[Why are many people destined not to make big money in the investment field? ]
1. Many people make money not by cognitive rationality, but by market sentiment and personal emotions.
Market downturn - Extreme pessimism - Selling the target - Lower price - Worse market - Vicious cycle
2. Extreme lack of patience, frequent short-term operations
Very susceptible to short-term fluctuations and frequent trading, frequent traders are destined to only make a little money, and it is difficult to make big money. Because patience is one of the keys to successful investment.
There is also a lack of sufficient experience in the market, no summary of experience, and trying to make money by blindly following the trend again and again
3. Lack of offensiveness to seize big opportunities, and no strong defensiveness; risk control is very important‼ ️
Nothing is certain: there is always a risk of causing you a major loss, even in the seemingly safest bets.
If you don’t have an offensive mind, you can’t make money, and if you don’t have a defensive mind, you can’t keep your money.
But if the risk is not controlled well, it will lead to the following results
On the one hand, you may often let your losses exceed the acceptable limit! This kind of operation and experience is very fatal, making people afraid of making mistakes.
Secondly, when the opportunity really comes, they are either timid, or stop after a brief taste, or try their hand at a small trial. They leave the table in a hurry after making a little money.
4. Timing is everything
If the timing is wrong, the efforts will be in vain, and even counterproductive.
The timing of entry is very important. If you enter the market at the end of the bull market, the price you buy is the price of hormone fattening. At the end of the bear market, the price you buy is the price of skinny and hungry.
What if it is wrong?
Don't rush to seek medical treatment, wait for the next right time. Simplicity has great power. Don't make everything complicated
Understand the cycle, identify the cycle, grasp the cycle. Compared with the trend, the cycle should be paid more attention to by everyone;
Pay attention to the economic cycle, the alternation of bull and bear; just like the emergence of summer, autumn and winter, it is inevitable.
To sum up, if a person wants to make a lot of money, he must first know how to go with the flow, and choosing the right time is very important. Secondly, he should reduce the frequency of transactions in daily transactions, maintain a high degree of patience and concentration, and do a good job of risk control‼ ️
