Your world is a projection of your inner self.
The stock market is another reflection of your real world.
Many investors like to get entangled with a particular stock, and even confront it, while trading.
This approach is actually incorrect.
Perhaps some people will tell you that they repeatedly trade a single stock and have made a lot of money, but this has nothing to do with entanglement. What they do is called only trading familiar stocks.
What we mean by entanglement is actually a few wrong mindsets in stock trading that need to be changed.
Otherwise, you will be trapped in the world of stocks and emotions and cannot get out.
The following situations and mindsets should be avoided.
1. I won't sell if I lose money, I must hold on to it until it's profitable.
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If I lose money, I won't sell, and I must wait until I make a profit before I get out.People who stubbornly hold onto stocks are the epitome of entanglement with the stock market.
They fail to understand that some stocks are doomed to cause losses.
For instance, if you buy a stock at its peak, it is destined that this transaction will result in a loss.
No matter how stubbornly you hold onto it, there will be no outcome.
Why persist in the entanglement? Let go when you should, admit your mistakes when you should, and only when the funds are released can there be more opportunities.
2. Continuously reduce costs through averaging down until profitability is achieved.
Some say that I can lower the cost through averaging down to achieve profitability.
It seems entirely possible, but in reality, it is very difficult.
On one hand, you need to grasp the price at which to average down.
On the other hand, you need to have sufficient funds.On another note, you must ensure that the stocks you add to your position can ultimately survive and not be delisted.
Adding to a position is actually a second or third transaction, and the goal of each transaction is to make a profit, not to reduce costs.
When you know for sure that the stock may continue to decline, it is wrong to add to the position no matter what.
3. After selling, it's hard to bear the feeling of missing out every day, yet you don't buy again.
For missing out, never have an obsession.
It's because you have an anchor point of price in your mind, and this anchor point will make you feel very uncomfortable.
Forget this anchor point and re-examine a stock, whether it should be bought at the moment.
Remember, missing out will not make you lose money.
The money you earn less is just a passing cloud, it's the conclusion you have after peeking at the stock's trend.
You at the moment cannot confirm the future trend with 100% certainty, so there is no such thing as missing out.4. Never forget, occasionally take a look, and even buy a little, over and over again.
Stocks that have been sold, just forget about them, don't entangle yourself with them anymore.
Constantly buying and selling the same stock is not necessarily a good habit, unless you are sure that the stock is worth repeated operations.
In stock trading, being fond of the new and hating the old is not necessarily a bad thing.
Constant entanglement is the bad thing, because good stocks don't need to be entangled, the stocks that will entangle you are often the ones that cause you pain.
In investment, what makes you suffer may be growth, but what makes you suffer repeatedly must be problematic and should be abandoned.
What we can do is to be responsible for every transaction and to do it without regrets.
If you confess and are rejected, don't regret it, because you have done what you can do.
It's like you have already bought this stock, but it just soars after you sell it. If you don't want to chase it anymore, don't look at it again.After all, with over 5,000 listed companies, there is no need to be fixated on just one.
This is like missing out on an ex-girlfriend, then strive to find the next one, instead of always being preoccupied with the first love.
Firstly, one can aim for a long-term relationship, but with principles.
Who says you can't just buy one stock, who says you can't hold a stock for the long term?
Behind the idea of a long-term relationship is the expectation of long-term returns, not constant entanglement.
If the stock price keeps fluctuating up and down, and you are always hovering between profit and loss, does it make sense to hold long term?
Only by buying low and selling high does it have value, right.
So, holding long term is not the goal, buying low and selling high becomes the principle.
The goal of stock trading is to make money, not to engage in meaningless consumption.
So, put principles first, and you won't have any entanglement with stocks, only the points of buying and selling in transactions.Regarding a stock, both buying and selling are based on principles, not a reflection of inner emotions, and making money becomes natural.
Secondly, it is better to miss out than to easily invest heavily.
In love, the most taboo is to easily invest heavily, and the stock market is exactly the same.
Interactions between people require a period of observation, and stock trading is exactly the same.
When you are not familiar with a listed company, you need to track it.
When you are not familiar with the way a market manipulator operates, you need to follow it.
When you are not familiar with the trading model, you need to practice repeatedly and try to make mistakes.
Do not bet heavily at the beginning because you are not familiar with it. It is better to miss out than to make a mistake.
Because you do not have the ability to control the investment, it seems that you will give up an opportunity, but in fact, you do not have the ability to grasp the opportunity.
At least you won't lose money if you miss out, so why pay for something uncertain or even completely unknown?Thirdly, a good horse does not eat the grass behind it, the world is vast.
The stock world is rapidly expanding, and there are already 5,000 companies now.
There are not just one or two big bull stocks, but there are thirty to fifty that hit the daily limit every day.
Do not always be nostalgic, do not always eat the grass behind you, not because it is not delicious, but because the habit is poor.
If your mentality cannot be adjusted, and you are always nostalgic about the past stocks, you will find that you are always in place.
Because most of the stocks you have abandoned are actually not good.
But the survivor law will always make you have a few good stocks in your eyes, making you regret and regret.
At this time, you should look forward, because you can't grasp them at all, and there is no need to stick to them.
Different stages have different good stocks, the cycle is repeating, and opportunities are everywhere.
It is much better to spend more time honing your stock selection ability and trading ability, rather than lingering and not being able to go out.Fourthly, sever the karmic ties of misfortune and avoid entanglement in mistakes.
Some people have suffered many losses on a single stock.
Especially for some listed companies without integrity, those that engage in financial fraud, it is imperative to sever these karmic ties.
Not every stock can be profitable through repeated arbitrage.
The ultimate fate of some stocks is delisting, although the proportion is not high.
Just as we always encounter scammers and manipulative individuals, do not give these people a second chance to hurt you.
The world is so vast, why be persistent in making mistakes where you have already erred?
Good stocks will not harm you, but will continuously bring you surprises and stable returns.
Whether it is the rise in stock prices or stable dividends, they are the karmic results of your virtuous investments.
However, those karmic ties of misfortune are the trials you need to face, but the most fearful thing is not the trials themselves, but the inability to end them.Treat stock trading as if you were dating, but don't consider it as marriage. If the other party is good enough, you can also date for a lifetime.
Entanglement is not a positive term in the stock market; only by giving up can you gain.
Life is about possessing while also resetting to zero.
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