Many people have the intelligence required to analyze data, but few are able to see things more deeply and withstand the huge psychological impact.

In other words, many people will arrive at similar cognitive conclusions through analysis, but the actions they take based on these conclusions will differ because of the different psychological influences they suffer.

The biggest investment mistakes come not from information factors or analytical factors, but from psychological factors.

The first psychological factor: the desire for money, especially when this desire turns into greed.

Greed is an extremely powerful force.

It is powerful enough to override common sense, risk aversion, caution, logic, painful memories of past lessons, determination, fear, and all the other elements that might keep investors away from trouble.

On the contrary, greed often drives investors to join the profit-seeking crowd and ultimately pay the price.

I remember that at the end of 2015, not long after I started working, I became interested in online lottery because I wanted to make money.

I remember that I only played with a few hundred yuan in the beginning. In the beginning, the daily income ranged from tens to a hundred yuan.

Although it wasn’t much, in my opinion at the time, it was indeed a windfall that was very rewarding besides work.

Driven by the pursuit of profit, I took out the several thousand yuan I had saved as a bet. After that, my daily income was able to reach several hundred yuan.

For a moment, the excitement was beyond words.

I remember playing the lottery in an Internet cafe. While playing, I looked at the cleaning lady who was doing cleaning work in the Internet cafe. I thought that she couldn’t make much money in a day because she was so tired. Why don’t you look at me and just bet a few dollars online?

In just a few hours, you can earn excess profits.

However, the good times did not last long, probably after a month or two, I lost all my investment including principal and interest.

However, at this time, I did not stop at the cliff, but I was carried away and took out my credit card for a loan.

I think that this kind of investment method is feasible and effective. As long as I spend enough capital, I can not only win back the part I lost, but also win more.

That's it, I won and lost again and again, and it lasted for more than three years.

In these three years, I lost all my savings, not all at once, but driven by greed again and again.

During my loss-making career for more than three years, do you think I have failed to make common sense judgment?

You'd think I wouldn't be more cautious?

Do you think I have forgotten the painful lesson of losing all my money last time?

Do you think I've forgotten the fear I had before losing my money the last time?

I can tell you with certainty that I have done these feelings, or these psychological constructions, but I was really obsessed with the word greed and made the same mistakes again and again.

The depth of pain and despair over the past three years are still vivid in my mind when I think about it.

The second psychological factor: fear.

In the world of investing, the term does not connote rational, intelligent risk aversion.

On the contrary, fear, like greed, implies excess.

So fear is more like panic.

Fear is excessive worry that prevents investors from taking the positive actions they should take.

The third psychological factor: People tend to give up logic, history and norms easily.

This tendency makes people willing to accept any suggestion that will make them rich... as long as it makes sense.

We can get a glimpse of this by looking at current advertising.

Have you ever seen such advertisements, such as "playing xxx, it is better to learn xxx, you can make money", or "if you are unemployed at home, take the xxx exam, the current gap is large and the prospects are good", or "part-time jobs are now available"

It has become a necessity and you are still working hard, don’t hesitate, join in quickly”... Ads such as this all take advantage of people’s desire to get rich, and make up a set of logic that can be said

Pass reason.

But there are still many people who will sign up and give it a try.

Not to mention the value of learning these things, if you think about it from the perspective of investors, it is obvious that these people who pay tuition have been "cut off a handful of leeks."

Because there is no free lunch in the world, and similarly, there is no inevitable success in the world.

Advertising will always use some vague words to paint you a beautiful and bright future, but in fact, there will always be only a small number of people who can ultimately achieve the scenes they depict.

So, friends who want to invest in this area, you should think clearly in advance. Is this really the direction I want to develop in the future?

Am I really emotionally interested in these things?

Can I persevere and do these things?

…These are all issues that we need to consider.

The fourth psychological factor: herd mentality. Herd mentality means that you will not stick to your point of view even if there is obvious absurdity in the group's offer.