Snowball Special Issue No. 028: A Guide to Preventing Fools in the Stock Market

Chapter 7 Vanity is the biggest liar
If so, individual investors, posted on Snowball's "Goodbye, Liar" campaign

I earned more than 20% from the stocks recommended by a certain private equity at the beginning. I thought I was awesome, and I was doing so-called value investing.Then to the 15% loss, then to the frequent operations during that impetuous period, and now to calm down and think.

It was 2012, when I read Munger's "Poor Charlie's Almanac" at school, and then came into contact with stocks.Gradually, I also fell in love with this profitable investment method.After graduation, I saved a sum of money after working for half a year because I was relatively frugal with my own money.During the period, I also bought a lot of books by Buffett and Lynch to read, and I am still more confident in entering the stock market.

It was a Sunday, and I went to the place I made an appointment to open an account, and then returned to the town where I worked to open a bank-linked account.I remember that the staff at the bank who handled the linked account told me that there are very few people who open stock accounts now, and she even forgot the process of handling the stock linked account. At that time, I was secretly delighted. "?
The next afternoon, after saving enough for my living expenses, I transferred all my cash to the stock account, and then bought all the stocks of an excellent company that I have been admiring from a certain private equity, and then in the next few months , I have been looking for articles and investment targets related to value investing on the Internet. During this period, I bought a bank stock and then held it all the time.Slowly, I found that my income has also increased by 20%. I often chat with my friends at dinner parties. I am a shareholder of a certain company. What I do is value investment and I hold shares in excellent companies.Get the joy of success in the praise of others.

Then I quit my job and chose to start my own business after looking around. At the same time, my other two college brothers also started their own business. Out of support, I divided my little money into three shares, one for each of us.At that time, the wind direction of the stocks I held suddenly reversed, and the stocks were almost cut in half. Due to the need for funds, I had to sell my "most beloved" stocks. I sold one after the price limit Stocks, because I got part of the dividends that year, the price I bought was not very high. In the end, I successfully turned a 23% gain into a 13.71% loss on this stock.

The next day, I transferred a small amount of money to that buddy, and the rest of the money was bought into a bank stock I still held (this was also recommended by a folk stock god), and I roughly Research and then buy and hold.Not long after, another buddy was also in a hurry to spend money, and I also reluctantly cut my flesh out, and ended up with a loss of about 5%.

Then start your own business, with the support of your family.Adding the money I had left, after about half a year like this, I had some money left in my hands.So he started to toss around in the stock market again, looking for bull stocks, bigwigs on the snowball, well-known financial blogs, and other bull stocks.Then I started trading non-stop. After I bought a certain stock, I couldn’t hold back if it didn’t rise for a few days.After learning from the pain, I slowly came to my senses in May of this year. How could such an operation make money? As Xueqiu said, after reading Buffett’s book several times, he entered the stock market and was still chasing ups and downs.What I do is speculation, and everything is caused by psychology.

When I gradually calmed down, I also carefully screened some targets with excellent performance and small stocks, and then held them.The number of operations is much less.I also spent one night, holding back a mouthful of blood, sorting out all the operation records, watching some stocks that I had operated before have now become bullish stocks, with beautiful graphics coming out, the blood was almost sprayed on the computer.Fortunately, the number of times I have operated has decreased recently, and I have gradually found and established my own investment methods. The trend of my investment income has also stabilized a lot.

Summary: Young and impetuous, coupled with too much vanity, always thinking about getting rich quickly.Since I started my own business, I have gradually realized that there are no shortcuts for many things. Businesses have to be run one by one, and wealth has to be accumulated bit by bit.The awesome characters you see are just their brilliant present, and you don't see how much hardship others have paid behind.I always want to find a big bull stock, I am optimistic about this one today, I am optimistic about that one tomorrow, tossing back and forth, never calm down to study the company carefully, how can I make money, at most it is just a moment of good luck.I see that everyone is writing about the experience of being cheated. From my own experience, I think the main reason for being cheated is often because of myself. I didn’t do my job well and didn’t have confidence. in loss.

Calm down and be down-to-earth, guard against arrogance and obscenity, be tempted to be patient, and don't follow your own way!
(End of this chapter)