Work instead of being a boss

Chapter 25 Risk Prevention (3)
There are a few common characteristics of losing traders: For example, these traders are often very nervous, have a tendency to be pessimistic, and always blame others when things go bad.In addition, these traders also tend to follow the herd, become discouraged when they encounter setbacks, and rarely establish a set of rules that must be followed.

Through the psychological inductive analysis of some successful investors, there are often some common characteristics among them.These characteristics boil down to:

Very interested in the market and how it works. And this love is not just because the market provides opportunities to make a fortune, but because of the dedication to work and the challenges that come with it.In fact, anyone who puts too much emphasis on making money is likely to be destroyed by this desire.Such intense emotion must override any attempt to maintain objectivity.Once an investor is aware of this situation, it is wise to consider overcoming this natural urge to invest or trade with a small amount of money first on a smaller scale.We will be in a more progressive position only when we come to appreciate the challenges the market presents in its own way.

It is a loner that the particularity of the securities market determines that successful investors always demand a position that is contrary to the majority, or contrary to the consensus view of the majority in the market.Of course, it is not enough to be a loner in order to buy low and sell high, they must also be creative, imaginative independent thinkers.

Have your own investment philosophy Although "all roads lead to Rome", but the starting point is different.When examining the trading and investing methods followed by successful investors, it is not difficult to find that their goal accumulation is the same, but the paths to reach their goals are very different.In actual investment, no matter which method an investor adopts, as long as it works well and feels convenient to use.Establishing a set of correct investment concepts and truly applying them in investment practice is what makes successful investors surpass ordinary people.

Self-discipline and patience are also important for the general investing public, but they are difficult to achieve in practice.Self-discipline means that you can still stick to your own investment principles in the face of ever-changing markets.It is easy to achieve this in the short term, but the difficult thing is to be able to always exercise self-control and not be swayed by temporary temptations in a market full of variables.Self-discipline also means reducing emotional impulses and not blindly chasing ups and downs in the market.

A successful investor is also a patient person. A successful market investor will not trade for the sake of trading, invest for the sake of investing, and will not invest just for money.They often spend more time on research than trading. When the ideal time does not appear, they can wait patiently and take immediate action once the time is right.

A successful investor is also a realist.Usually, when a market investor takes a certain position, he will be influenced by the market, even if the conditions of the market have changed, he will stick to it.Successful investors, however, are different because they are realists.When market conditions change and the reasons for their previous position no longer exist, they are quick to recognize this and quickly change their position to accommodate the change in the market.They know full well that if they stick to their old positions, it may lead to loss and pain.

In the securities market, it is truly "a man who knows the current affairs is a hero".This often also means that investors must strictly follow the trading principle of "minimizing losses as much as possible".For most investors, failing to admit when an investment does sour, they cling to the false hope that things will turn around.For example, when the price of a stock they invest in keeps falling, they will look forward to a rebound, and they will find a lot of reasons for themselves to stick to their original position, such as facing bonuses and dividends.In fact, you should ask yourself more at this time: "If you still have funds, will you still buy this stock?"

There is an ability to think ahead and predict. They seem to have an extraordinary sixth sense and can mentally rehearse things before they happen.Therefore, when the investing public generally believes that the mainstream trend of market prices will continue based on the existing conditions, these great investors have already smelled the clues that the mainstream trend of the market will reverse in advance and acted accordingly.The problem is not that they are much smarter than ordinary investors, or that they have superhuman insights, etc., but that in their long-term investment practice, they constantly summarize the experience of success and failure, and can be well-trained to find out from the immediate market trend. The problem is that when mentally rehearsing future events, all possible events are considered and improbable events are discarded.As a result, they are able to adapt quickly and take the most advantageous position should market conditions change.

The profitability and risk of investment are interrelated. Generally, the higher the profit of the investment, the greater the corresponding risk; but often the higher risk is often accompanied by a greater rate of return.Between gains and losses, how to judge and predict depends on the investor's mentality.

Of course, everyone hopes to obtain the highest benefit and avoid crisis in every investment process, to be able to win by surprise and always win undefeated.To achieve the ideal goal, there are the following principles:

Don't put all the banknotes in the same pocket When you start to implement your own investment plan, don't bet all your funds on the same commodity, or items of the same nature.Funds can be dispersed, so that risks can be dispersed and losses can be avoided.This is the safest investment rule.

Don't follow your feelings. In the investment market, there will often be some kind of "investment fever", what is the most popular during this period, and what is the most sought-after during that period and other market trends.As long as there is such an upsurge, in the short term, there must be a certain amount of funds gathered without stagnation.At this time, investors can invest boldly along the trend, and must not go against the opposite direction based on their own feelings.

Borrowing the wisdom and experience of others, a "newborn calf" who has just joined the investment market will inevitably be at a loss when faced with a variety of investment channels and investment skills. What's more, the investment products in the world are becoming more and more diverse, and the quick acquisition of information is also difficult. It is beyond the reach of ordinary investors.

Therefore, it is undoubtedly difficult to gain a foothold in the investment market relying on personal strength.It may be safer and more reliable to entrust the funds to specialized institutions and talents to make decisions and handle them on their behalf than to rush in by yourself.

Invest in real estate, find a good location Real estate itself has the functions of investment, self-use and leasing. Therefore, choosing a good location carefully is often the key to obtaining a good return.Such as urban centers with convenient transportation, business districts and shopping districts with high population flow, popular tourist districts, government economic development districts and key engineering districts...all are very attractive and ideal locations for real estate investment.

Knowledge is the weathervane When a certain craze in the investment market begins to fade, some people think that the opportunity is not lost, and quickly catch up with the receding pace of the craze to make a fortune.Although the profits that can be obtained at this time are still very limited, this is a rare opportunity after all.If you want to earn high profits, you must be able to grasp and control the market trend before the upsurge is formed.This ability to predict is directly related to the initial investment in relevant knowledge and information equipment.Sometimes knowledge leads the way.

The profit brought by each investment behavior is proportional to the risk, and there must be high risk behind high profit; relatively speaking, high-risk investment can generally bring high profit.Therefore, investors must not overload the investment in the proportion of high-risk investment when the funds are not abundant, so as to ensure the safety of investment.

Regardless of whether you are about to invest in or have already invested in the investment market, you must not forget to measure whether you allow a large amount of capital to invest in a certain project at any time, and be vigilant at all times not to wander on the verge of exhaustion.The most taboo thing about investing is to plant one head in regardless of the consequences. This is a dangerous investment behavior.Therefore, any investor should have a plan, a goal, and be a successful investor with a well-thought-out plan and ease of use.

survival and development

The birthdays of the rich suddenly became the subject of much media coverage.South Korea's "Central Daily" conducted a serious survey, saying that [-]% of the top [-] richest men in South Korea were born in winter; about [-]% of the [-] richest men were born in winter, including "Samsung" founder Li Bingzhe and "Hyundai" Founder Zheng Zhouyong.The article also said that not only South Korea, more than [-] of the [-] self-made young billionaires in the United States were born in winter.

Whether people born in winter are more likely to get rich is just an entertainment version of the content; but whether the severe winter of the economy is a suitable season for starting a business is a topic worthy of serious discussion.Which point in the economic cycle is more suitable for starting a business?In the past two years, global economic growth has slowed down. Some industries, such as communications and IT, and some regions, such as Germany and Japan, have fallen into the long winter of the economic cycle. The confidence of manufacturers and consumers has declined, investors have become more cautious, and bankruptcies and mergers have increased. , the number and velocity of new business establishments decrease.Cao Renchao, a well-known stock market analyst in Hong Kong, offered the "three happy elders" during the economic austerity period for the discouraged people: stick to their laurels, wives, and old friends-it seems that the economic winter is indeed not suitable for starting a business.

However, there are also studies that show that many of the world's top [-] companies were founded precisely during the economic downturn in history.Many people are studying the mystery of the rise of Samsung and other Korean companies against the economic winter. I always feel that there is one factor that has been overlooked by everyone, that is, in the past five years, Korean folks have been vigorous and vigorous in the fields of entertainment and Internet creativity. Entrepreneurial boom.The rise of Samsung's mobile phone is largely a victory of fashion, and Samsung's ability to lead the fashion trend largely depends on the creative design of the Korean start-up private company behind it, which is derived from the "Korean wave" that is popular in Asia.It is an exaggeration to say that if there is no younger generation to start businesses against the market and support the entertainment and creative industry with youthful blood, the winter of South Korea's manufacturing industry may be even more severe.These companies founded against the market may also have a profound impact on the traditional Korean corporate philosophy: they are small and beautiful, no longer large and comprehensive; they are private capital and no longer "eggs" laid by the state or financial groups; They are lightweight and creative future enterprises.

The situation in China is quite different.Most of China's enterprises were founded in the period of economic expansion or the spring of policy. In the [-] years of enterprise history, we can see the obvious "birthmark": after the urban economic reform in [-], a number of enterprises were established; A number of new economy companies have been founded - every wave of entrepreneurship appears in the spring of economic or policy.The reason is very simple: In China, the policy cycle is largely the economic cycle. Whether the government encourages or not directly determines business registration, bank loans, listing indicators, personnel accounts, tax incentives, etc., and thus directly determines Entrepreneurial enthusiasm.Liu Chuanzhi has a "hatching egg theory": In fact, Chinese enterprises are mainly "eggs laid by policies", which grow in spring and hatch when they are hot.

Not only start a business in the spring, but also expand in the spring.Zhang Ruimin believes that Haier will pursue diversification after the [-]th National Congress of the Communist Party of China, internationalization after the [-]th National Congress of the Communist Party of China, and comprehensive innovation after the [-]th National Congress of the Communist Party of China—Chinese companies are very good at capturing business opportunities in the political climate.

There is a question: Is there any difference between a company born in spring and a company born in winter?Generally speaking, in spring, enterprises have higher requirements and relevance to the environment; in winter, enterprises may rely more on their own viability.The former is good at development, while the latter is good at survival.

It cannot be regarded as a mature enterprise without going through the test of trough once or twice.The huge losses and problems exposed by those famous big companies after the founders left made people suddenly vigilant.The journey is smooth, every step is fast, and the enterprise expands very quickly, but it is a common problem for Chinese enterprises to capsize when a storm hits.Besides, the cycle of domestic policy and environment is slowly giving way to the cycle of the economy (Asia and even the world) itself.Therefore, if you are born in spring, you have to perceive winter even more.

(End of this chapter)