If a worker wants to do his job well, he must first sharpen his tools. How to become a top trader?
I have summarized three points from my own practice:
1. Improve your life cultivation and overcome the weaknesses of human nature.
There is a famous saying in the stock market, stock trading is like being a human being. To get rich by stock trading, you must first learn to be a good person. Stock trading and life may seem unrelated, but they are not. Stock trading is a great exposure of human nature. In the stock market, I think the shortcomings that people are most easily exposed are as follows.
1. Greed.
In a market economy environment, people often behave insatiably, even ungratefully, and do whatever it takes to make money illegally. In stock trading, some investors further amplify this shortcoming of human nature and display it vividly. Typically, the funds in one's account have appreciated by more than 20, 50...300, but they still don't give up, refuse to close their positions, and want to earn more after they have earned more. I have no objection to you earning more. You can earn all the money in the world by yourself. That is your ability. I and the people all over the world congratulate you. But is it possible? If you realize that in the context of how difficult it is to make money in all walks of life, without any effort, the funds in your account will appreciate by more than 20, 50...300 with just a flick of your finger, you should be satisfied. The final result of many investors is often tragic and trapped. The most fundamental reason is that they are too greedy. Therefore, if investors want to get rich by stock trading, they must overcome the shortcomings of human greed. Those who are content are always happy, while those who are greedy are always sad.
2. Inertia.
If there is no pressure to survive and compete, people tend to fall into a relaxed life circle where they are greedy for pleasure and not enterprising. When Gates, the richest man in the world, first promoted his computer, he was turned away and even ridiculed, saying that he had dropped out of school, so what other high-tech products could he develop? When we see a glorious moment when a sports athlete stands on the podium holding a trophy, outsiders cannot understand the price he or she has paid for it in life. Therefore, no matter which industry or person wants to "get rich" and win the gold medal, they have to pay the cost of "tears and bloodshed". But how many investors learn securities knowledge with their head hanging on the beam and their heads piercing the stocks? As for the economic and financial knowledge related to the stock market, I know nothing about it. After getting off work from the stock market at three o'clock, it's basically leisure and entertainment. Therefore, if you want to get rich by stock trading, you must overcome the inertia of greed for pleasure and lack of progress, and you must spend a hundred times more energy than ordinary people to learn and study various policies, knowledge, skills, etc. of the stock market. As the saying goes, no matter how hard you work, you will reap what you sow; if you sow melons, you will reap melons; if you sow beans, you will reap beans.
3. Gambling.
Many people like to gamble, try their luck, and win big prizes. Although the probability of winning is extremely low, they still enjoy it. This fully reflects people's speculative and gambling habits. This is also natural, otherwise the world's casinos, lottery sales, prize promotions and other similar business activities would have disappeared long ago. But we must stop it, and we cannot rely on gambling, luck, and lottery to get rich. Stock trading itself has risks. In a sense, it has a certain element of speculation and gambling. For example, loss-making stocks have the greatest risk, but once they turn losses into profits, their stock prices will skyrocket. Therefore, speculation in loss-making stocks is highly speculative and gambling. This is one of the reasons why the stock prices of loss-making stocks are sometimes higher than the stock prices of stocks with good performance. You may encounter a little luck, but we must not rely on speculation to buy or sell stocks.
4. Dependence.
Mainly manifested in: Lack of independent opinions in doing things, hoping to rely on others' advice and enjoy the results. Some investors often do this when trading stocks. Buying and selling stocks mainly relies on inquiring about news and stock reviews, with very few own analysis and opinions. It is necessary to communicate and exchange information with others in a timely manner and listen to stock reviews, but buying and selling stocks is an act of making money. It is unrealistic to rely too much on others. There are not many people who can serve you for free now. Stock reviews say more wrong things than right things. The grapevine is diverse. Therefore, if you want to get rich by stock trading, you must overcome dependence and put yourself first.
5. Scattered.
Human behavior is highly arbitrary, egoistic, and scattered.
Therefore, the government must formulate relevant laws, regulations, and rules and regulations to regulate and restrict individual behavior. For example, when you work in a company, there are various rules and regulations to control you, and there are leaders and colleagues to supervise you, so you cannot go your own way. But the environment for getting rich by speculating in the stock market is different. You are a loner and your own leader, and your undisciplined habits are fully exposed at this time. Without discipline and supervision, you can be said to be arrogant and do whatever you want when buying and selling stocks. But at this time, hidden dangers appeared unexpectedly. The main reason is that you have not formulated a strict discipline for buying and selling stocks. Even if you have formulated the discipline, you have not implemented it in a timely and conscious manner because there is no one to supervise it. As a result, you have failed. Therefore, if you want to make a fortune by stock trading, you must overcome people's loose habits. When trading stocks, you must establish disciplines, especially profit targets and stop loss boundaries. You must also supervise yourself and enforce the law strictly.
6. Love to brag and avoid criticism.
Mainly manifested in: when encountering things that go well with one's heart, one's eyebrows will shine with joy, one will forget about oneself, and show off to everyone; when encountering setbacks and difficulties, one will have restless sleep and food, frown, nag everyone, and blame others. This human shortcoming is quite prominent in stock trading. For example: after making a profit from stock trading, he would make a mess and brag about his performance to everyone. After the failure of stock trading, his mood plummeted, and he became angry with relatives, friends and colleagues. When he met stock traders, he would chatter endlessly. Moreover, they never sum up the lessons of failure, and they never take the initiative to find the reasons for failure within themselves. They never criticize themselves. Instead, they blindly blame others and attribute all the reasons for failure to stock reviews, policies, market makers, etc. I believe that as a stock investor, if you want to make a fortune from stock trading, you must resolutely overcome this bad habit of liking to brag but not criticizing. Regardless of profit or loss when stock trading, it is best not to nag everyone, but to be calm and thoughtful. If you can afford to win, you can afford to lose. Especially when you suffer losses, you should look for the reasons within yourself, do more self-criticism and self-reflection, and do not put all the blame on others. Of course people have other shortcomings, but the above points are more prominent among people who want to get rich by stock trading. If you don't pay attention to restraint and overcome them, it will be very detrimental to your lifelong stock trading. In fact, you can also discover your own human shortcomings through stock trading, and then overcome them one by one to continuously improve your self-cultivation. If your level of stock trading is stagnant or even always losing money, it means that you still have a gap in overcoming the shortcomings of human nature. Therefore, we must understand this truth: to get rich by investing in stocks, you must first learn to be a good person. In the process of stock trading, the weaknesses of human nature are profoundly reflected. On the contrary, when you overcome the above shortcomings, your stock trading level will improve and your wealth will grow.
2. After long-term exploration, find a set of operating methods that suit you
Everyone has their own strengths, and only by playing to their strengths can they be invincible. Survival in the stock market does not depend on how much money you make every day, but on how long you can survive in the stock market. Steady returns are the guarantee of unbeaten success. To achieve steady returns, you must establish your own set of effective transactions. Method, this process is a long process. If you have enough funds, you can slowly cultivate it in actual combat, because the training process is the process of paying tuition.
3. The key to how much money you can make depends on your tolerance and ability to endure hardship.
There are always opportunities in the stock market. Many opportunities to make money come to you automatically every day. Can you seize them? Peter. Lynch once said: "It is not brains but endurance that determines the fate of stock selection. It is the endurance to ignore the pressure of the environment and persist until the investment is successful. No matter how smart a sensitive investor is, he often cannot withstand the inadvertent blow of fate and is driven away. out of the market.”, “Investment is 99% sweat and 1% inspiration.” , "Looking for good stocks worth investing in is like looking for bugs under rocks. If you turn over 10 stones, you may only find one, and if you turn over 20 stones, you may find two." These words hit the nail on the head. The qualities that a successful investor should possess.