I am greedy when others are afraid, and fearful when others are greedy.

This is a famous saying about investment by the world-class investment giant, Buffett.

What it means is: when everyone is greedy, it means that the market is not far from coming to an end, so I should have a sense of fear and exit as soon as possible to maintain the victory; and due to the long-term continued downturn in the market, When everyone is still afraid to enter rashly, I should enter bravely and obtain good profits.

When is fear? When the price drops all the way, and then you watch your funds shrink, do you feel distressed at this time?

The money you finally earned has changed from 100 to 80, maybe even When we are 60 or 50, many people will be unable to sit still. I always have an idea, should I cut off the flesh? Otherwise there won’t be much left.

This psychology is fear.

However, in the eyes of investment giants, positions should be appropriately increased at this time to lower the cost of holding. Once the price rises, your profit will be much higher than before

Suppose you buy a fund for 200 yuan. At some stage in the middle, it fell to 150. Because you didn't want to lose too much, you didn't sell.

After holding for a period of time, the price rebounded and rose to 240. At this time, you have earned 40.

Is that so?

Another way, use Buffett’s investment philosophy to see if you can earn more?

When it drops to 150, you increase the position, then you hold There are 2 points, the cost is 350, and the average cost is 175.

Sell it when the price rises to 240, get back 480, and make a profit of 130.

Did I earn 90 more than the previous plan?

Some people say, if I increase my position by 10,000 when the price drops, will I make a small profit again? A sum of money?

Wrong, wrong. You are not a professional, nor do you have the ability to predict the future, so I suggest you not to put all your eggs in one basket.

Only by properly choosing the amount of positions to add based on your actual situation and adjusting the holding share in a timely manner can you better control the appreciation of your wealth.

Anyone who wants to get rich overnight or make a fortune in one step is incorrect.

You have to eat one bite at a time, and you have to make money step by step. It's not terrible to lose a little occasionally. What's terrible is not being able to overcome the fear of losing money.

And the most important point is, never borrow money to invest. Don’t be too hot-headed and vote all at once.

Only by adding or subtracting positions in batches can you obtain more passive income.

It is best not to invest funds that you need urgently. It is best to invest money that will not be used urgently in three to five months. To put it bluntly, use your spare money to invest.

In this way, even when the price falls, you will not miss the rising space because of urgent use.

Yes, that's it. Did you get it?