A successful retail investor must lifelong learn these 3 things
First: Market Timing
When to enter, when to exit, when to hold, and when to increase positions. In other words, when to grip tightly and when to let go.
Second: Capital Management
The most important thing to remember is not to lose the principal, preserve the principal, preserve the principal, preserve the principal. This point was later mastered by Buffett.
He said there are only 3 rules in investment trading: the first rule is to preserve the principal, the second rule is to remember the first rule, and the third rule is to remember the first two rules.
Third: Emotional Management
This is the most important point. If you cannot control your emotions, then no matter how good you are at the previous points, you will still be a failure.
Rationality, logic, and pure economics cannot shake the market; the market is influenced by human nature, which is our emotions.
The real thing to combat for a lifetime is dealing with your own inner self, that is, “emotions.” If your heart is not calm, you will never be able to do well in investing.
Moreover, as time goes on, the weight of the “heart” becomes even greater! Don't believe it? Just wait and see.
As a seasoned cryptocurrency investor, I, Tu Fei, share my experiences and insights. Interested in the crypto world but don’t know where to start? Click on my profile to see the introduction of Zhu Ye, and let's witness the moment of miracles together.