Looking Back at History: What Those Who Survived Market Cycles Did Right

The longer I've been in this space, the more I feel "surviving" is more important than "making big money".

I've seen too many people, in bull markets they're on top of the world, in bear markets they disappear without a trace, some never come back.

Today let's talk about what I've observed, what those who survived through cycles did right.

First common point: none of them invested borrowed money.

I know a senior who entered this space in 2013.

Over so many years, he has a hard rule: only invest his own money he can afford to lose, never use leverage, never borrow money.

During that time he was tempted a few times, seeing others make big money with leverage, he hesitated too.

But in the end he held back - he said, not borrowing, at worst just make less, but at least can survive; borrowing, might make more, but one mistake, no more chances.

Second common point: they all study in bear markets, harvest in bull markets.

Another friend, entered when the market was coldest in 2018.

Back then everyone was losing money, everyone was complaining, everyone saying blockchain is a scam.

He didn't speak, every day read books, read materials, studied technology, quietly accumulated.

2020 the market slowly got better, what he learned before came in handy, harvested heavily.

He said, in bear markets, prices are cheap, learning costs are also low - nobody competes with you, nobody disturbs you, perfect to calm down and study.

Third common point: they don't pursue "selling at the highest point", "buying at the lowest point".

Many people always think: wait for more gains then I sell, wait for more drops then I buy.

Result? Up still wants more up, finally drops back down; down still wants more down, finally goes back up.

Those who survived don't think like this.

They feel, making money within their own cognitive range is enough, don't pursue making the last cent.

Buy in batches, sell in batches, don't pursue perfection, don't regret missing.

Fourth common point: they all focus on risk, not only on returns.

Newcomers open asking: how much can this make? How many times can that go up?

Oldtimers open asking: where are the risks here? What's the worst case? Can I bear it?

Different focus, different results.

Only focusing on returns, often ignore risks, in the end maybe even principal is gone.

First focusing on risks, although maybe make money slower, but at least can survive, alive there are opportunities.

Having said all this, not saying copying will definitely succeed - everyone's situation is different, no one can guarantee.

But at least, these are common characteristics of those who survived through cycles, worth our thinking and learning.

Final reminder: this article talks about historical experience review, not investment advice.

Others' experience can be referenced, but don't blindly copy. Investing has risks, you make your own decisions, you bear your own risks.