MSFT270115C450000

Later, focus more on the major market indices. Playing the indices may seem to yield less on the surface, but over a few years, it's actually quite stable and profitable.

The reason is that popular stocks are places where retail investors cluster,

and when retail investors cluster, they are easily targeted by institutions with waterfall sell-offs, making it hard to avoid.

For example, Microsoft from 470 to 349. Most people probably couldn't hold on through that process and sold at a loss. It's highly likely to recover in the second half of the year, and then those who sold will just be left watching.

For example, the flash crashes of Dell and IBM. Also inexplicable…

For example, the memory sector, what's happening now, how many Korean families have lost everything in it.

When something is popular, you're reluctant to leave, after all, you made a lot of money before, developed a fixed mindset, and coupled with the unwillingness to accept a small loss. But when the main players' scythes come down, it's just a few cuts, resulting in six months of wasted effort and possibly even a loss.

Unless you're truly the kind of value investor who completely doesn't care about short-term price fluctuations… such people are still relatively few. Of course, looking back at the Magnificent Seven now, it's not so disheartening, right?