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What about LegiEX? The volatility of the stock market is very human

Many people know not to do business with friends, because finance tests human nature, and the fluctuations of the stock market test the human nature of investors even more.

One of the hallmarks of the stock market is volatility. In other words, there is no linear increase in the price of a stock. If one stock were to go up one cent a day, everyone would be making the same amount.

A small number of stocks, such as gree, ping an and moutai, can grow faster than the average. The other part is probably synchronized with the society, such as the four major lines and public utilities. Because for society as a whole, they are the subjects, the natural synchronization. Some of them will fluctuate wildly, but you can't increase them by extending the cycle.

What about LegiEX? The volatility of the stock market is very human

The volatility of these days is bound to convert some people. In 2013, several colleagues and I pooled our money in an account, which I operated. In the first half of 2013 to 2014, the stock market was stagnant and there was no hope in sight. In the middle of 2013, there was a sharp decline due to money shortage. Human nature can not stand the test of the ups and downs. Before the 2014 bull market started, several colleagues called it quits. At that time, the account fell slightly, I personally paid for everyone to wipe flat, bought your share.

Last year, a sister I know, took tens of thousands of yuan, let me help to watch, I bought China merchants bank and vanke, did not look at the account, half a year passed, have earned time, but this fluctuation should be wiped flat or micro loss. Today, the sister sent a message that she had sold the company and wanke. Human nature is doomed to be defeated by fluctuations.

What about LegiEX? The volatility of the stock market is very human

I'm not saying that the stocks I bought are necessarily going to be any good, including this one. How the virus developed, as a human being, is really hard to see. The last article "fluctuation is the normal state of life, do the right thing, leave the rest to fate" also said, do not do the right thing, you can get the harvest. I just want to say that in the history of stocks, for every wild fluctuation, it must be the majority of retail investors who want to gain excess returns through volatility.

What is to want to obtain excess returns through volatility. For example, when people are uniformly bearish, they always want to sell first and pick up at a lower position. For example, in a major event, to grab those obvious beneficiaries, such as this mask, medical.

I have to admit that in this extreme situation, it is possible to get very quick returns. Maybe some medical stocks have risen by 50% in a few days. In fact, for most retail investors, volatility represents not earnings but injury. Because short-term fluctuation is great test to human nature, violent psychological fluctuation, can let you be in a dilemma, may gain 50% in a few days, may also lose 50% in a few days. Just like we do in a casino, if you win a couple of games in a row, your mood will be so high that you will continue to gamble until you lose your principal. And those who didn't win in a row were more rational.

Well, the volatility of the stock market is very human. In the end, let me admit it. I say volatility because I don't have the skills to handle it.