Some say that to achieve a profound understanding of life, one must experience significant setbacks or even life-and-death experiences, engage in long-term spiritual practice, read extensively, or have a long history of ups and downs at the bottom of society. I believe these are all about the environment. Even if most people go through all these, they still cannot achieve a profound understanding.

The reason is that they lack the ability to reflect deeply. The stock market is like life; it almost always leads every investor into huge losses. However, those who can deeply reflect on the losses and gain insights are extremely rare. The vast majority of people just accept the losses, and at worst, they just quit the stock market. They don't get anything useful from the losses.

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My insights in the stock market have all come from significant losses or mistakes, and I have reflected countless times. I used to say that my understanding was only one or two points, and that's why. I made the same mistake dozens or even hundreds of times before I realized what caused it.

Once, after losing money in the stock market, I reflected and re-entered the market, only to lose again. Reflect, lose again, reflect again, re-enter, and lose again. In two weeks, I fell in the same place four times and reflected four times. The last time, I reflected for a month before I truly understood why I lost money. My understanding is quite low, right?

Fortunately, I still have some understanding, but most people really have no understanding at all. They don't like to reflect. They can fall in the same place in the stock market thousands or even tens of thousands of times, yet they still enjoy it. For example, many people like short-term trading, but after trading for thirty years, they still haven't made any money. If they had some understanding, they wouldn't have reached this point.

All industries need some talent. People without talent have no meaning in the stock market, even if they work hard for a lifetime. Investing in funds is the best choice for most people. I have had three or four major insights in the stock market.

One was understanding the main force's exit and the market peak. I have talked about this issue in my previous articles. Although I lost money that time, I was excited to run wildly on the road because I thoroughly understood the secret of the main force's exit. Since then, I have never been trapped by the main force. And I have avoided countless market peaks.

What is the market peak? Simply put, it is when many stocks have doubled or even multiplied several times, but most people in the market still look forward to the future market. This was the scene at the beginning of 2021. It was the same when the market was at 5000 points in 2015. Going back further, all market peaks are like this.

The principle is very simple, but people who are in it generally can't feel it. Just like mental patients never think they are mentally ill. Those who chase high at the market peak never think they are chasing high, on the contrary, they think they are doing long-term value investment.The article translates to English as follows:

One is the realization of human nature. I have discussed this issue before. I bought a stock, and no matter how I looked at it, it was good. Later, after being teased by a friend, I realized that I was really optimistic because I held it, and it had reached the point of blind optimism. Since then, I have realized that human nature is the archenemy of investment. The vast majority of stock friends can never cross the threshold of human nature in their lifetime.

Another is the realization of how to hold long-term positions. It was after missing out on N times of the bull stock that I reflected overnight to figure out what I should do in the future to not miss out on the bull stock. There was also a realization of the subtleties of the investment portfolio. I have publicly shared these insights in my previous articles. Unfortunately, the vast majority of friends cannot truly understand.