In the face of fluctuations, we must first realize that the market itself is composed of "ups" and "downs", so fluctuations are the normal state of the market, just like day and night. Therefore, as long as you are in the market, volatility is like a shadow, but it is easy to ignore when it goes up. For example, 2020 is a good year to make money, but the Shanghai Composite Index also fell 1 12 days in 243 trading days, accounting for nearly 50%. Unexpected?

So fluctuations always exist, but when we fall, our emotions will amplify the impact of fluctuations, and "heartbeat" will affect our perception of "fluctuations". Emotion is also one of the important factors that affect our profitability in the market. Buffett's teacher Graham once pointed out: No matter how successful you are in math and finance, if you can't control your emotions, you can't make a profit in the investment process.

02. Fluctuation is one of the sources of income. Imagine a stock today 10 yuan, tomorrow 10 yuan and the day after tomorrow 10 yuan. If there is no fluctuation, will everyone buy it? Certainly not, because there is no possibility of profit. Therefore, fluctuation is also one of the sources of income, and investment opportunities are often bred in fluctuation.

In fact, if you want to make money in the market, you need to understand fluctuations correctly. Buffett once said, "For real investors, the real significance of price fluctuation is to provide investors with buying opportunities when the price is significantly lower than the intrinsic value, and believe that the market trend will pick up; When the price rises sharply above the intrinsic value, it provides investors with the opportunity to sell, believing that the market price will return to value. At other times, if you forget about the stock market and focus on dividend income and company operations, you will do better. "