The Self-cultivation of Investors: Focus on Economic Cycles and Bull-Bear Alternation

Integrating from the field of cryptocurrencies.

After spending half a day, the Dolphin Research has systematically reviewed this book, jokingly referred to by many cryptocurrency enthusiasts as the one Li Xiaolai uses to "harvest leeks."

From the book "The Self-Cultivation of Leeks," 24 key points have been extracted for everyone to have a quick look at.

The full book can be read at the following address:

The Self-Cultivation of Leeks

1. Common characteristics of "leeks": They severely lack basic reading skills. They are the kind of people who never read product manuals even after buying things for a lifetime, always asking others how to use something.

2. The fundamental reason for the end of each market cycle is "exhaustion of entry funds." When even unrelated people start entering the market, the bull market is about to end; you should just watch and not buy anything... wait until the bear market, wait until everyone is cursing, then start buying!

3. What to do if you are "stuck": In a bear market, if you still have money, slowly increase positions to lower the average cost; if you don't have enough money, work hard to earn money outside the market.

4. Almost all successful traders are experts in learning and research. Speculators refuse to learn, while investors are good at learning. In a bear market, besides earning money outside the market to increase positions, one must also continue learning.

5. Pay attention to economic cycles, in simple terms, the alternation between bull and bear markets. Focus on cycles and the true trends behind them.

6. At the end of a bull market, no matter who buys, they are buying at artificially inflated prices. At the end of a bear market, no matter who buys, they are buying at extremely low prices.

7. Successful traders are always a minority, sharing the common trait of not being swayed by appearances and enjoying exploring the essence beneath the surface.

8. Going all-in is a big taboo for traders; always keep a certain proportion of cash on hand.

9. Playing futures without professional skills is like "seeking death."

10. Learn to calculate risks and set stop-loss orders.

11. "Prepare for the worst" is always better than "blind optimism."

12. The higher the trading frequency, the closer it is to a "zero-sum game." Reduce trading frequency, reduce it even more, and even consider it non-existent before it rises tenfold.

13. The shorter the term of a prediction, the closer it is to flipping a coin; the longer the term, the closer it is to a logical judgment.

14. As a participant in the trading market, it's unlikely you will sell at the highest point or buy at the lowest point.

15. Making a foolish mistake is okay, but once you realize your foolishness, correct it immediately. Never rationalize your foolish behavior. Pain + reflection = progress.

16. Methods to improve the risk-return ratio: Choose higher-quality trading targets; select the best trading times (such as buying after several sharp drops); hold for a longer period, experiencing multiple bull and bear cycles.

1. Set a stop-loss line to reduce your risk exposure; decrease the proportion of each trade amount to the total capital; enhance your ability to make money outside the market.

2. Early-stage investors have many more failed projects than successful ones. Investing in early-stage projects is definitely not something novices should do. It is necessary to consider early-stage investments only after accumulating a certain amount of experience.

3. Beginners should only buy 1-3 assets with the highest trading volume and trust the collective intelligence of the market.

4. In the trading market, whether it's cash, time, or life, never go ALL-IN.

5. In a bull market, extreme fear of missing out peaks when all types of investors go ALL-IN, indicating the end of the upward trend; in a bear market, when most "novices" become calm after experiencing disappointment and cursing, the downward trend gradually weakens.

6. In the future, the dominance of Bitcoin will continue to decline, possibly dropping to below 5%.

7. Principles of blockchain investment:

• Does the world really need this?
• What problem does it solve that was previously unsolved?
• Is decentralization really necessary for this?
• Will financial transparency actually improve its efficiency?
• To what extent does it resemble a DAC (decentralized autonomous company)?
• If we decide to invest, what proportion of funds should we invest?

1. Blockchain investment tips: In a bear market, you can buy freely, but after a period of time in a bull market, you should start being cautious, cautious, and even more cautious.