E minutes to understand: the core investment principle of retail investor's steady profit

2024-10-28 06:56:38

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The encryption market is unpredictable, but classic investment principles still apply. Combining the golden investment rules of legendary stock investor Peter Lynch, individual investors in the high-risk environment of the crypto world also have a stable strategy to follow. From understanding the fundamentals of the project to avoiding chasing the market, Lynch’s wisdom provides encryption investors with a clear path, helping us find a balance and return in the turbulent market.

Researching the fundamentals is key: delving into the technical advantages, founding team, and future plans of the project. Simply buying stocks or Tokens at low prices without understanding the project poses significant risks.
The advantage of individual investors lies in their unique knowledge and experience: as investors, they can leverage their understanding of new tracks and their observation of the community to choose projects they favor in familiar tracks and seize the opportunity for project growth.
Follow the company/project rather than just the stock/crypto price: behind a stock is a company, understand how it operates instead of blindly betting on pump-and-dump schemes. Behind a Token is technological innovation, development progress, and community activity, not just short-term price fluctuations.
Avoid gambling mentality: Investing heavily with a ‘take a gamble’ mentality can lead to significant losses. The crypto market is highly volatile, so it’s important to avoid going all-in or chasing rising prices excessively.
Follow the long-term price fluctuation instead of the short-term one: The company’s performance and stock price are long-term related. The short-term price fluctuation of the encryption project may deviate from the actual development of the project, but in the long run, high-quality projects will return to their actual value. Therefore, it is important to be patient with projects that have long-term potential and avoid being affected by short-term fluctuations.
When you can’t find an opportunity, wait and see: when you can’t find a suitable investment target, keep your funds safe and wait for better investment opportunities.
Simplify the investment portfolio: It is not advisable to hold too many stocks/tokens. Instead, deeply research and continuously follow the selected stocks/token dynamics to ensure sufficient understanding of each project, rather than dispersing them into a large number of assets.
Avoid chasing the market: Avoid hot tracks in popular industries and look for projects/companies that have substantial innovation in the technical field, as they have more long-term value rise.
Be prepared for market downturns: Market downturns are also good opportunities to buy. Be mentally prepared and patiently wait to buy high-quality tokens at low prices when the market falls, instead of panic Cut Loss.
Don’t be shaken by the news: focus on the fundamentals of the company/project. The crypto market news is frequent and emotional, don’t panic because of short-term negative news, concentrate on following the technical progress of the project itself and community feedback.
The longer you hold high-quality projects, the greater the return: Holding good company stocks for the long term will result in greater returns. Likewise, the Fluctuation in the crypto market’s prices is high, but holding high-quality projects for the long term helps to achieve stable returns. Even if you miss out on early gains, holding high-quality Tokens for the long term is still a prudent strategy.
If you don’t have time to research, choose mainstream stocks/Token: If you don’t have time to research emerging projects, you can choose Mainstream Token with high Consensus as a long-term holding target.

Reasonably allocate funds, control the risk of each investment, and prevent trading from becoming gambling. In this issue of ‘E Minutes’, we hope to help everyone avoid risks and achieve more stable returns in a high fluctuation market through Peter Lynch’s classic investment wisdom. As a global partner of the Argentine national team, 4E provides a one-stop trading platform covering more than 600 types of assets such as Crypto Assets, US stocks, indices, forex, and commodities, and especially introduces the Newbie simulation account to help everyone get started easily. If you are interested in investment, why not experience the convenience and security of professional trading.

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