What is the most important thing in investing? ft. Cryptocurrency Bear Market Survival Guide

Jul 4, 2022

Is this the first bear market you've experienced? How many times did you lose money on your investment?

This is a bear market with extreme panic in the market, but it is often a good opportunity for senior investors to enter the market. But if you're as panicked as the market, then I'm not advocating for you to overweight, because there's often a low and a low.

I would like to share with you first, two investment targets that have been ups and downs in the past:

1. Agora (API)
Shengwang, a company from China, is the core voice service provider behind Clubhouse . At the beginning of 2021, when Clubhouse was in full swing, I also wrote two opinion articles:

At that time, I evaluated the technical implementation of the same function with WebRTC. Although it seems not difficult, in fact, it should still be prone to problems such as voice delay. So far, Twitter Space and Discord voice/stage channel really still need to improve the real-time voice quality, especially the latter has the problem that someone's voice can't be heard suddenly in almost every AMA 🫤

However, "Voice Social" eventually only became a part of the existing social products, and failed to become a single product (feature, not product). In addition, the " Chinese government factor " has caused almost all Chinese concept technology stocks listed overseas to plummet, and Agora has fallen more than 90% from its high point.

2. Yuantai (8069.TWO)
A Taiwanese manufacturer specializing in electronic paper display screens. If you have an e-book reader of any brand, almost all of them are from Yuantai's e-paper screen.

I analyzed and optimistic about its development in 2014 , when Amazon was attacking the e-book market, and I also bought a Kindle e-book reader (used so far) with a minimum price of US$69.

The e-book market still only accounts for about 30% of the overall book market in the end. The stock price of Yuantai has risen sharply since the end of 2020, and has climbed about 6-10 times compared with the same year.

What is the most important thing in investing?

In these two cases, one is an investment that can lose up to 90%, and the other is an investment that can earn 9 times. Sounds like a pity to miss the latter, doesn't it?

However, these two analytical experiences have both brought me equally profound learning opportunities and allowed me to look at investment more open-mindedly. In comparison, it is not surprising that crypto assets in the Web3 currency circle have skyrocketed and plummeted.

Senior investors should be able to see that the previous case description ignores too many details that should be paid attention to in investment (such as financial report analysis), and lacks more in-depth "second-level thinking" (such as "My opinion is correct." What are the odds?"). If you don't pay attention to the factors, you may just think of investing as a gambling lottery; however, this is not necessarily a bad thing.

In my opinion, the most important thing in investing is to first recognize what kind of person you are, what kind of risks and investment behavior patterns you can take, and then you can make appropriate arrangements for your investment plan. For example, do you recognize whether you are more profit-seeking or avoiding losses?

Then, as "The Most Important Thing to Invest" says: "When you don't get what you want, you gain experience." "The most valuable lessons are learned in difficult times." So the current The bear market of , isn't it the best time for you to study?

The popular podcast in Taiwan has become a popular target for many young people, and the book also encourages people to read "prototype information" (original data) instead of believing in "processing knowledge". Therefore, the most important survival guide in a bear market is to understand your own shortcomings, and calm down to learn valuable first-hand knowledge and experience, and cultivate the wisdom of your own judgment.

After all, only those who can still take their time when the market is panicking can be greedy when others are fearful.

We took some time to prepare a three-month study and essay writing activity, so that you can calm down, choose topics in areas of interest to study, and then share your own experience. For example, you can study traditional investment perspectives to reflect on DeFi products, or you can study monetary economics to think whether crypto can beat traditional currencies. Are you ready to settle down and dive deeper and farther with us to participate in " Slow Pace. Bear Market. Study. Essay "?