
Traded Value“If you can't stand seeing your assets shrink by 50%, don't expect to get those life-changing returns.”

$Amazon(AMZN.US)Floating profits were halved in just three weeks, which was quite a psychological blow. It's painful, and I must adjust my mindset, otherwise I'll fall into the gambler's mentality of chasing losses, which would be disastrous.
Mindset Adjustment Manual:
"Investors lose more money trying to avoid adjustments than they lose in the adjustments themselves."
"If you can't calmly face your investments falling by 50% two or three times in a century, you're simply not suited for common stock investing, and you'll only get mediocre returns."
Morgan Housel proposed a highly therapeutic concept in "The Psychology of Money": Market volatility is a fee, not a fine.
Fine: A punishment for doing something wrong (like speeding).
Fee: The cost you must pay to obtain a service (like going to Disneyland).
"If you can't tolerate seeing your assets shrink by 50%, don't expect to get life-changing returns."
Premeditatio Malorum (Premeditation of Evils)
Imagine your floating profits dropping to zero, or even losing principal.
Ask yourself: Even if this happens, will your life be completely ruined? Are your health, family, and skills still intact?
Compare: Compared to that imagined "disaster," the current reality of "still having 83% annual profits" is like heaven. This comparison can instantly shift you from greed to gratitude.
Forgive yourself: "I can't predict the future. I made a reasonable decision based on the information available at the time. I won't blame myself for things beyond my control."
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