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If you think they are the same, please correct that perception, or you will suffer huge losses in the future!
The story is like this: yesterday, I was chatting with a friend who lost a lot on a contract, and he confidently laid out his plan for the next stage,
He roughly said: "I can't mess around anymore, whether it's contracts or leverage, I definitely can't touch them, and I can't make random trades in spot trading either. Messing around will definitely lead to losses! So I’ve decided from now on, no more short-term trading, only value investing! From now on, I will buy coins and hold them long-term! If they don’t rise, I will never sell! That way, every investment I make will be profitable!"
Honestly, seeing his understanding, I knew this guy was about to get into trouble again—wasn’t he just entering a tiger’s den and a wolf’s lair?
So I threw out a question to him: what is the relationship between value investing and long-term investing, and should he think carefully about this?
As I expected, there are quite a few people who believe that holding long-term is the same as value investing! Especially those who just escaped unscathed from the "short-term trading" tiger’s mouth. In their eyes, so-called value investing is just holding long-term! But in reality, long-term holding and value investing are separated by a distance of ten thousand years. If you think this way, please upgrade your understanding, or you might suffer huge losses in the future!
Long-term investing emphasizes the dimension of time. Value investing emphasizes growth potential and safety margin.
See! These two are completely unrelated. Holding coins for a long time can all be called long-term, for example, if you started holding EOS in 2018, then