Chapter 61 [There is no problem with long-term investment, the problem is the cognitive error of investment quality]

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[James Origin and Today] Chapter 60 - There is no problem with long-term investment, the problem is the cognitive error of investment quality (08/31/2023)

Many investors hear our long-term investment theory and think it is very correct. They make up their minds to be long-term investors. Whether they buy in batches or listen to our advice and go all-in in a single transaction, when the market rises, they all think how wise and smart they are. Think of the bulls in the market as your own ingenuity.

However, if the market falls and you start to make small losses, you can still stick to long-term investment. However, when the loss reaches 20%, you will start to get nervous, unable to eat or sleep. When the market continues to fall, you will start to panic. Some people will start to blame things. If they make mistakes, it is not their fault.

In the end, some people can't help but sell at a relatively low point in the market, and then leave the market forever. The market has nothing to do with them (this is the fate of retail investors), and of course wealth has nothing to do with them. This is a question of the investment quality of investors. They are brave at the beginning, but in the end they realize that they cannot withstand the fluctuations of the market.

Long-term investment will make you rich, but it has not changed due to market fluctuations. Long-term investment is investment for more than 20 years, not half a year or ten months. This is what long-term investors need to understand, instead of waiting until the market falls to find out that they cannot withstand the market decline. This is a question in your own mind. Long-term investment will always make you rich, which is correct. It’s just that you don’t recognize that the market can drop 30% 50% or more.