My understanding of the investment process: the way to fight anxiety is "long-term thinking"
The articles I have written in recent days are all related to Buffett and value investment. I also said in the article that my own investment is also operated in the form of value investment. In addition to digital currency, my investment field also includes precious metals and stocks (accurately, A shares), and in all these fields, I invest in long-term holdings.
This was not the case when I first entered the investment field more than ten years ago. At that time, I was obsessed with short-term operations like almost all novice investors.
The first market I entered at the time was A shares. At that time, when I saw a decline, I thought that the outlook was pessimistic, and I had to cut the meat; when I saw a rise, I was excited and chased high; once I bought it, I always remembered the trend of the disk, and the whole person ’s mood and rhythm were completely taken by the market. The trend leads.
After such a period of time, I felt exhausted and overwhelmed, so I closed my hand and stopped touching the stock market in the short term, and began to reflect on my own behaviors.
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During that time, I bought a lot of books on technical analysis. I also have strong mathematical skills. I do n’t understand the mathematical principles behind the indicators in technical analysis at all, but I finished reading those technical analyses. I always felt something wrong in my heart.
If the technical analysis is so smart, then I only need one computer to compile all the indicators into the software, and can I buy or sell according to the indicators? If so, why did so many market softwares that were already on the market at that time not allow investors to become rich?
Later, I started to try some market software and many technical indicators, and it turned out that from time to time it would appear at a certain point, and the buy and sell signals given by different technical indicators were opposite. At this time, I realized that even with the technical indicators, people still have to judge .
But people will be affected by emotions when making judgments, and may make opposite judgments about the same point when they are emotionally upset and depressed.
So how can we rule out our irrational emotions and make rational judgments in investment? At this time, I happened to see Buffett's book, which fully introduced my decades of experience and lessons. Since then, my thoughts have undergone tremendous changes. I have tried to control my hands, watch more and move less, start to restrain my urges, and learn to endure.
After persisting for a while like this, my life began to change. I no longer be influenced by the market, but started to use the market to lay out my investment. At the same time, I also began to observe the sentient beings in the investment market and saw what happened to me The emotions and anxiety in the body also happened to almost every investor.
When I observe others from the perspective of a bystander and reflect on myself, I have a better understanding of investment. In the process, I gradually formed today's investment methods and investment philosophy. So I very much agree with Buffett's investment philosophy and have been practicing it.
In the past two days, a reader left a message saying that Buffett is not optimistic about bitcoin. This is indeed the case, but it does not mean that his investment concept cannot be used for digital currency investment. I think his concept is also applicable in this field and is very effective.
Readers also asked how long the long-term investment is. In my opinion, the so-called long-term short is 1-2 years, the long is more than 5 years. Some friends may think that this time point is too long, and I am afraid that after waiting so long, it will waste time and money without results.
In fact, based on my investment experience, in the past 10 years of A-share investment, I used this period as a cycle, and in A shares, I have no losses, only profits. I have different opinions on A shares and many people. I think it is not difficult to make money in A shares.
Some readers also commented on whether there will be a bull market in this round. I think this is entirely possible. At present, all views on the bull market are speculations, and whether there is a bull market can only be proved by time. I wrote an article last year, warning everyone that if we encounter extreme situations: no bull market in 5 years, what should we do?
But now it seems that as investors, we must think more and more carefully about the possibility of such extreme situations. What if this is the case? Then at least make sure not to use gambling mentality to make investment, copy short-term and so on. In the case of insufficient bullets, it is necessary to plan carefully and strive for each bullet to be used on the blade.
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