What accumulates in the crowd is stupidity, not innate wisdom. The mentality of stock trading is inversely proportional to your distance from the crowd. Do not recommend stocks, talk less about stocks, keep a distance from the market crowd, and try to stay away from daily price fluctuations. Do not let the market machine confuse your already clear trading philosophy.

1. Speculation is as ancient as mountains.

I read this sentence from "Memoirs of a Stock Trader", and every time I read it, I feel a shock in my heart. Although a short sentence reveals the various states of the speculative market, I seem to see people struggling in the long river of speculation, including the author's suicide after a failed speculation. The essence of speculative games will not change, and human nature will not change either. Greed, fear, despair, and ecstasy, and the ending is often predetermined at the beginning.

2. People abandon me, people take me back.

This sentence seems to come from the Chinese book "Records of the Grand Historian: Biographies of the Merchant Colonies", which contains rich ancient Chinese private financial management ideas. "If someone abandons me, I will take, I will give." It was listed by Sima Qian as an important strategy for winning by surprise. In the securities market, I believe that "if someone abandons me, I will take, I will give." should be used as one of the most basic ways of thinking, thinking more in this way, maintaining vigilance against various prophecies, and striving to be cautious when others are greedy, and bold when others are afraid.

3. Buy with confidence, hold with patience, sell with determination.

This sentence was read in an early version of a popular investment manual, which collected many maxims. After the baptism of time, what I remember now is this sentence. Three sentences explain the specific principles of investment behavior in a concise, thorough, and thorough manner. Looking back at my investment experience, almost all mistakes are also included in these three sentences.

4. Only by holding stocks can one make big money.

To make big money in the stock market, the ability to hold stocks requires hard work and learning. Whether you have the ability to study indices or choose stocks, the real skill that can make you money is how to hold stocks. The principle of how to hold stocks is not as clear as studying indices or recommending stocks, which can be easily improved in the short term. It requires long-term investment experience accumulation, continuous improvement of psychological qualities, and effective methods of risk control.

5. The enterprise value determines the long-term price of stocks.

This sentence is a simple summary of my research on value investing theory. After nearly a decade of investment practice, I believe that in order to maintain both a research focus on stocks and a calm mindset.

You must have a set of judgment standards for the high and low stock prices, even if you use some simple judgment standards. The important thing is that you must have them. Your view on the price of the market cannot rely on whether it is above or below the cost of large funds. Otherwise, you will blindly believe in the power of large funds. If your main reason for trading comes from the traces of large funds, you cannot focus on the price at the same time without trading, and you are easily trapped in frequent buying and selling.

Because you don't have your own standards for the value of stocks, this often leads you to follow those big funds who are just as foolish as many retail investors. In the stock market, big funds that speculate based on value discovery and mining are generally more likely to succeed and achieve profits. Relying solely on financial advantages to control the market and break away from value speculation will not lead to optimistic outcomes. The more mature the securities market, the more obvious this is. Supply and demand create short-term price fluctuations, while the intrinsic value of a company determines the direction of long-term fluctuations.

6. The decline in the stock market, like the snowstorm in January, is a normal phenomenon.

This sentence is from Peter Lynch's "Overcoming Wall Street": "Actually, a stock market downturn like a blizzard in January is a normal phenomenon. If you are prepared, it won't hurt you. Every downturn is a great opportunity, and you can choose cheap stocks that investors scared away by the storm give up." I think this sentence vividly illustrates the cyclical nature of the stock market. People are unaware of the ups and downs of the stock market in the cycle of spring, summer, autumn, and winter, but they are often surprised by the ups and downs of the stock market. In fact, the ups and downs of the stock market are so normal, but sometimes our market's spring is too short and winter is too long. I think this is not too difficult for those who are used to staying in Northeast China to understand. The sentence is:.

7. Try to keep it as simple as possible.

This sentence is repeatedly emphasized by American technical analyst John Murphy in the introduction of his book "Stock Price (Futures) Technical Analysis and Forecasting". His meaning is to use technical analysis "as simple as possible". I understand that "as simple as possible" means mastering the core ideas and applying them, such as once a trend is formed, it is irreversible in the short term. When selecting stocks, one should choose stocks that lead the rise.

In my practice, I often remind myself to keep my investment philosophy and principles simple. If things are simple, they become clear, and the constraints on my investment behavior become stronger. Anything that does not conform to my principles is easy to resist, just like Forrest Gump. A simple and simple life contains joy and true wisdom.

8. Continuously reducing transactions.

This is a sentence that I understand from my countless mistakes and losses of money. Buffett once said, "Money flows from active investors to patient investors here. The wealth of many energetic and ambitious investors gradually disappears." In fact, regardless of your beliefs, whether you are a speculator or an investor, this sentence applies. Let's start by reducing trading to minimize your mistakes.

9. Stay away from the market and away from the crowd.

The book "The Crowd" tells us that what accumulates in a crowd is stupidity, not innate wisdom. The mentality of stock trading is inversely proportional to your distance from the crowd. Do not recommend stocks, talk less about stocks, keep a distance from the market crowd, and try to stay away from daily price fluctuations. Do not let the market machine confuse your already clear trading philosophy. In my college years, I read a Japanese booklet about how to experience the joy of loneliness. I really like the viewpoint in the book. Loneliness is a special power. If you experience loneliness and it brings happiness, congratulations, your soul is powerful. In the noisy market of the stock market, it is the place where one should be most self reliant and lonely. Knowing to stop can lead to determination, determination can lead to stillness, stillness can lead to peace, peace can lead to contemplation, contemplation can lead to success.