![[Investment Philosophy (3)] - Overcome fear and operate against the market](/_next/image?url=%2Fimages%2Fblog%2Ffb-posts%2Fen%2Ffb-post-0011-cover.png&w=3840&q=75 "[Investment Philosophy (3)] - Overcome fear and operate against the market")
[Investment Philosophy (3)] - Overcome fear and operate against the market
Investment must be in the opposite direction of the masses. When the general environment is favorable for the stock market to rise, a market fall is an opportunity and a good thing. The hardest thing about investing is overcoming the fear of falling markets. The mentality process of investors is as follows: When the market first rises and falls, investors don't feel it or care at all; in fact, many people are "careless" in the market! When the market continues to fall, they think it is a long-term hold and don't worry! When the market continues to fall, they think, ah! How can I sell it after it has fallen so much? I will lose money as soon as I sell it. I decided to go with the market.
Investment must be in the opposite direction of the masses. When the general environment is favorable for the stock market to rise, a market fall is an opportunity and a good thing.
The hardest thing about investing is overcoming the fear of falling markets.
The investor’s mentality process is as follows:
When the market first rises and falls, investors don't feel it or care at all; in fact, many people are "careless" in the market!
When the market continues to fall, I want to hold it for the long term, so don’t worry!
When the market continues to fall, think, ah! How can I sell it after it has fallen so much? I will lose money as soon as I sell it. I decided to die with the market and not sell it! 【Courage is great! 】
When the market decline intensifies, you start to imagine and scare yourself, thinking that the market will definitely fall badly, your assets will return to zero, and everything in the past will be like yesterday, so you decide to sell out all your stocks and escape from the fire pit, thus ending the short-term pain.
When the market bottoms out after a sharp decline, the short-term pain is just over, but the long-term pain is slowly beginning.
If you keep the above investment mentality and repeat it again and again, you will always lose money. To change your destiny, you must make a courageous counter-market operation and reverse your destiny. (Although doing so is the scariest behavior in the world, it is indeed the safest investment method.) As long as you survive a decline, your destiny will begin to change, and investment will begin to continue to make money at the right rhythm and in the right cycle.
The above mentioned is based on the investment index (ETF), and individual stocks are not within the scope of discussion.
The volatility and uncertainty of individual stocks are high. To operate against the market, you need more courage, which is even more terrifying! And even if you have the courage, sometimes individual stocks will still make anti-market operators [pulverized to pieces]!
Change your ways! Abandon individual stocks! Invest in the index!
For those who invest in options and futures, counter market operations, if wrong! It may not only be [broken to pieces] but also [family destroyed]. Don't be careful!
Overcome fear and operate against the market!
Date of writing: June 20, 2016
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