4. 2 investment in golden law
Investment is not about skill but about the right idea. The right ideas helped to shape the right way of thinking, to set the right direction for investment and to master the right way. In order to foster the right concept of investment, the golden rule of investment must be followed。
A successful investor
The money book once put forward the view that you do not need to be a professional investor, just as financial freedom can be achieved. Because it is certainly not possible for an ordinary white collar to become a professional investor, but rather a successful investor. Successful investors need an outcome, that is, more passive income generated through successful investment operations。
Why the emphasis on “doing as a successful investor” is so important that we find that many people have seriously affected the implementation of a biological financial plan because of a series of failures in investment. In the dogmatic concept of financial management, it seems that everything is better to focus on savings and then effectively allocate surplus money and hold it for a long time. It is not so easy to think about financial management, but successful investment is not difficult, and financial soundness can be largely achieved only if the ability to think independently is able to escape the various investment traps and combine good financial management practices。
Think, are you a successful investor? 。
The tens and tens of investment
The german investment master andré kostorani, known as “the stock market witness of the twentieth century” and “one of the most successful investors in the financial history of this century”, in his representative’s confession to a speculator, exemplifies many of the fine, unique ideas of finance, notably the “ten books” and the “ten rings” of investment, which deserve our best consideration。
Ten:
(1) to have an opinion and not to follow the wind
(2) ensuring adequate funding
(3) patience
(4) believe in themselves
(5) be flexible and keep in mind possible errors in thinking
(6) if a new situation emerges, investment programmes should be reconsidered
(vii) regularly check the list of stocks purchased and check the adequacy of current holdings according to the current situation
(8) it is important for the target audience to have ambitious development prospects
(9) consider all risks, even those that are extremely low in probability
(10) be humble, no matter how much you achieve。
"ten rings":
(1) following so-called authoritative recommendations and internal information, secret information actions are the most undesirable mistakes of investors
(2) lack of self-confidence and a tendency to think that others know more than they do, often leads to the failure of the investment, whereas the seller does not necessarily know why he sells and the buyer does not necessarily know why to buy
(3) attempts to earn back the lost money will only make it impossible for it to stop in time and become deeper
(4) past indicators cannot be over-dependent, those are only reference data
(5) wrestling is an investment taboo, which requires timely decision-making whether to sell or buy and not to miss the investment
(6) do not focus too much on changes in the investment market and keep a low profile and a low profile for the insignificant wind
(7) do not make a final conclusion when making money or losing money
(8) do not sell stocks as soon as they want to profit
(9) unconsensual and unwise behaviour influenced by emotions and personal preferences in decision-making
(10) blind self-confidence leads to loss of blood。
103. Long-term investments yield high returns
Peter lynch, the investment master known as the “world first fund manager”, said: “in the investment market, it is normal to see a drop, and even in the long-term bull market, there are frequent declines that do not have to be frequented in and out for temporary increases and falls.” his operating principle was to maintain long-term investment, which would yield high returns。
In addition, he stressed that in the investment market, investors did not need to require each stock to make money, and that if there were 10 shares in an investment portfolio and only 6 would make money, the investor's final return would not be so bad. Further, the price of a stock fell at most to zero, but the stock price went up, which was “no tops”. Thus, long-term holding of good stock is always profitable when the price rises and falls are treated in a balanced manner。
Simple is always better than complicated
It has long been proven that no method or tool can predict markets in a sustainable and stable manner. Therefore, respect for the market, orientation from the market itself, adherence to rational thinking and the use of probabilistic thinking are the most practical ways to invest。
As far as jane is concerned, almost everyone is familiar with this phrase, just as the simpler the method of investment is, the simpler the probability of error, the more durable the method is. The pursuit of a simple investment style requires us to be ordinary when investing. As they say, “too much care, too much trouble, too much love for children is not conducive to their growth.” maintaining the usual mindset of investing in finance is often surprising later。
Think your investment is simple。
105, no eggs in a basket
“don't put all the eggs in the same basket”, which many people are familiar with. The proper allocation of investments in a configuration manner, with a view to achieving risk diversification and safeguarding the controllability of the portfolio, is fundamental to asset allocation。
In fact, despite the understanding of the rationale of “eggs and baskets”, we need to have a deeper understanding of “eggs” and “baskets”. For “baskets” of ordinary individual investors, we can simply classify them in different asset classes, such as bonds, equities, real estate, bulk commodities (such as now popular gold investments), foreign exchange, etc., whose investment market performance is often determined by different factors. At the same time, geography is another form of “basket”, with markets in different regions often having their own characteristics. As a result, the allocation of funds on assets in different categories and regions is the way in which eggs are placed in different “baskets”。
Risk is not desperate
The market for investment is a battleground without smoke to break the mindset of a risk-blinding, and often with a windfall. It is not an investment, it is no different than gambling, to gain high returns, to kill everything and even to mortgage property and cars to increase inputs. Ignoring risks, making reckless investments, and seemingly disillusioned, are nothing more than the courage of tobo's ill-fated pets。
So investment in finance is desperate, cool about its own risk preferences, work hard to understand its own risk tolerance, and then choose the assets that match it, so that the desired returns can be achieved without taking too many risks。
107. Volatility is a constant pattern
The wave theory is one of the very important principles of the investment market, which is centred on the fact that the prices of investment products cannot always rise or fall, but rather fluctuate around their intrinsic values. Wave theory was invented by ralph nelson elliott, master of technology analysis. According to elliott, the price volatility of any investment product, like the tides and waves of nature, is followed by waves and waves, with a considerable degree of regularity, displaying cyclicality, and that any fluctuations can be followed. Therefore, investors can predict future market trends based on these regular fluctuations and apply them in terms of buying and selling strategies。
108 market cycle, favourable
There are four seasons of change each year, as are economic cycles. Investors will only be able to obtain better returns on investment in different market environments if they follow a “winding” pattern, which is consistent with the timely increase and reduction in clothing by weather events。
The economic cycle, like an “invisible hand”, determines the mood and efficiency of the enterprise, as well as fundamental trends in securities, especially equity. Securities patterns fluctuate with the cycle of economic cycles, and in the long run economic growth is the biggest driver of stock-market growth。
In general, the economic cycle can be divided into four stages of recession, recovery, overheating and stagnating, each with more visible features of economic performance, with one of the most performing large classes of assets. For ordinary investors, investing in response to changes in the economic cycle allows them to make less directional mistakes and is an easy way to invest。
Think, do you know the market cycle? 。
