Five times a year is like crossing a river, which means that many people earn five times a year.
It means that it is not difficult to make huge profits in the short-term market. When I was young, I met a short-term investment expert who earned six or seven times a year.
At that time, newspapers and periodicals often reported his investment performance and publicized his magical investment technology. But a year later, there was no more report about him. It is said that his subsequent losses made the media lose interest in his follow-up reports.
When I was young, I also liked short-term hype. I often make a profit of 30% to 40% a month. At that time, I felt very powerful. I thought that if I went on like this, I could get rich quickly. But after many years, I found that I didn't make much money.
I have invested in the stock market for 24 years and found that people who make money quickly in a short time have the following characteristics:
1 is characterized by one or two stocks or a futures or even financing and lending. Only such a person can achieve amazing investment performance. Investment is full of uncertainty. It is undoubtedly a gamble to concentrate a lot of money on one or two stocks or one or two industries.
Such people are actually gambling. They made a big bet on a stock or an industry and finally got the right bet, so they will get amazing returns. Many retail investors, including star fund managers, invest in this way. This method is radical, and its essence is gambling. What is gambling? Gambling is to bet a big bet on something with a small probability of success.
But this gambling investment method is undoubtedly wrong, and we can draw a conclusion according to Kelly Company. Put all or more than half of the funds at a time. Those who are all up there, keep gambling. The probability of final loss is 100%.
Because this is doing something with a small probability of success, as long as it is done repeatedly, the final probability will realize its role. Investment is doomed to failure. Therefore, we will see that many short-term experts are short-lived, and many star managers are only red for a few years.
As long as most of the funds are put in one or two stocks or a limited number of industries, it is possible to obtain amazing investment performance, but this investment performance can only be short-term and unsustainable. In the long run, the performance is bound to be flat.
Therefore, this radical investment method is not desirable. That is, the investment strategy of "five times a year" is not a feasible investment strategy in the long run.
"The number of people who have doubled in five years is as few as the stars" means that those who have made long-term investments and can double in five years are excellent and very few.
Doubling in five years is definitely the annualized rate of return 10% or more. In the long run, such people are excellent investors. According to recent statistics, among the tens of thousands of equity funds in Shanghai and Shenzhen, only 100 can maintain the annualized rate of return of 10% for more than ten years, accounting for only 0.6% of all equity funds!
This is a steady investment method, and it must be a combination of investment and risk management, so as to make long-term and stable profits. This requires a deep understanding of the market, in order to resist the temptation of the market, in order to clear the mentality of quick success in the market. I usually read more market information in order to have a full understanding of the market. I usually watch the market on "One Futures", and you can also have a look. This profound understanding is slow and fast, and the real benefits are the benefits of controlling risks. There are very few in the market, even among professional investors, only a few can do it. This is a very high investment realm, because some people will say that it is as rare as the stars in the morning.
Hope to adopt!