Investing often results in a 70% loss, 20% break-even, and only a 10% chance of profit, with the probability of making money at just 10%, while the probability of losing money stands at 70%.
Everyone has heard that phrase.
The stock market is risky, and one must be cautious when entering.
But have you noticed that even with such a poor market, there are still people around who take risks to trade stocks.
Some people dare to bottom-fish in the stock market, boldly entering the market to become a true warrior.
What charm does the stock market have to attract so many people?
There are 200 million stock accounts, although many have become dormant, but it also represents that it has attracted generation after generation.
Even if the market environment is poor, there are always people who want to try their luck in the stock market, hoping to turn a bicycle into a motorcycle.
This principle seems to be the same as in casinos, even though everyone knows that gambling can only lead to loss, there are still people who can't resist the temptation to try.
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There is still a 10% win rate in the stock market, so there will always be people willing to enter the stock market to try their luck.A friend once told me this: If there's a 10% chance of making money, and it could be a significant amount, or even a continuous stream of income, then it's worth a try.
This society seems to offer many opportunities, but in reality, there are too few chances to make a lot of money.
By "few," I don't mean there are none; I mean the proportion is too low.
For example, in recent years, internet e-commerce and live-streaming sales have been very popular, and internet celebrities make a lot of money.
But if you look at the internet celebrities who have actually made money, are there even 10%?
Less than 1%.
You might think that starting a business used to be very profitable, but how many have succeeded in making a lot of money?
Also, less than 1%.
Therefore, there are some people with mature thoughts and relatively high cognition who still believe that the stock market has opportunities.
There are also some people who want to turn their lives around and hope to get rich quickly, and they will also join this market.Of course, it cannot be denied that many people think the stock market is too simple before they enter it.
Only after really entering the market do they find out that the market is actually very difficult, with many more pitfalls than imagined.
Just like in every profession, success requires effort and sweat, and it is even more so in the stock market.
The capital market is a place where the sickle is wielded, and it is not just about hard work that can solve problems, but also about cognition, reflection, summary, and enlightenment.
If you can't be superior to others, then you are destined to become one of the 90% who can't make money.
To be honest, in the stock market, it is indeed the smart people who make money from the foolish, and that is absolutely correct.
Don't blame the cunning and deceit of all kinds of capital, nor complain about the information asymmetry among everyone.
Some people are born with a silver spoon in their mouth, and some people are destined to start from the bottom.
Since we are all small investors, we should be aware that the probability of eventually becoming a top investor and standing at the top of the pyramid is actually very low, and the road ahead is also very bumpy.
The myths in the stock market are not replicable, with only a few tens of people emerging from 200 million stock investors, accounting for a few millionths.It is also important to understand that part of profit and loss depends on strength, while another part relies on luck, the era, and the dividends of policies.
I believe there are many people who have entered the stock market in the past two years and are still confused to this day.
Because the past two years have been a solid bear market, or since the beginning of 2021, it has entered a bear market.
Therefore, there are countless people who have lost money in the stock market in the past two years.
Some people have been on the road to breaking even after entering the market, never seeing money, only seeing a string of green numbers.
But the stock market is not for our eyes, nor is it for our bodies.
Since we have chosen to come to the capital market, we are destined to fight with capital, looking for ways and methods to make money.
Actually, a bear market is a very good experience.
At least being able to withstand a bear market, there is nothing worse than this.Here, it is essential to mention a few points that are extremely important.
1. Losing money is not the core issue; the lack of growth is the real problem. It is common to lose money in the stock market, but the key to not making money is not because of the losses, but because of the absence of growth. There are so many pitfalls in the stock market, and falling into them is already innumerable, but what's more terrifying is falling into the same pit repeatedly. Most people who can make money in the stock market are not because they are particularly formidable, nor because they have never lost money. It is because they have grown in the market, they know how to reflect, they know where to look for their mistakes, and they try to correct them as soon as possible. If you are more confused now than when you first entered the market, it can only indicate that you have not grown in the market, which is really dangerous.
2. Believe in the cycle of the market, believe in the power of cycles, and believe that there are patterns in the market. Since you have entered the market, you should believe that there are opportunities to make money in the market. Don't always think that the market is falling endlessly; there is no market that only falls and never rises, only the cycle of time and cycles.Judging by the cycles and history of stocks, the market has ultimately chosen to be reborn from the ashes every time.
When you feel particularly desperate, study the patterns of history instead of complaining and grumbling; the way out is written in the past.
If you no longer believe in even the most basic things and see only unfairness everywhere, it's really time to leave the market.
Because everyone is looking for patterns to make money, but you have neglected the patterns and tried to make money from market news, which is a big mistake.
3. You should fix your trading direction and strategy, instead of always being on the road to trial and error.
Your trading strategy should never change constantly, otherwise, you will never go far.
If you want to do short-term trading, then learn the tactics of short-term trading.
If you want to do medium to long-term trading, then adopt the investment strategies for medium to long-term.
Focus on a point, penetrate the trade, and establish your own trading model, which is the key to success.
Moreover, regardless of right or wrong, only by repeating the same trading pattern can you find the parts that need to be corrected in this trading pattern, and slowly optimize and adjust.4. Do something, but not everything. Don't try to make money from every opportunity, or you may end up with nothing. There are too many ways to make money in the stock market, but no one can make all the money. It's like there are stocks that hit the daily limit every day, but you can never catch every one of them. The worst thing is not losing money, but being completely clueless and chasing gains and cutting losses without any direction. There are many patterns in the stock market for making money, but you can never make all the money; you can only focus on a direction that you believe is correct. The more you give up in the stock market, the greater the probability of ultimate success. Never waver. Some money earned by gambling with risks is better left unearned.
5. When encountering difficulties, look for ways out and always maintain the right mindset, which is the key to success. Stock trading is undoubtedly a tough journey, full of challenges. But the key to success is actually the mindset.The capital market will knock you down time and again, but not everyone can stand up, or rather, stand up positively.
When you lose in mentality, you are completely defeated.
The reality is that no one with a collapsed mentality can ultimately achieve any great success in the stock market.
On the contrary, many successful people have actually experienced setbacks.
Several famous speculators, including the chief helmsman, have all risen again after losing to the point of being a dog, and what is actually needed is resilience.
The most difficult period has actually passed, and when there is an opportunity to welcome spring, never give up.
Treat the setbacks in the stock market as stepping stones for your future success, and you may be able to go further.
Since you have chosen to enter the market, you should strive for success, instead of complaining about the world, and capital will not sympathize with you.
Of course, those who are aware of the situation are heroes, and choosing to leave the market is also another choice.
The stock market is also a besieged city, both inside and outside are very crowded, and you who may still be confused at the moment, have you made a choice?
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