Stock varieties and behavior shaping in the crypto circle

In the cryptocurrency and stock markets, each individual’s choice of investment assets directly influences their investment behavior. Some investors tend to choose stocks of high-quality companies, such as Moutai, Yunnan Baiyao, China Merchants Bank, etc. These large-cap or premium stocks usually experience relatively stable price fluctuations, and holding them long-term can bring substantial returns. Others prefer investing in concept stocks, such as those in the lithium battery, rare earth, new energy, and other sectors. These stocks often see larger gains, but once they decline, the fall can be quite sharp.

When exploring different investment approaches, people often overlook an important factor: the investment personality displayed during the process. Different assets involve different levels of speculation, and choosing one over the other can subtly shape an investor’s character. Investment is not just about profit or loss; it is a long-term process that impacts not only financial returns but also personal attitudes and values. In various investment fields, an individual’s investment personality is gradually formed through subtle influences.

Stocks and life share similarities, much like managing interpersonal relationships. In human society, we are often influenced by our surroundings. If we choose to associate with people of poor character, we risk being negatively affected. While we cannot definitively say this will corrupt our morals, it will at least have some impact.

For example, frequently dealing with dishonest people can make a naive person become suspicious, as these individuals are always deceiving him and causing losses. Additionally, such people may become habitual liars, because human behavior is deeply influenced by the environment. They may unconsciously be affected by the negativity of those around them, forcing a change in their own behavior.

Life is like the stock market: when we indulge in speculation and chase short-term news, it often stems from a desire to get rich overnight. We chase after news that might hit the daily limit tomorrow, constantly seeking concept stocks. These stocks are highly volatile and often influenced by insider information and hot topics.

Our behavior gradually becomes dominated by this mindset—seeking quick in-and-out trades, engaging in speculative behavior aimed at overnight riches. Habitual reliance on this approach gradually alters our investment mentality and behavior patterns. Short-term investing and hot stock speculation often lead to negative consequences.

When buying such stocks, investors usually face anxiety over price fluctuations. On one hand, they are eager to buy to avoid missing out on gains; on the other, once the stock rises, they worry about a decline and rush to sell. This short-term mindset prompts frequent trading, leading to quick in-and-out phenomena. After purchasing, investors hope for quick profits; if the stock doesn’t rise as expected, they become anxious, aware that they are just following the trend and may be the last in line if others don’t follow.

Hot stocks attract attention due to their high volatility and rapid price movements. Investors involved may be influenced by this. As the saying goes, “People build a house, and that house influences the person.” External factors can shape individuals and influence their development trajectory.

Whether speculators or investors, the stocks they choose ultimately shape their personalities. Therefore, selecting stocks must be done cautiously. Speculative or highly volatile stocks, if not purchased, may cause anxiety and fears of missing opportunities. When holding large amounts of cash or being in a flat position, it’s natural to feel restless. Inner fears coexist with a desire to buy, worried about rising prices, revealing greed. After buying stocks, if they don’t rise, worries about falling prices also surface.

In the stock market, when prices start to decline, investors often face a dilemma: hold the stocks and wait for a rebound, or buy more during the decline? Seeing other stocks continue to rise can make investors even more conflicted and indecisive.

Holding stocks also brings hesitation—wanting to seize the opportunity when prices rise, but fearing further drops. This mix of greed, fear, and anxiety prevents clear, rational decision-making. When considering selling, they worry about missing higher gains, leading to further hesitation. In such cases, investors can easily fall into a vicious cycle, trapped by greed and fear.

In the crypto and stock careers, prolonged indecisiveness continually shapes your character. You may find it difficult to hold high-quality stocks long-term, always worrying and rushing to sell when prices fall. This behavioral pattern not only affects your investment decisions but also your lifestyle. Once you develop this mindset, changing it becomes extremely difficult.

There are commonalities between the crypto market, stocks, and life. In the crypto market, holding quality stocks long-term is one of the key ways to profit. Similarly, in life, maintaining correct values and goals over the long term is crucial for success. Developing habits of impatience and indecisiveness will hinder your stable growth in both the crypto market and life. Therefore, to succeed in the crypto market, you must first adjust your thinking and behavior patterns, establish correct investment principles, and practice patience.

High-quality stocks often have longer sideways periods and shallower pullbacks. In contrast, speculative stocks tend to be more volatile, and when they pull back, investors feel anxious. Even with quality stocks, past experiences with “junk stocks” can influence investors’ nerves, making them uneasy about pullbacks. This mindset may stem from previous investment experiences, where investors worry that if they don’t sell in time, the stock will fall back to the starting point. However, in reality, holding quality stocks long-term usually does not lead to capital loss.

In the crypto and stock markets, some quality stocks should be bought during pullbacks and even held steadily. However, if you hold quality stocks but choose to sell them, it may be because you lack the habit of long-term holding. Similarly, if someone can hold good stocks for the long term, they probably wouldn’t give up easily.

When you start chasing poorly performing stocks, you tend to sell your good stocks. Excellent stocks are like trustworthy people—worthy of reliance. This philosophy applies both in investing and in life. Just like in marriage, the first step is to be a kind person, rather than seeking fleeting excitement or pleasure, and not chasing unreachable goals.

For this company, simply maintaining steady operations is already a form of success. Usually, the stock price experiences short-term rises, but most of the time it consolidates sideways, showing a stable trend. It’s not about daily ups and downs but resembles ordinary daily life—lacking excitement but with its own unique flavor.

This kind of stock gives a very reliable and safe feeling, without the emotional swings of today’s highs and tomorrow’s lows. Similarly, the longer you hold such stocks, the greater the returns. Their prices can multiply many times over in years or even decades. Quality stocks can be compared to good people—spending more time with a good person makes you feel better, safer, and more joyful. Therefore, quality stocks and good people share many similarities.

Many good stocks, like Moutai and China Merchants Bank, have this characteristic. They tend to rise for a period, then enter sideways consolidation because investors are willing to hold without selling easily, resulting in smaller pullbacks. When these companies perform well and are widely recognized, their stock prices will inevitably rise again.

Conversely, stocks with poor performance tend to be unstable in their gains and often fall back quickly, making investors uneasy. Therefore, as investors and speculators, we should choose stocks carefully, because ultimately, stocks reflect your investment style and personality. It’s advisable to avoid poor-quality stocks, just as you would avoid associating with bad people.

Bad people may not necessarily lead you down a bad path, but at least they will cause doubts in your mind. When holding stocks, you might feel uncertain; after selling, you may feel anxious; holding cash, you may be eager to buy again, because you cannot grasp their nature. One trait of bad people is indecisiveness. Interacting with such individuals can make you doubtful and uncertain. Therefore, life’s choices are crucial—choose to associate with upright people.

In life, just like choosing not to go near the river, we can avoid some potential dangers. Once we choose the wrong path, it becomes very difficult to correct the course. The choice is vital because a wrong turn can trap us in an inescapable dilemma. When we deviate from the right direction, no matter how good the transportation or guides are, speed won’t help. Many make similar mistakes—investing in poor stocks with huge volatility, hoping for a big jump tomorrow.

After some effort, they often find failure and begin to doubt their skills. They spend day after day studying technical indicators, volume, and stock prices, constantly seeking ideal buy and sell points. This is like pulling a cart with your head down without looking ahead. Choosing the right direction succinctly is crucial. For the stocks you choose, conduct in-depth fundamental analysis, make wise decisions, and focus on correct actions. Don’t obsess over daily fluctuations or the limit-up phenomenon. If you find yourself often chasing overnight riches and full of expectations, you are likely falling into the “junk stock” trap.

Over 95% of stocks in the market are speculative, aiming to cater to investors’ desire for quick profits, short-term trading, and instant success. Therefore, becoming an excellent investor is like becoming a person of high moral character—neither is innate. Our participation in the crypto and stock markets is solely for profit; otherwise, why invest in these markets? Entering the crypto market doesn’t mean we aim to be good people, but rather, it’s an excellent practice ground—allowing us to experience failure, reflect on our shortcomings, seek improvements, and ultimately enhance our cultivation and knowledge.

In bustling cities, it’s actually the easiest place to cultivate oneself. Cultivation doesn’t necessarily require going deep into mountains or forests. On the contrary, I believe the crypto market is a very good place because it offers many opportunities to make mistakes, discover your flaws, and correct them—what a precious experience. Therefore, I emphasize that the earlier you choose to cultivate yourself, the better. Don’t go astray.

It took me a long time to realize this. I want to stress that choosing the right target is crucial because poor targets will shape your character and behavior, leading to huge losses. Therefore, we should carefully select the people we associate with and the companies we invest in. Quality companies, although their stock prices may not fluctuate wildly every day, are stable and reliable, giving holders peace of mind. Good companies rarely go bankrupt; unlike some that can see their stock prices fluctuate dramatically after earnings reports.

Holders need to feel assured, just like in marriage. If you feel secure about your marriage, you will also feel secure about holding stocks. Conversely, if you worry constantly about your partner’s fidelity, that mindset is unhealthy. Therefore, choosing a good person to marry means you should also be a good person yourself—avoid ill intentions. If you choose a good person, both of you can live a simple, peaceful life. Even if the stock only rises 0.1% daily or 5% monthly, in the long run, it’s reliable.

After one, two, or three years, thanks to compound interest, the value of your investment can grow dozens of times. This reminds me that many principles of life are similar to investment principles, and choosing the right investment assets is crucial. The same applies in a bear market. The longer you hold during a bear market, the more it might make you think that once prices rebound, you should sell immediately. Because bear markets often dip again, this mindset can lead to a mentality of earning small gains and avoiding continued holding.

Therefore, holding stocks is key to making profits in the crypto and stock markets. Holding stocks provides stable returns because their value tends to grow over time. However, in a bear market, prices keep falling, and investors often develop mistaken trading ideas. Frequent buying and selling in a bear market is hard to profit from, and even in a bull market, it’s difficult to gain, sometimes causing missed opportunities. Moreover, once you’ve chosen the right stocks, selling immediately when prices rise can easily lead to losses.

Thus, I do not recommend frequent trading in a bear market—not because stock prices haven’t risen after buying, but because investors are easily misled by this mindset. In a bear market, regardless of stock quality, investors tend to fall into a cycle: prices go up, then down; go up again, then down again. Ultimately, investors become anxious, unable to hold, and lose confidence.

When a true bull market arrives, it’s even harder to hold stocks. Even if you make the right judgment, you may find it difficult to stick to it, as Mr. Lin Yuan mentioned. Abroad, many funds also face this situation: when a bull market begins, they switch from bear-market fund managers to those suited for bull markets.

Because this requires different attitudes and behaviors, and humans find it hard to change. The same person adopting a different strategy in a bear market versus a bull market often finds it difficult to be optimistic. Therefore, investors are advised to avoid high-risk stocks, hold high-quality stocks as much as possible, and avoid short-term trading to prevent market volatility from harming their investments.

Being overly sensitive to price fluctuations in stock investing often traps people in short-term operations. Hesitating and trading frequently only increases risks and losses. Conversely, holding quality stocks provides a sense of security, making investors more confident. Additionally, thoroughly researching a company’s operations boosts confidence. Therefore, during price declines, rational investors may choose to buy the dip rather than blindly sell out. Such a strategy is more conducive to long-term, steady asset growth.

**$USUAL **