must endure the bitterness of sowing.
We like the bear market because there are more opportunities to intervene, and what we finally expect is the happiness of the bull market harvest.