The timing and mentality of investing in the market

Many books that recommend long-term investing say don't take any chances.

Suppose you lose 10 yuan of 100 yuan today, leaving 90 yuan. That is, if you lose 10%, if you want to use the remaining money to earn back the principal, you need to achieve a profit of 11%.

In a more exaggerated situation, if you want to get back 50% of the lost principal, you need to double the remaining principal.
What does this represent?

As mentioned before, "risk and profit coexist", the pursuit of higher returns requires higher risks, which means that the difficulty of rising and falling with the same amount difference is not the same.

The above are all based on the point of view of "the price of the stock held / increase in price", and think about it from another angle:
If you are empty-handed watching various stocks rise and fall, decide whether to buy it?

A stock that has fallen by 50% if it rises back to its original level means that it has risen by 100%! And if the reason for the sharp drop is a sudden external factor, it is very reasonable and possible to return to the original price after the impact.

It's a reminder of the benefits of not putting your money in too early, and not taking more risks than usual if the time is right.

Of course, it is more important to understand that it is impossible to buy at the lowest point. Since the initial goal is to wait for the price to rise back to the original price and then sell it, it cannot be sold early if it continues to fall in the middle. This is an unavoidable psychological barrier. .

Therefore, compared to the "buy at any time, don't sell" strategy of some stock certificates, I think the key is to save enough money first, and decide to buy according to the current price and the general environment, or wait for more news. judge.

Thinking carefully before I do it, and staying calm after I do it, is what I hope to achieve.