Do you have an illusion that people who trade stocks and invest seem to make money very easily?
Just by tapping on the keyboard, buying and selling, money seems to be earned effortlessly.
Many people also enter the investment circle with this dream, only to be cut down to the ground like leeks.
Stock trading is far from as easy as everyone thinks.
You should ask yourself a question: there are so many professionals in the market who spend 12-16 hours a day studying investments, and they may not even make money. What makes you think you can make money by being sporadic and inconsistent?
In the market of competition, everyone is plundering each other.
Advertisement
Before you think about making money from others, think about what makes you able to make money.
Otherwise, shouting slogans to make money and making senseless trades will not make you rich.
Understand this big truth first, and then strive to make yourself smarter than others, and it is still possible to make money.The terrifying aspect of the investment market is that you don't know who your opponents are.
Take stocks, for example. You have no idea who you are buying from and selling to.
Are they retail investors or major players?
Those who are investing with hundreds of millions, or even billions, are sitting in front of their screens, playing a game of chess with you.
Not only do they have more capital than you, but they also have access to first-hand information and a deeper understanding of policies.
Winning against them is almost impossible, with the odds of winning being slim.
What to do if you can't win? Try to join them, don't be their opponent, try to be their friend.
Learn to be friends with the major players, be good at discovering their traces in the market. Wherever the major players are, that's where you should go.
Where there is a large amount of capital in the market, that's where you should hang out. There must be the presence of major players, and there is a possibility of making money.
In the stock market, you need to learn to turn enemies into friends.Follow the trends made by large capital.
If the large capital makes a mistake and causes you to lose money, it is understandable, do not complain, it is a market issue. But if you go against the trend and act independently, going in the opposite direction of large capital, then your loss is a problem of your cognition.
Better to die with fragrance in the branches than to be blown away by the north wind.
Those who go with the trend have mostly made money in the actual combat, at least they have tasted the soup distributed by the main force.
The market has many rules, but it takes time and energy to study.
In any industry, if you want to succeed, you must go through the 10,000-hour rule.
Otherwise, you don't even have the qualification to say you are an apprentice.
Some people will refute, thinking they are smarter than others, more talented, and learn faster.
The ups and downs of the market need to be experienced, only after a complete bull and bear cycle can you have the qualification to be an apprentice.Some have just gone through a small cycle, made a little money in a mini-bull market, and thought they had mastered the knack of stock trading.
When the next bear market cycle comes, the outcome will definitely be miserable.
A big shot who started with only 600,000 and ended up with 40 million told me this.
Once, he took 2 million to trade stocks, traded up to 5 million, and then closed all his businesses, feeling that he was about to reach the peak of life.
When it fell all the way back to 600,000, he realized his insignificance.
He studied hard for two and a half years, big cycles, small cycles, all kinds of economic laws, and then started to make a real stable profit.
It took another 8 years to achieve a 60-fold increase. This big cycle has been fifteen years.
From the self-thought of making easy money, to the day and night study and research, from making money by luck, buying stocks by listening to the news, he has become an industry insider with a stock selection system and precise grasp of buying and selling points.
Just his own trading notes, piled up, could be one or two meters high.
He insists on looking at the K-line chart of all the daily limit stocks every day, analyzing the fundamentals of the continuous rising stocks, sitting in front of the computer for at least 2-3 hours after the market, and the effort he put into the investment, you can't see it at all.Do you think that lazy people can succeed in the market?
Obviously, it is impossible, and the gap between them and those professional investors will widen more and more.
The essence of investment is actually the accumulation of experience and capital, and there is no shortcut.
No matter how fast you learn, the market experience is just like this, a complete cycle still requires many years.
So, in theory, there is indeed no so-called shortcut.
As a qualified investor, you must do several things every day.
First, review the market.
It is not said that a qualified investor must watch the market every day, but you must review the market every day.
What happened in the market can be known afterwards, but it is not allowed to be unknown.Reviewing the game is truly very important and absolutely necessary.
The game may be filled with emotional factors, but after the game, one can analyze more calmly and objectively to understand the changes in the market.
Of course, reviewing the game is not just a general market review.
For the stocks you hold and the stocks you pay special attention to, what happened that day, whether there were any obvious changes, you must take a look to avoid missing important information.
The market changes every day, and investors also need to understand and keep up with the overall changes in the market.
Second, hot spot research.
In addition to reviewing the game, one should be particularly sensitive to industry information.
Especially for hot spots, or popular sectors, in-depth interpretation is needed.
Hot spots are often places where capital gathers, and what exactly are these funds chasing the hot spots for.
The money-making effect is one aspect, but what is the deep underlying reason behind it.Because there are some hot spots that will become major trends in the future, leading the direction of the entire market.
These major trend opportunities, as a qualified investor, must be constantly paid attention to.
Third, experience summary.
Experience summary, it is best to take notes.
Experience can be personal experience, or it can be learned through communication with others.
Personal experience is mainly about trading, buying and selling, summarizing what was bought right, what was bought wrong, what was sold right, and what was sold wrong.
The more complete the analysis and recording of the trading mentality and the market conditions at the time, the greater the help.
One's own trading experience is actually very helpful for future transactions, especially some wrong experiences, the pitfalls that have been stepped on, and those that can be avoided in the future should be avoided.
Of course, we can also learn some other people's experiences by communicating with experts.
Those successful investors must have some very valuable experience to learn, but it needs to be digested reasonably and take the essence.The above three points can be said to be daily essential tasks. If for some reason they are missed, they must be made up in a timely manner on the weekend.
Two hours a day amounts to only 730 hours a year, and it takes 14 years to accumulate 10,000 hours.
In front of a market with a value of 80 trillion, investors really do seem very small.
If you want to become one of the few successful people and treat the market as an ATM, what you rely on is your understanding of the market and the accumulation of experience. Only by surpassing your peers can you achieve success.
In the stock circle, drinking chicken soup is only the first step. Everyone can talk about big principles, but what really needs to be done is to integrate knowledge and action, and to execute properly.