Family Life Knows Everything.

Chapter 256 Investment Mastery Six Principles

Economists believe that many economic behaviors of people are influenced by irrational factors such as personal preference and conformity, and such irrational factors will make people with excellent financial management skills make costly mistakes.

One no: never greedy
Indeed, it is very important for investors not to be greedy.In fact, not being greedy is easier said than done. Not only must we not be greedy, but we must also "let it go as soon as it is good" and never love to fight.In addition, you have to be able to "admit the compensation". Some people always believe that they will win back their capital in the next hand, but they lose more in the end.Therefore, investors should resist the temptation to avoid multiple losses.

Two Nos: Never touch financial tools that you don’t understand
If you don't understand the market conditions, don't have your own strength, and invest rashly, you can easily lead yourself into the maze and fall into the clouds.At this time, there are two solutions, one is to find an opportunity to escape quickly, and the other is to learn from the beginning and strive to become an expert.You should learn about investment knowledge, seek help from others, and develop the habit of continuously increasing your investment and financial management knowledge.

Three No's: Never Believe in Gossip

Most gossip is false, and even when true, stock prices tend to go the other way.Trust your own judgment, not gossip.Investment does not pursue 100% success, but seeks to take appropriate risks and obtain greater returns with relatively small risks.

Four nos: Never take risks

Investors who don’t have enough time, foundation, or sufficient professional knowledge, I advise you not to play that kind of “horror game” lightly. Its profit and loss gap is too large, and it may cause you a heart attack!

Five Nos: Never borrow money to invest
Investing with borrowed money can cause you to lose money before making money.Borrowing money to invest will not only be dragged down by interest, but also a heavy psychological burden, so try to avoid it.Do remember: this trick is a big taboo in investment, it is better not to touch it.

Six Nos: Never hold a gambler’s mentality

Never let go until the day you win. This kind of blind move will only snowball your debts and regret it.In fact, if you win and don't want to stop, if you lose, you don't want to stop. In the end, you will end up empty-handed.

Investors must bear in mind the above "six don'ts" principles, coupled with rich investment knowledge, I believe that they can "play" very happily in the investment market.

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Adhere to your own investment and financial management principles, and don't follow the trend, so that you lose good opportunities for nothing.Knowing the bottom line on big investing and financial decisions, including the decision to buy or not to buy, can greatly reduce the likelihood of failure.

Before making any important investment decision, be sure to discuss it with a friend or expert who disagrees, and look at the problem from a different angle, so that you will find out where you have fallen into a misunderstanding.

(End of this chapter)