Investor's Worst Enemy

Psychological factors during investment are often the worst enemy of investors. To solve problems, you must understand yourself. The following is a collection of some common mentality problems. It is recommended to spend a little time reading.

One: Missing Fear
It is the FOMO sentiment that we often talk about. Seeing the booming stocks, we can’t wait to enter the market and feel that we have to buy it.
Once this emotion occurs, it means that you don’t understand the underlying factors at all, don’t understand why it rises, and it’s easier to sell when it falls.

Take time to understand the factors behind the rise and fall of the stock, and control your bet until you can accept the volatility and denomination, so that you can avoid making mistakes due to emotional influences when you are fluctuating.

Two: Know your own strategy
Everyone is in the same market, but the actual participation strategy is different: everyone buys and sells the same batch of companies, reads the same news and quotations, and talks about similar topics. However, the time frame of operation has changed from the same day to short speculation. There are strategies to invest in ten years. Although everyone thinks that they are in the same game, such as stock picking, each participant has a different goal and risk tolerance.

But most of the debate on investment is not really any objection, but that the two sides are not in the same game. Investors must be aware of this, otherwise it will be easy to be affected by the opinions of market participants in other time frames, and get lost.

When the world changes, some things will be eliminated forever. All industries have cycles, some eventually disappear, and some make a comeback.

Patience is important, but it should not be blindly applied to all situations. It must be balanced between faith and flexibility. The economic environment often changes; it is best to keep only a few as beliefs, and the rest are ready to change with the environment at any time.

Finally, I would like to talk about the doubts that I often see investors:
The stock has risen a lot, but there is no position but I dare not chase in
The stock has fallen a lot, and holding losses feel that we should wait for a recovery