Human nature is the worst enemy of all investing

Human nature is the biggest enemy in all investment. Whether it is investment in the primary market or the investment in the secondary market, it is actually a process of playing a game with oneself rather than a game with an opponent. The biggest opponents in this game are greed and fear.

After I read the book The Big Short recently, I also went through some records of the parties involved. A particularly impressive passage is that when everyone despised, mocked and slandered Paulson as a short seller, when he dealt with it insanely, he Can stick to his own judgment and withstand pressure; another short-seller, what is his name, also firmly short-sell when the market is crazy, and even when investors ask for redemption, he can write a letter to investors saying, To protect your rights, I forbid you to redeem. At this time, it must have been an extremely difficult struggle against the deep fear of human nature. Few people can persist, and few people can persist. If facing huge losses can resist fear, then facing profits can resist It is also difficult to live with fear.

I have a very good friend around me. In fact, many people say that he is lucky. He accidentally invested 4 million in Vipshop and made several billions. He thinks it is all luck. Personally know that he is definitely not a huge profit brought by luck. Because he invested in Vipshop when it was first listed, it was listed with blood. At that time, the listing price of Vipshop was only 6.5 US dollars, and even fell below 4 US dollars, and then began to surge 70 times all the way, that is to say, you are simply in the second level. When you buy Vipshop in the market, you also have at least 70 times the income, but how many people insist on not reducing their holdings in the face of such a high floating profit? Many people can't do this. After making a little money, they face the risk of losing their profits and leave.

Therefore, the core reason why most people lose money in stocks is actually that they dare to lose money and dare not make money. Therefore, there are always a small number of people in this world who make a fortune, because there are few people who can do this until they earn dozens of times and still hold firm and unshakable things. The more fluid things are, the harder it is to resist human nature. Human nature is In this way, because it is very difficult to control the itch, why have we not made much money in the secondary market for so many years, it is all made in the primary market, the core reason is that the primary market makes us passively profitable by locking up liquidity . After investing, you can’t move. It doesn’t matter if it goes up or down. Anyway, you can’t sell it. When it can be circulated one day, you will make money. The liquidity of the secondary market is very good. It goes up and down every day, and it is too difficult to test human nature every day. It's like there's a beautiful woman sleeping next to you, you have to endure the best time to put her to sleep. There are a few people who do it, and most of them must be asleep. The things that test a man's humanity the most in the world: the first is money, the second is power, and the third is beauty. There are very few people who can resist human nature. Many successes are not casual, and there must be an extremely difficult and complicated process of facing the test of human nature behind them.