Article/Author of RIH session of Sina Financial Opinion Leader (WeChat official account kopleader) Principal Tan
The most frightening thing is the following two points. First, responsibility extrapolation. When I lose money, I find reasons outside. I complain everywhere, but never introspect myself. Such people are not suitable for the stock market at all, nor can they survive for a long time. Second, excessive self blame. Every day I feel sorry for myself and regret what I should have done. So I missed more wonderful things in life.
The stock market crash is not the worst
Good morning, casting friends!
Yesterday's Black Tuesday once again defeated a little bit of popularity that bulls had managed to accumulate, directly announcing that the previous bottom was lost.
Strangely, unlike the previous two circuit breakers, there were few jokes about the stock market and the circle of friends yesterday. Under the crash, the number of people talking about stocks seemed to decrease sharply overnight.
This reminds me of an old joke ten years ago, which said that it was easy to predict the top and bottom by looking at the number of bicycles at the gate of the securities business department. If the bike is too crowded to stop, it is not far from the top area. If the bicycle door is useless, it is not far from the bottom.
However, is there anyone who dares to tell the truth about three consecutive record breaking stock market crashes in half a year?
Almost no one, except for the joke who shouted at the top of his voice, "Pierce the bottom of the baby and catch it alive." Li Daxiao ”The cry of.
Last night, the headmaster was also sorting out how RIH performed in this stock crash 3.0?
The following points are obtained:
1. The entropy college timing system sent out a short signal after the first fuse. If you follow the signal strictly, then the subsequent slump has nothing to do with you.
2. In the timing report on January 12, RIH clearly proposed to switch to bear market thinking - based on the above five reasons, at this moment, it is necessary for us to switch to the overall way of thinking - into bear market thinking.
See this article for more details: Bear, Sister Bear| Entropy College Timing Report 1112
3. On January 20, RIH exclusively surveyed 59 front-line investors. The conclusion is:
57% believe that it is only a rebound at present, and may fall after the rebound.
The core logic of short-term rebound is three points. The first is valuation. I think A-share valuation is still too expensive. The second is that the three stock market disasters hit people too hard and could not be fully recovered in the short term. Third, the human intervention of the visible hand does not represent the arrival of the market bottom.
See this article for details: RIH's exclusive survey of 59 front-line investors: Is stock crash 3.0 over?
4. Of course, during this period, RIH also proposed that a rebound could happen at any time. (In fact, the rebound did happen, but it was too weak, too weak.)
Of course, today's talk does not mean how smart RIH is. In fact, even if you don't read RIH's articles at all, this round of stock market disaster can be avoided if you have basic risk awareness and in place executive power.
Yes, the key is execution. The key is you, not me.
So, as the headmaster said in yesterday's article, if you don't have the execution in place, you'd better leave the market as soon as possible. Because you are not a hunter, but a prey.
The system is not necessarily smarter than you, but it is more deterministic, more executive, and less subject to emotional interference.
In fact, all the historical firm offer data of A-share show that if you strictly follow the entropy college timing system to control your position, you have basically successfully avoided all the sharp falls in history.
The slump is not the worst. The most frightening thing is the following two points.
First, responsibility extrapolation. When I lose money, I find reasons outside. I complain everywhere, but never introspect myself. Such people are not suitable for the stock market at all, nor can they survive for a long time.
Second, excessive self blame. Every day I feel sorry for myself and regret what I should have done. So I missed more wonderful things in life.
Neither of the above two points is desirable. If you fall into one of them and cannot extricate yourself, you are not suitable for this market. You'd better leave as soon as possible.
In the face of the losses caused by the slump, the appropriate attitude is:
1. Reasonably analyze the sand table and find the reason from yourself.
2. Use the strictest method to strengthen their own execution (I will talk about the specific method in the book "Seven Practices for Advantage Investors".)
3. Be positive and optimistic about tomorrow, and the devil is afraid of those who cannot defeat.
If you fail to do the above three points, it means that your money lost in the crash is likely to be lost in vain.
Then please continue to cultivate. The stock market has always been the best training ground for the world of mortals. Remember: what you need is a killer like calm analysis and a priest like gentle introspection.
(The author of this article introduces: senior financial media person, founder of RIH investment reading conference, and quantitative investor. The original Entropy College timing system accurately grasped all the big trends of A shares in history. WeChat official account RIH118.)
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