From cognition to actual combat, reconstruct investment logic.

Views 1742 Aug 9, 2023

Investment is like a monster upgrade? Divided into five stages

Every stock investor will encounter a lot of difficulties in his trading career. For example, big losses, blowout, facing fear, survival pressure …

Some investors are directly defeated by the predicament and face elimination. Some of them, after struggling for a long time, are not tough enough and are still abandoned at last. But there are a small number of investors who will resist pressure in difficult times, resist those negative emotions, sum up their studies assiduously, and then make a breakthrough.

Trading is an amplifier of human nature, so when investors achieve profits, they will inevitably feel that they are wise and brave, and that they are born masters of trading. At this stage, most people will only sum up the experience of victory and enhance their pleasure of success. However, if there is no failure, we do not know how to fail. Only after experiencing those setbacks and investment traps can we have a deep understanding of how to avoid repeating the same mistakes. In order to really gain a transaction awareness.

Trading experience is not learned. But at a loss.

I once read a point of view that failure is not the mother of success, but success is. What he means is that successful experience will strengthen people's good habits. Therefore, successful people are more likely to succeed. This statement is obviously not true in investment transactions such as stocks, because in many cases, the trading results are correct and successful. But the logic behind this may be wrong. Mistakenly reinforced perceptions will one day make investors pay the price. When it is hit hard, he will have a deep understanding and think deeply about the real logic behind it in order to get an effective understanding of the transaction.

Knowing when you are likely to perish is far more important than knowing under what circumstances you will succeed. Transaction is a process of seeking immortality before development. Therefore, when investment traders are in trouble, the lessons learned are the most valuable wealth in their trading career.

Do not experience several major losses, will never understand what stop loss, do not experience successive losses, will not understand the importance of fund management; do not experience many ups and downs, will never understand the importance of withdrawal control. No one will suddenly realize the importance of controlling the position after a series of huge profits, because he will wish he could do it full.

Embrace the dilemma, learn enough experience, and arm yourself with trading awareness. To survive in the predicament and flourish in the predicament is a necessary process for the success of the transaction.

For more than ten years, from an investor who lost money to achieving a stable return, the greatest harvest is the experience and precipitated research on the market.

The first year, the first acquaintance of the market, simple

Like many investors, when they first entered the market, they were high-spirited and complacent, and regarded the market as a place where they could make money easily. At the same time, novice investors and novice drivers also have something in common. While enjoying the freshness and excitement of driving, they are relatively cautious and simply abide by the transaction principles.

In the two years from confusion to small research, we think that our understanding of the market is simple, the grasp of transactions is also relatively simple, do not know much but inadvertently accord with the basic principles of market investment, and the trading results are OK. And it is the unexplained victory in the first battle that lays the foundation for future trading failures.

3-5 years: against the market, complex

After experiencing the "joy of victory" in the first three years, most people began to fully intervene in the commodity stock market.

There is a saying that "the ignorant is fearless" is the truest portrayal of our years. Once made some money, he mistakenly thought that he had mastered the laws of the stock market and the essentials of stock trading, so he began to become arrogant, like a driver who had been driving for more than two years, thinking that he knew everything. The threat of traffic accidents came one after another.

Over the past five years, our trading results have experienced great ups and downs. I believe you must have experienced the suffering of "wandering alone in heaven and hell". The overall transaction can be summarized as follows: boldness is greater than prudence, sensibility is greater than reason, blindness is greater than consciousness.

6-9 years: awe of the market, humility

From the sixth year of the transaction, it was found that the domestic investment market could not avoid rectification, and the transaction gradually became deserted. At this time, after tasting the ups and downs of the past few years, we will begin to reflect on ourselves: what on earth is stock trading, whether there is a way to speculate successfully, and whether we can make money?

This is a difficult question to answer. Many professional investors have failed to sum up an absolute speculative path to success throughout their lives. Only to face the market again and be in awe of the market! Then sort out your investment journey one by one from entering the industry to the present, and carefully summarize it, and you will eventually find that the path you have traveled, the people you have seen, the books you have read, and what you have learned will be inadvertently fed back to you.

10-12 years: analyze the market and understand

When you take the experience and lessons of the first decade or so, stock trading will step into a new stage-- through the systematic study of your trading history, personality characteristics, and market trading rules, a relatively complete trading thought and system has been gradually constructed.

We do stocks, heard the most, but also the most inseparable from the construction of the trading system! In particular, the integrity and consistency of the transaction logic. He believes that the failure of trading to a large extent comes from the confusion of trading logic and the lack of a strict trading system, and the root cause is the mind and character of traders.

12 years +: comply with the market, peace of mind

In the past two years, China's stock market has entered a period of real great development. With the gradual maturity of traders and the gradual rise of institutional investors, the market characteristics of the stock market are also undergoing obvious changes.

If you entered the business 10 years ago and have persisted to this day, your investment mentality will gradually turn to peace in the past two years, and your investment ideas will continue to be improved. slowly transform from a stock trader who pursues high risk and high return to a sound and rational stock fund management expert.

Many people say that it may be enough to learn the skills and knowledge of stock trading for a year or two, but speculators should cultivate a stable and good mentality and be far-sighted and otherworldly in self-cultivation and realm, even if it takes ten years, it's not much. The contest between speculative market masters is not a contest of technical level, but a contest of investment philosophy, mentality and realm. From the perception of nearly 15 years, the way of speculation is a progressive process from sensibility to rationality, from part to whole, from blindness to consciousness, and from rationality to transcendence.

Edit / Edward

Disclaimer: The above content does not constitute any act of financial product marketing, investment offer, or financial advice. Before making any investment decision, investors should consider the risk factors related to investment products based on their own circumstances and consult professional investment advisors where necessary.

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