Chapter 42 [The Market is the Best Teacher!]

Source:https://www.facebook.com/100063294665283/posts/596021502517667/

[James Origins and Today] Chapter 42 - The Market is the Best Teacher! (06/13/2023)

In the investment market, there are a lot of people who will predict the market, there are a lot of well-meaning people who will tell you that now the market is going to fall again, it will continue to fall, it will fall to the floor, and then there will be the basement, and there will be 18 floors underground. How panicked you are! But usually the louder that sounds, the closer the market is to the bottom (but, remember, we don't predict the market).

After the market had already plummeted, even Buffett began to say that the value of the US market had emerged. When Buffett had already begun to buy in, he would find these kind people, but the gods suddenly all emerged from the ground. He was confident that the market would fall again, and there was a chance that it would fall again or make you feel that the market would fall to zero. It was really terrible.

If you look at the past before each big rally, all the media, analysts and stock groups discuss and bearish comments, are very horrible, do not scare you to death.

If you are an investor who is not confident, you may sell all your stocks at a low because of such horrific rhetoric. This is how clever a good teacher the market is, teaching you not to act on market rhetoric.

When a lot of people are very kind and strongly predict that the market will continue to fall, it is recommended that you quickly clear your stocks, as if the end of the world is coming, with the past history, such a situation is not far from the bottom, but this is not a prediction.

Already down 30% and bears the market, predicting the market to fall another 50%, the market is so scared, the bottom of the market should be very close (we don't predict the market, we buy the index, we don't predict the market). So long-term investors, as long as there is money to buy. In such a market, you will doubt that you have money to buy, but the past few decades have proved that this is right. Whether you buy at the highest point in the market, the next 10, 20, or 30 years can also prove that long-term investors are right to buy at any time. No one knows where the market is now, nor will they know whether it will rise or fall in the next day, week, or month. Even if it has fallen in the past six months, you still can't know whether it will rise or fall tomorrow. Just as if you threw the copper plate 100 times are all positive, you will not know whether the next loss is positive or negative.

We said last week that there is only one situation you may need to operate, that is, you need funds to live your life, you will need to sell stocks, whenever you need money, whenever you want to sell (someone must have told us, why not look at the technical graphics, the average line or something, we will not, we can't do it well after learning, but it is worse if we can't do it well.), just as we suggested buying with money, many people have already given us great criticism and guidance, all the suggestions are good, but without a crystal ball, it can not be done, can only say thank you.

There is another situation that will need to be operated, that is, full position buying. When the market falls, I find that I am not a person who can buy full positions. Because full position buying, the downward pressure on the market is very large. Moreover, some people vow that once they say that they are very firm when the market begins to buy, they even buy three times the leverage. When the market falls to a certain extent, some people will be unable to persevere. Coupled with the horrific remarks of these well-meaning people in the market, they may eventually be killed. This is too confident at first that they can survive the market decline. The market will give you an experience. When such a situation occurs, you should know that you may not be a suitable investor for full position investment.

That's why I often suggest that different people have different ways of saving for emergencies and cash flow. For some people, setting aside a little cash can be reassuring. It is important to have peace of mind when investing. The market is rising, there are positions to make money, the market is falling, and there is cash. Cash does not have to be bought, it is to keep peace of mind. Cash flow is like air, everyone has to have it to get through the tunnel.

In order to succeed in the market, we must reach the point of faith, so that we will not be tempted by demons and ghosts to "hear, know, understand, believe, perform, firmly believe, endure, and believe."

"Quotes are always born in despair: growing up in half faith, half doubt, matured in the pursuit of vision, destroyed in the fervor of hope.” What stage do you think the market is at right now.

For long-term investors, it is actually not so important at what stage to buy long-term investors who have been holding on for a long time. Long-term investors are able to survive the spring, summer, autumn and winter of the market, and can also spend 10 or 20 years in the market. This is the investment method of the Zhuo Ke market, and it is also something that ordinary people can do.

Ordinary people can't do it, just listen. We first admit that we are ordinary people, we do ordinary things, predict and operate this thing, and then leave it to the man of God to do it.