A-share moment is full of gold, but many people are afraid!

Introduction

Many disputes between people are due to animalistic instincts. For example, a woman, driven by animal instinct, may say a few irrational things. Initially, the man can remain calm and silent. However, as the woman's words continue to escalate, lasting for 10 minutes, and she starts to personally attack him, his parents, and his siblings, the man's rationality is breached, and his animalistic instinct for retaliation is ignited. A fierce argument ensues. The old saying goes, "It takes two to tango." Before, I didn't understand it, but as I grew older, I completely understood it.

Many times, when a hand comes slapping, you can't avoid it. That hand will chase and slap you, and it may even chase and slap you for a lifetime. Therefore, in most cases, two hands will inevitably collide with a "slap" sound!

This is one of the root causes of conflicts between people. The irrational side of human nature makes it easy for people to argue. No one can be completely rational; everyone is a potential bomb. The difference lies in the difficulty of detonation and the power of the explosion.

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All the above are my personal life insights - maintaining rationality and controlling animal instincts is very difficult. Most people, most of the time, we can't do it. Because the survival instinct in human genes often erupts suddenly, causing us to lose rationality.

What should you do when your wife takes the initiative to quarrel with you? Many men want to persuade others with reason. In my opinion, it has no effect. I think the best way might be to run away. If there is an opportunity to escape. The lack of rationality in life can trigger conflicts. The lack of rationality in investment can lead to losses.

Most people can still maintain rationality when their paper losses reach 10%, but when the paper losses exceed 30%, they collapse. Their animalistic instinct is ignited. They start to lose rationality, start to doubt everything, and even start cursing the stock market, economy, and other external environments. The protective instinct of animals makes them never curse their own incompetence. Because it is not conducive to individual survival.

The most interesting thing is that most people don't realize they have lost their rationality when they do. When people are extremely panicked and extremely greedy, if you point it out to them rationally, they will generally encounter fierce counterattacks. The objective and rational articles I publish every day are like this, often encountering curses from people who have lost their rationality without realizing it.

What is human nature? In my opinion, human nature is animal instinct. Animal instinct is beneficial to human survival in primitive society, but it is not conducive to human life in modern society. The stronger the animal instinct, the less adaptable a person is to this society. People who are prone to say "What are you looking at?" and "What about looking at you!" find it difficult to be happy in modern society.The "Mr. Market" in the financial world is actually a manifestation of human nature or animal instinct. The concept of "Mr. Market" was first introduced by the world-renowned investment master Buffett's teacher, Graham. Graham used "Mr. Market" to vividly illustrate the collective behavior of most investors in the market, especially their emotional and illogical nature.

"Mr. Market" provides stock trading prices every day. In reality, "Mr. Market" is full of animal instinct, including retail investors and institutions. People often quote prices emotionally, sometimes excessively fearful, and sometimes overly optimistic. People often make buying and selling decisions based on news events, instincts, or even unfounded guesses.

Truly smart investors can discern the emotions of the majority in the market and use their irrational behavior to obtain lower buying prices and higher selling prices. This requires an understanding of the fundamentals of listed companies, otherwise, it is impossible to determine what price is low and what price is high. This is value investing.

The current A-share market is actually a time when most participants lose rationality. People are overly pessimistic, selling at extremely low prices, leading to a sluggish market and a glut of cheap stocks. In a few years, they will be overly optimistic and buy at extremely high prices. Rational investors should recognize the irrationality of the market, buy stocks of excellent companies in the A-share market when the market is sluggish, in order to achieve excess investment returns in the future.

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