A one-sentence summary: Opportunities come from declines

The essence is: Cheap chips only appear during panic drops; during big rises, everyone rushes in, so there's no low-price opportunity.

1. The simplest plain language

- The more it rises, the more people scramble, the higher the price, and the greater the risk
- The more it falls, the more people are afraid to sell, pushing the price to a low point, increasing value for money
Big drop = pushing the price back to a reasonable or even undervalued level, which is when you seize the opportunity

2. Three layers of realistic logic

1. Costs decrease
For the same asset, after falling, you can buy it with less money, leaving more room for profit on subsequent rebounds.
2. Bubbles are squeezed out
Rising brings emotion, hype, and overvaluation; falling washes out the frenzy, leaving behind true value.
3. Divergence creates opportunities
When everyone expects a rise, there's no divergence for low entry; panic-driven drops create huge divergence, providing a window to buy at low levels.

3. Key distinction: Not just buy when it falls

This phrase doesn't mean buy more the more it drops; you need to distinguish between two types of declines

- Healthy correction: fundamentals unchanged, only emotional panic-driven drop → genuine opportunity
- Breakout plunge: logic breaks down, trend reverses, bad news is fatal → after falling, it may continue to drop, not an opportunity

4. Practical mindset comparison

- Greedy chasing during rises: easy to get caught
- Calm selection during drops: only then can you acquire chips at low levels
When others are fearful, I examine opportunities; when others are greedy, I protect against risks—that's the core wisdom of this phrase.

5. Concise summary

Rising profits are realized, falling brews opportunities;
High levels hide risks, low levels hide opportunities.