Why is investment against human nature?

Investing is a very simple thing, because the threshold is not high, and basically every adult can participate in it.

At the same time, investing is also a very difficult thing, because investing is against! Human! Nature!

Why is it against human nature? Let me pick a few points to talk about:

1. Feelings are not reliable

Since the development of human society, relying on feelings has played a big role. Because it is the fastest to make judgments based on feelings, feelings often contain a lot of historical experience, and can play a good role in many fields. But unfortunately, investment is not among these "most fields".

"The market has been falling for a long time, and it feels like it has fallen enough", "The name of this company sounds very powerful and should have good investment value", "This stock is only 3 yuan per share, and it won't fall much anyway"... and so on.

2. Always in a hurry for success

"Which stock is good?", "What financial products are recommended recently?", whenever I am asked these questions, I am always helpless. Because these questions all imply an expectation-to make money quickly. This is also in line with the principle of human work, to achieve the goal as quickly as possible, while the world of investment is just the opposite.

Before making a choice, have you carefully understood what the company behind this stock does and how it does it?

After determining the target stock, do you have the patience to wait until it has a reasonably low price?

Be optimistic about it and buy it. If it falls, do you have enough patience to wait for it to rise back?

If you have identified a stock. Every time you buy it, it should be lower than the last time you sold it. Every time you sell it, it should be higher than the last time you bought it. With such a mentality, the probability of making money is naturally high, but the premise is still - patience! Patience! Patience!

3. Only look at the bright side

Risk control is a very core aspect of financial behavior, and running naked is always dangerous. But how many people borrow money to trade stocks, only thinking that the money earned from stocks should exceed the interest paid for borrowing money. How many people think about what to do if they lose money? Borrowing money to trade stocks will only make your investment mentality worse, your risk tolerance will be lower, and you will be more likely to lose your patience to wait.