In the world of investing, people often get bogged down in analysis, trying to figure out how the market moves through complex data and models. However, years of investment experience have taught me that the core of investment is not as simple as analysis, it is more of a psychological problem.
When we talk about investing, we're really talking about human nature. Greed, fear, hesitation, decisiveness......These human weaknesses are ruthlessly magnified in the investment market. And the real investment masters are often those who can control their own psychology and not be moved by market fluctuations.
My investment journey has also gone through a shift from technical analysis to fundamental analysis, to psychological analysis and academic analysis. Technical analysis focuses on changes in trading volume and volume, while fundamental analysis focuses on a company's fundamentals and macroeconomic environment. However, as I gained experience, I gradually realized that while these analytical methods have their value, they are not the whole story of the investment.
Psychoanalysis, for me, is a more advanced investment strategy. It doesn't just focus on the movement of the market, but also on the mindset of investors. In the investment market, every investor has their own psychological expectations and emotional reactions. Psychological analysis is to seize these loopholes in psychological expectations and emotional reactions, and take advantage of the irrationality of the market to profit.
Taking convertible bonds as an example, many listed companies often do not want to repay the money when issuing convertible bonds. This is because paying back means they have to pay high interest, which reduces their profits. Therefore, when the ** of the convertible bond is lower than its actual value, it is a good investment opportunity. We have seized the psychological loophole that listed companies do not want to repay the money, and made a profit by buying these low-priced convertible bonds and waiting for them to make a profit.
Technical analysis is another investment strategy, but it is impossible for investors to outperform the market average for a long time. Therefore, the best strategy is to diversify ** and hold still. This strategy may seem simple, but it requires a strong psychological quality to actually operate. Because it means that we have to endure the volatility of the market and not be affected by short-term ups and downs.
In China, due to issues such as the shareholding structure and management incentive mechanism of listed companies, listed companies often pursue the maximization of controllable asset scale rather than the maximization of shareholder value or return on net assets. This characteristic makes China's ** very different from that of Western countries. Therefore, when investing, we must fully consider these characteristics and formulate an investment strategy suitable for the Chinese market.
In closing, I would like to say that investing is not a gamble. We should not try to profit from the movement of the market, but should find investment opportunities through in-depth research and rational analysis. At the same time, we cannot ignore the influence of psychological factors. Only when we can control our emotions and not be affected by the volatility of the market can we truly become masters of investing.
In conclusion, investing is a complex and challenging process. It requires us to study deeply, analyze rationally, and more importantly, to control our emotions and maintain a calm mind. Only in this way can we remain invincible in the investment market.