Recently, the stock market was in a downturn, and I remembered a problem I encountered when I read the book "Investment is the most important": how to understand the sentence "Investment is not the choice of the target, but the opportunity"?
Investment is a science, and choosing the object and timing of investment is not either one or the other. Goals and opportunities are indispensable and mutually causal.
Goals and opportunities run through the whole process of investment. In this process, investors' different choices of target and timing will lead to different results.
Even if the target is right, if the timing of buying or selling is wrong, such as buying high-quality investment products at a high price, or being forced to become a forced seller for various reasons, the investment will fail in a high probability.
If you choose the right time to buy, but choose the wrong target, no matter how hard you try, it will be useless, and you may even step on the thunder and lose everything. As people often say, it is more likely to lose money in a bull market. Choosing the wrong target is like going the wrong way, and you will never reach your destination, even if it is a good opportunity.
Choosing the wrong goal at the wrong time is tantamount to adding insult to injury and making it worse.
Choosing a good time to buy a good target and choosing a good time to leave the bag in time is like riding the wind and waves.
In a word, successful investment needs not only a good opportunity for investors, but also a good target. Regardless of the bull market and bear market, there will always be good opportunities and good targets.
Only by training a pair of discerning eyes, overcoming the weakness of human nature and choosing the right time and object can we enter the fast lane of investment and win the benefits beyond others.
Throughout history, those who performed best in the bull market could not continue to outperform the market.
Because the market is uncertain, this uncertainty is affected by the emotions of all individuals in the market, and all individuals in the market are affected by all the true and false information inside and outside the market. Under the trend of market uncertainty, there is no fixed standard that can make people continue to outperform the market.
Off-site influences, such as force majeure or sudden major negative news. On-the-spot influence, for example, when most individuals are influenced by emotions to form some investment knowledge, and this knowledge deviates from the knowledge of the master, the master is outnumbered, and no matter how powerful the master is, he can't win a strong market, even if he is right.
The best performer in the bull market can be called a master. The reason why they become masters is not only their superior personal ability, but also their luck, such as sitting on the tuyere.
Anyone can fly in the wind. Once the wind blows, it will be even worse if you can't land safely in time. Masters sometimes stumble, and once they miss, the loss is greater than ordinary people, because masters are usually more confident, and if they are too confident, they will cross the line.
Investment has boundaries, and investors need to keep trying to find the boundary that suits them best in order to survive safely in the market.
Those who perform best in the bull market, once they fail to keep their boundaries, can't continue to beat the market. For example, some people are carried away by short-term victories, misjudge the market and increase investment leverage. It is inevitable to be eliminated by the market, let alone to continue to outperform the market.
Jesse Livermore, the author of Memoirs of Stock Handwriting, is an example. Livermore, known as the greatest stock and futures speculator in the early 20th century, is the best among experts. However, in his speculative life, he went bankrupt four times. On one occasion, he was in debt for decades.
In a market full of uncertainty, even the best performers can't win for a while, and no one can continue to beat the market.