I see that retail investors have unstable emotions, too concerned about the past, worried about the future, and feel fear about what lies ahead, fearing they won’t get a share of the profits.
But in reality, it is unrealistic to clarify the future in just a sentence or two, because the future is vast, and we are still young.
Before going out to sea, fishermen also do not know where the fish are, they could be in deep waters or shallow waters, but they still choose to go out to sea. This is a mindset.
How to fish in deep waters and how to fish in shallow waters is the method.
First, have the correct mindset, then have the correct method.
Essentially, it involves solving problems through projective thinking. The way is to reduce variables and increase constants to solve problems.
Therefore, it is necessary to clearly identify which are variables and which are constants, to reduce variables as much as possible and increase constants, to spread trends, to allocate production to households, to identify which variables affect which content, and whether they can be replaced by constants. The side with more constants and fewer variables will have a greater chance of winning. The more variables, the more uncontrollable the risks, and the greater the need to maintain a safe distance.
Retail investors struggle within their own hearts, with a big fist-sized heart that cannot let go of the distant desires.