Secondary market investment mentality management
In the secondary market, stock price fluctuations are like rivers, lakes and seas, sometimes calm as a mirror, sometimes turbulent. As Buffett said: "When others are greedy, I am afraid, and when others are afraid, I am greedy." This is a wise motto and the art of mentality.
In this market full of variables, investors often fall into the quagmire of emotions. They are like Ah Q in Lu Xun's works, sometimes shouting "We want to turn over", and sometimes falling into the lament that "the revolution has not yet succeeded." However, it is this emotional ups and downs that makes the market a psychological game.
When the market is prosperous and stock prices are rising, greed spreads like a plague. Investors scrambled for fear of missing this opportunity to get rich. At this time, as Lu Xun described: "People are like chicken blood, rosy, full of joy, thinking that they have picked up all the bargains in the world." But little do they know that this is a dangerous signal. Excessive greed will blind reason, lead to blind pursuit of high prices, and eventually fall into the abyss of bubble bursting.
On the contrary, when the market is bleak, stock prices are falling like autumn leaves, and fear is shrouded like haze. Investors are selling and fleeing this seemingly desperate land. At this time, the "spectator mentality" described by Lu Xun is revealed: "Everyone is watching, waiting, waiting for others to move first." But as Buffett said, this is the arrival of opportunity. Rational investors will remain calm in fear, go against the trend, and wait for spring to come.
Mentality management is particularly important in the secondary market. Lu Xun once said: "The infinite distance, countless people, are all related to me." This sentence also applies to investment. Every change in the mentality of an investor will have an impact on the market. Therefore, investors should always stay sober and not be swayed by emotions.
Investment is like a long journey, which requires wisdom and patience. Greed and fear are both scenery on the journey, and the real winners are often those who can move forward firmly in the wind and rain. As Lu Xun wrote: "Beasts will always come out, but the stars in the night sky will always be there."
In this game of mentality, I hope you and I can keep a normal mind, not follow the crowd, and wait for the flowers to bloom.