Before the festival, many friends began to sell. Because they have a premonition that the market is going to fall, and their reasons are that there are too many profit takings in the current market, technical gaps need to be filled, and the stock market needs to adjust after the festival, etc. These reasons can be summed up in one point – they think the market is going to fall.
I didn’t sell any positions, not at all . Why am I not selling? I think the short-term market is unpredictable, and I may make a mistake in selling high and buying low at the moment. Even if I do it right this time, it doesn’t make much sense. Because this will make me develop a fluke mentality, and there will inevitably be the next “sell high and buy low” in the future. If this kind of selling high and buying low continues, sooner or later the stock will be sold out. It is doomed!
To do long-term investment, you must reject the temptation of this “small bargain” of price difference. In fact, I also want to play the price difference, but I know that compared to the cheaper price obtained by “playing the price difference”, the price of losing bullish stocks is too high. I usually only reduce my position when the bull market is at the top. For example, I will completely clear my position at 4,700 points in 2015, and reduce my position by more than half in early 2021. My frequency of lightening up positions is very low, so I don’t sell them easily. Because, I understand that the most important thing in stock investment is that you have to own stocks first. If the stocks are often out of your hands, what money can you make?
It’s like you’re waiting for someone very, very important. Do you wait for him at the date without moving, or go out for a walk, come back and wait? Isn’t it obvious which way is easier to wait for people and which way is more likely to lose opportunities?
Our stock investment is to achieve a major goal of doubling profits. I think it is worthwhile to give up the opportunity to hit the price difference in order to achieve this important goal 100%. Losing money is a blessing. If you are stupid in investment, you may earn more . If you are smart in the stock market, it will be difficult to end well after a long time.
For example, you sold liquor yesterday. Do you think liquor will drop sharply today or after the festival. However, can you really be 100% sure that baijiu will plummet after you sell it? You ask yourself, can you really guarantee that liquor will plummet? Even if the baijiu plummeted after you sold it this time, can you really guarantee that you will be able to do the right price difference in the future? Can you guarantee that you can pick it up in time after every throw?
Look in the mirror and ask yourself the truth. Do you really have the ability to sell high and buy low? If you think you have the ability to sell high and buy low with a high success rate, then why do you still want to make long-term investments? Why choose good stocks? You do short-term trading every day! Yes or no? We have to seriously question ourselves—whether we have the ability to guarantee the success of short-term assignments!
Many people know that they have the risk of not being able to buy back this kind of selling high and buying low, but they still want to sell high and buy low. The reason is the temptation of the price difference. This is the same as in life, small favors and small favors are very attractive to us, and it is difficult for human nature to be afraid of the temptation of small favors and small favors. But if we are obsessed with these small gains, it will be difficult for us to achieve great things.
People who like to play the price difference will let go of bull stocks sooner or later! People who like to take advantage of small advantages will suffer big losses sooner or later. This is true of life and investing. Many people hate riding a roller coaster when trading in stocks, but they don’t understand how it is possible to make a lot of money without riding a roller coaster? Sitting over the mountain and earning double are two sides of the same coin, they are one.
I didn’t realize until middle age that a roller coaster is a must. How many times has Buffett been on a roller coaster in the ten years since he held BYD? You can look at the K-line chart. But they ended up earning dozens of times. You play the price difference well, so let me ask you—can you guarantee dozens of times the profit on BYD?
If you could make a lot of money without riding a roller coaster, no one in the world would be stupid enough to ride a roller coaster. If the price difference can be hit frequently, and there is no risk of letting go of the big bull stocks, there will be no one in the world who does not make the price difference. Many people in the world overestimate their IQ and underestimate the abilities of others.
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