What should we do in the bull market? Every decline is for the best pump. How to judge the beginning and the end of the bull market?


The prominent feature of a bull run is that there will be at least two to three major mid-way corrections throughout the entire process, and after each correction, it will continue to surge forward; unless it is the final decline, the previous declines are all for a better pump, and then each time it will be higher, until the final correction when the bull run will come to an abrupt end.
So, how do you accurately determine which decline is for a better pump, and which pump is in the final "crazy" phase?
- In terms of various tracks, various zones rotate, market sentiment big pump, more and more opportunities, and assets on hand begin to appreciate in multiples.
- In terms of emotions, this is an important judgment basis. This stage is called the so-called bull start, when there are the most opportunities and the capital accumulates the fastest. Don't be afraid of decline at this time, try to discover as many opportunities as possible, find a way to preserve the principal, select the best return on investment among many opportunities, make heavy bets, and then in the phase of the craziest bull emotions, gradually sell the assets you built a position in at the bull start.
Only after such a cycle can your wealth achieve a qualitative leap.
As for how to determine the last adjustment or the turning bear phase that may lead to a big drop.
Remember a word: the judgment of the overall market at any time comes from: emotional theory + specific market data.
From the market data perspective, a normal Bull Market progression should be 'volume increase, price rise', which means that the volume of the subsequent wave of price rise should be greater than that of the previous wave before the adjustment.
If there is an obvious divergence in the pump of a wave, that is, the trading volume of the new pump does not reach a new high or even lower than the trading volume of the previous wave, but the price keeps reaching new highs, this is a highly dangerous signal.
The timing of the change in market trend has probably occurred.
In this case, if change in market trend occurs, the consequences would be unimaginable
At this moment, it's the stage of sprinting. The Market Cap is increasing, and the account funds are growing. But, never ever think about making the last penny.
At this moment, it is essential to have a clear understanding:
If you are still fixated on the account's former highest Market Cap, fantasizing about reaching the peak, then you are a gambler.
The ultimate result is: toughing it out through the whole 'bear market,' ending in tragedy.
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