Why don't I "sell high and buy low"?
Today I’m going to talk about the issue of “selling high and buying low”. Some people say: If a currency rises by more than 30% or more in one day, there is a high probability that it will pull back and fall next. Then sell the low point first and then buy it back. Isn’t that good? ?
I believe that many people have had the above thoughts in the secondary market.
The currency I bought suddenly skyrocketed one day, which was beyond my comprehension range, and this skyrocketing seems to have no clear logic, and there is no good news to stimulate, so I feel that this skyrocketing is "abnormal", since " Abnormal", it is bound to be impossible to last for a long time, and it is believed that there is a high probability that it will fall in the short term.
So I hurriedly threw away part of the chips first, and then planned to buy them back after it fell, so that I could make a fortune.
Many times such examples will indeed come true. In my own experience, it is interesting that the time of fulfillment is very coincidental. It was first when I first entered the investment market, and later after I got used to regular investment.
When I first started investing in U.S. stocks, I bought and sold based on my feelings. After accumulating a certain amount of operating experience in a short period of time, it is especially easy to find such stocks with "abnormal" growth rates, and I can taste the sweetness when I operate in this way from time to time. . So after having that kind of experience, I gradually took this "experience" as my "savvy" and my own investment guide.
But no experience is 100% effective, and neither is my "experience". When I sold the chips once and it couldn’t fall back, I first complained about the irrationality of the market, and then comforted myself that the market would definitely pull back, but I had to wait until it had risen to a level that I couldn’t even believe Price, I just woke up.
People are always stubborn, especially investors who are new to the market, and often mistake their luck for their own ability.
It was the same for me at that time. When this "experience" failed once, it was not enough to make myself sober. It was not until I failed many times that I gradually made myself doubt whether this experience was luck or regularity, and finally honestly admitted that it was just luck. That's why I started to learn technical analysis and look at the K-line chart later.
The article I wrote before "My Investment Experience: Entering the US Stock Market for the First Time" reflects this experience.
Looking back at that period now, I think the worst impact on me was not the loss in investment, but the distortion of my mentality:Mistaking small-probability events and luck for laws, and thinking that you can easily grasp the laws, and then invest with this fluke mentality.
I have always believed that the most important thing in investment is mentality. Without a peaceful mind, it is impossible to think rationally, and without rational thinking, it is impossible to get rid of emotional interference. If you can't get rid of emotional interference, you can't perform appropriate operations, and losses are inevitable.
Many years later, when I got used to the fixed investment, the amazing thing is that this feeling came again. Whether in the stock market, the digital currency market or other investment markets, I often have this feeling, and it has been fulfilled many times.
But at this time, I was used to fixed investment. When this wonderful feeling occurred, I no longer had the strong urge to use it to make a profit, so I would not turn it into an action of selling high and buying low. It just became an indicator for me to think about market trends and judge subsequent developments.
Look at this feeling with this mentality:If it fulfills its promise, I will not be too excited; if it fails to fulfill it, I will not be too anxious, and my mind will be much calmer, and it will not affect my operation in the general direction at all. I won't lose watermelon because of sesame seeds.
