Before I knew it, the A-share market had been in a bull market for more than half a year. I didn't see it from the market, but from the reaction of my family.
When novice investors start talking to you about the stock market, you should know that the bull market has been going on for a while and may even be a little overheated.
Why do novices realize it so late? Because they only know that spring has arrived when their positions turn from losses to returns or even profits.
Also, because novices dare not add to their positions when the market falls, their holding costs are generally quite high, and they are deeply trapped. Therefore, when they get out of the trap, spring has often passed and it is summer or even autumn.
Mistaking summer and autumn for spring, it is easy to chase high prices, continue to increase costs, and continue to be deeply trapped in the next bear market.
The deeper you are trapped, the harder it is to get out of it, and the later you will realize it.
So we fall into a vicious cycle.
Another characteristic of novices is that their holdings are scattered. The reason for this is that they don't know how to invest randomly.
Investing without understanding means having no opinion on investment, no concept of the target, and no vision of the goal. They don't know how to invest, what to invest in, or why to invest. So, like shopping, they randomly pick a few stocks based on their intuition or recommendations from the platform and invest in them.
If you invest blindly like this, losses are normal. Profits can only be made because of the bull market, and you can make floating profits no matter what you buy.
The teaching chain often says, remember to repair the roof when the sun is shining.
If you don't repair the roof when the sun is shining, you will have to sleep in water and mud when it rains heavily the next day, and you will have a sleepless night.
When is the sun shining? When is the bull market.
What is roof repair? Tidy up your own warehouse.
How should we organize it? There's no standard. Everyone has their own unique situation. Even a slight error can lead to a huge mistake.
But generally speaking, you should clear away all the things that are thrown around randomly, just like cleaning your room. A clean room is a comfortable and tidy room.
The correct target should be one that you dare to hold for a long time, one that you dare to hold a large position in, and one that you dare to increase your position in when the price falls.
I dare not hold it for a long time, dare not hold a heavy position, and dare not increase my position when the price falls. It is very likely that this position was wrong from the beginning and I have not thought it through at all.
If I haven’t thought it through, I’d rather not build this warehouse.
Newbies are most afraid of missing out. In fact, Jiaolian has already written about this: it’s better to miss out than to invest in the wrong thing.
Xiaobai also often likes to speculate.
They look down on high-quality blue-chip high-dividend stocks and bank stocks with dividend yields of 4-5%, but have a special liking for first-tier city properties with rental returns of less than 2%.
What's the reason? It's simply that housing prices have risen rapidly over the past decade or two.
Not looking at the asset output rate but looking at the asset appreciation rate is a typical speculative mindset.
But from a speculative perspective, what house can compare to BTC?
It's speculation. There are times when asset prices skyrocket and you feel great, and there are times when asset prices plummet and you lose everything.
A newbie who can't even master the return model of interest-bearing assets has a special liking for leveraged speculative assets?
Why do people prefer speculation?
I think it’s probably because the capital is too small.
Because the principal is too small, only a skyrocketing excess return rate can make you feel the joy of making money in absolute terms.
As for why the principal is too small, this goes back to what was said above, that is, people dare not hold a heavy position, dare not increase their positions, and dare not hold for a long time.
Therefore, Xiaobai’s problem is a comprehensive, three-dimensional, and all-round cognitive defect, and it is by no means possible to get on the right track by correcting one or two blind spots.
You have to calm down and study hard.
