Especially for investors. Because of the weakness of human nature-greed, luck, paranoia, etc. People are often carried away in the face of interests and cannot make rational choices.
There is a very classic saying in the investment community-"You will never make money beyond your cognitive ability." Even if you earn for a while, you will probably lose them soon, because they don't belong to you.
As Warren Buffett's business partner Charles Munger likes to say, "The surest way to get what you want is to make yourself worthy of it."
To be a truly wise investor, you must remember that using the experience and skills in this book to make money is only a means, not an end.
Speaking of using the experience and skills in the book, this is indeed a very clever choice.
Because the experience and lessons gained by others with time and money are enough to make you take a lot of detours less.
However, after all, other people's experiences are other people's experiences. How to use it flexibly, especially for me, is the key.
I quite agree with Charles Munger's point of view: don't be restricted by disciplines, read a little about everything, be knowledgeable, and learn more about psychology, philosophy, history, physics and mathematics ...
Multidisciplinary deepening will broaden your horizons and make your thinking more flexible and comprehensive.
Moreover, no matter what we do, it is very important to have a clear position for ourselves, especially when we are going to contact a new field.
But when we evaluate ourselves, there are often deviations, and there is a "law of control illusion" in psychology.
For very accidental things, people think they can control them by their own ability. This illusion does not conform to the characteristics of their own wrong perception. It is not an illusion, and it is different from imagination.
This illusion is because our daily life can be dominated by our own abilities, so people extend this illusion to accidental events.
An important feature of the market is uncertainty, and uncertainty is a key to bring anxiety and pressure.
A simple example is: if you have a watch, you can get an accurate time, but when you have two watches with different times, you may have complex emotions, which are caused by uncertainty.
The market is unpredictable, and there will be countless situations. As far as we are concerned, the market always seems to be against us, and it always "falls as soon as it is bought, and rises as soon as it is sold".
What's going on here? Am I the only one who can recite this?
Psychologist Daniel? Kahneman believes that there are two factors at work when people think, which are described as system 1 and system 2 respectively.
System 1: The operation is unconscious, the speed is high, and it is completely in the autonomous control state, so it cannot be turned off.
System 2: Attention needs to be transferred to activities that require mental work, and its operation is usually associated with subjective experiences such as behavior, choice and concentration.
Simply put, the system 1 is the function we see before our eyes. For example, if a car comes, we will instinctively realize the danger and then avoid it. It is also the function of the system 1 to want to buy when the product value rises.
We need a certain thinking process, for example, solving a complex high-number problem mainly requires the participation of system 2.
When the market falls, it will make us more cautious, and it will also make us a little anxious and flustered. The participation of system 2 may make us unable to make a decision for a while, thus missing some good selling points.
We need to know more about the operating rules of our own thinking and avoid being constantly driven by our own instincts. Of course, knowing this will not make you much profit in the market, but will only avoid more losses.
Market sentiment is also a very important aspect. How many people and how much money participate will affect the value of products in the market. This is an era of real interaction.
It is also important to pay attention to when you are emotional and when you can be objective and calm.
No one can always predict the direction of the market completely and accurately, even the investment master is no exception. However, we always feel that we can grasp and win. Think how sad it is.
Even Jesse Livermore, who owns the stock market, couldn't help but commit suicide.
1940165438+10 In October, Jesse Livermore wrote a letter to his wife after getting drunk in a Manhattan restaurant. The letter ends with the following sentence: My life is a failure.
Then Livermore killed himself with a pistol in the hotel cloakroom.
It is said that he left less than $65,438+0,000.
A person who has experienced several ups and downs in the stock and futures markets has earned tens of millions of dollars and lost more wealth than that.
Legends who have created one classic trading myth after another. A master trader who wrote such classic speculative works as Memoirs of a Stock Trader and Masterpieces of Stock Trading took a curtain call …
Reason, reason, reason! Always keep your rationality in the investment market! So as not to go down the road of no return.
It is sometimes difficult to make a reasonable choice between rationality and sensibility, but it is not impossible. Try to practice the investment principle, always remind yourself and abide by it, so as not to be swallowed up by the stock market.