1. A mature trader will not give up his career just because of a temporary loss. He will not think he is invincible just because of a temporary profit. Moreover, only losses and profits are not a reasonable evaluation of trading level. Outperforming the market index is. Last year, many major indexes fell by more than 35%. If you only lost 20%, it is a profit and it is great. From the end of the year to this year, many indexes have risen by 50%. If you only make 40%, it is not excellent, but it is equivalent to a loss. This is a Weibo post from 23 years ago. It is still applicable today. Adjust your mentality to outperform the index instead of profit and loss. Make more when you make money and lose less when you lose money.
2. Earn more than the index in a bull market
But fewer than people who add leverage
Volatile markets or bear markets are to make up for it
Because at this moment, the leverage users have huge drawdowns
Far behind the index
What you need to do is to earn more than the index in a bull market
Far less than the index in a bear market
Obviously, it is not something that leverage itself can optimize
In active trading and timing, you still have to follow the following principles
Allocation balance first, industry second, company third
3. Outperform the index itself
In fact, I have basically achieved both bull and bear markets
But considering that Buffett has not entered the market for five years and has not used leverage for his entire life
I am still far behind
The longest I have achieved is to clear my warehouse for half a year and not enter the market for half a year
The longest is almost less than a year without using leverage
Then it really fits the saying
Don't be afraid of the hardships of life
Just be afraid of stopping gambling
Knowing that the market is not good, you will still end up
And you will find various reasons for yourself to end up
So what exactly was Buffett doing in the four or five years when he was not in the market
How to pay attention to the market for such a long time without participating in the market
This feels like you are a normal young man
And then you hug a beautiful woman every night and can't move for five years