My insights on the investment process: the way to fight anxiety is "long-term thinking"
The articles I wrote in recent days are all related to Buffett and value investing. I also said in the article that my own investment is also operated in the way of value investing. In addition to digital currency, the fields I invest in include precious metals and stocks (A shares to be precise), and in all these fields, I invest in the form of long-term holdings.
This was not the case when I first stepped into the investment field more than ten years ago. At that time, like almost all novice investors, I was obsessed with short-term operations.
At that time, the first market I entered was A shares. At that time, when I saw the decline, I thought the prospects were pessimistic and I wanted to cut my flesh; when I saw the rise, I was excited and wanted to chase the high; The trend leads.
After a period of time like this, I felt exhausted and overwhelmed, so I quit, stopped touching the stock market in the short term, and began to reflect on my various behaviors.
During that period, I bought a lot of books on technical analysis, and I personally have a relatively strong mathematical foundation. It is not difficult to understand the mathematical principles behind the indicators in technical analysis, but after reading those technical analysis, There is always a faint feeling in my heart that something is wrong.
If technical analysis is so effective, then I only need a computer, program all the indicators into the software, and buy and sell according to the indicator prompts? If this is the case, why didn't the so many market software on the market at that time make every investor rich?
Later, I started to try some market software and many technical indicators, and found that at a certain point from time to time, the buying and selling signals given by different technical indicators were opposite. Only then did I understand,Even with technical indicators, people still need to make judgments.
But people are affected by emotions when they make judgments, and they may make opposite judgments on the same point when they are emotionally excited and depressed.
So how can we eliminate our irrational emotions and make rational judgments in investment? At this time, I came across Buffett's book by chance, which fully introduced my decades of experience and lessons. Since then, my thinking has undergone tremendous changes. I have tried to control my hands, watch more and move less, restrain my impulse, and learn to be patient.
After persisting in this way for a period of time, my life began to change. I was no longer influenced by the market to influence my investment, but began to use the market to arrange my investment; Those emotions and anxiety also happen to almost every investor.
When I observe others and reflect on myself from the perspective of a bystander, I have a further understanding of investment. During this process, I gradually formed today's investment methods and investment philosophy. Therefore, I very much agree with Buffett's investment philosophy and have been practicing it.
In the past two days, some readers left a message saying that Buffett is not optimistic about Bitcoin, which is true, but this does not mean that his investment philosophy cannot be used in digital currency investment. I think his philosophy is also applicable and effective in this field.
Some readers asked how long the long-term investment is. In my opinion, the so-called long-term is as short as 1-2 years, and as long as 5 years or more.Some friends may think that this time point is too long, and they are afraid that after waiting for so long, time and money will be wasted if there is no result.
In fact, judging from my investment experience, in the past 10 years of A-share investment, I have used this time period as the cycle, and in A-shares, I have no losses, only profits. I have a different view on A-shares from many people. I think it is not difficult to make money in A-shares.
Some readers also commented on whether there will be a bull market in this round. I think this is entirely possible. All the current views on the bull market are speculations, and only time will tell whether there is a real bull market. I wrote an article last year to warn everyone that if we encounter an extreme situation: there is no bull market in 5 years, what should we do?
But now it seems that we as investors must consider the possibility of this extreme situation more and more carefully.What if this is the case? Then at least make sure not to invest with a gambling mentality, short-term copying, etc. In the case of insufficient bullets, it is necessary to plan carefully and strive to use every bullet wisely.
