This cycle of bull and bear markets has caused many people to fall back into poverty. Why is it easier to make money than to keep it? I’ve done a simple analysis—what other insights do you have to add?
1. Path Dependence Trap
Many people can’t hold onto their money because they try to use the “same methods” that made them money initially to “protect” it. For example, relying on the first pot of gold earned through bold bets, then trying to leverage more or turn a bicycle into a motorcycle to protect that money. As a result, a single market cycle can wipe it all out.
Making money requires