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Buffett's senior apprenticeRecord the second halving
Recording the second halving
Last week happened to be the time to return home for the Chinese New Year. Because I brought my girlfriend home this year, I mostly didn't have time to watch the market when I returned. I didn't expect the panic after Amazon's earnings report to be so great, falling for nine consecutive trading days. Combined with rxrx, which I bought following the trend earlier, my fully invested account has lost 52% of its principal as of today. My mood instantly hit rock bottom, I lost interest in everything, and my emotions were written all over my face. These three days, the market just happened to be closed. I sent my girlfriend home and took the time to reflect deeply on myself.
1. The most important thing right now is definitely to regain confidence. If I don't even think I can do well myself, I should clear my positions and exit the market sooner rather than later, leaving some money to go home and live on.
2. The main reason for this huge loss was heavily buying options on AMZN and rxrx, essentially following the big players in the community. First, it's certain that the big players in the trading market have already screened a round of stocks, and they've put their own real money into them, so their stock-picking vision is definitely better than us retail investors who have no information or research. However, their timing of trades and position control are far better than what we can do ourselves. Therefore, remember not to blindly follow the trend; you must have your own research and understanding. You can look from the shoulders of others, but you cannot just blindly copy their investments.
3. This second halving actually lost three times the amount of the first halving because floating profits in between led to overconfidence and continuous deposits and position additions. Because I wanted to make big money, fast money, it has led to significant mood swings now. I've seen many big players' trading records, and they all say the path of trading is very difficult for everyone. On the road to becoming a demon or a Buddha, you have to be halved countless times and break even countless times. Some people eventually fall down, and only a very few can make it through. I hope I won't fall down. To avoid falling down, I must be good at summarizing, thinking, following rules, and executing. I must remind myself to build my own system and abide by my own rules.
4. The next step will be to gradually reduce positions this month, bringing the capital down to 50,000. It will serve as the "practice money" for my system. If it successfully doubles to 100,000, I won't need to deposit more funds, just manage the risk control well.
5. Do one trade, understand one trade. Go and understand the target company's business model and future development. This is the key factor in deciding to buy or sell a stock.
6. Don't think about making fast money; it comes fast and goes even faster. Until the moment you withdraw funds and close the account, longevity is the real king.
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