The public's emotions include greed, fear, negativity, optimism, etc. Risks will also change according to different emotions. When you are optimistic and in a good mood, you will be willing to take greater risks and ignore hidden risks. Therefore, you must know that market phenomena are not what you see on the surface, but what the public sees. You must understand the essence of things. When you are negative, you are unwilling to take more risks.
Changes in emotions also determine investment returns. It is also easy to make two mistakes. Buying the wrong asset at the wrong time means direct losses. The other is not buying the right asset at the right time, which means not earning the money you should have earned.
The former means ignoring and underestimating the risks and not conducting in-depth research, which leads to wrong participation;
The latter means insufficient cognition, insufficient transformation of knowledge in all aspects and a small pattern, which leads to missed participation.
Brainwashed by the market cycle, investors tend to buy in hastily, thus paying a high price, and sell at the bottom out of fear of losing money. Only a few people can resist the temptation of others to make profits and the soft and hard persuasion of friends, and keep a balance of mentality and emotions and do the opposite.
Reverse operation, on the surface, is just a simple reverse operation, but in fact, it requires a lot of effort and in-depth research on the financial market for a certain period of time, accurate judgment, broad vision and pattern, as well as cognitive transformation of the world view, to achieve seemingly easy reverse operation, and there will be no lack of actual research and experience accumulation costs behind it. Only in this way can we remain firm in our position as always. We should learn from them, who often seem to say a lot of things lightly, but never show off.
Affected by the emotional cycle, most investors tend to buy in hastily without calculating the cost at the peak of the bull market, fearing missing out on opportunities, and thus pay too high a price; at the bottom of the bear market, they panic-sell high-quality assets for fear of losing money. However, experts can resist external influences, maintain emotional neutrality and balance, and do the opposite.
No matter how much money you have, even if your pocket is clean, you are the only one who owns your wealth. Don't let your emotions be your master, which will lead to losses due to reckless operations. Don't expect to do things perfectly in one go. You may have reminded yourself of the same mistake, but under the influence of emotions, you will make it twice or three times. You should lower your own perfection requirements and find a coping strategy so that you can do better next time you make the same mistake. And you should calm down and lay a solid foundation. #美国CPI数据连续第4个月回落