Investment security strategy - preparation for transactions

Rest and wait

Rest and wait is an active state of defence. Many investors do not understand its inner meaning: the cost of defending by doing nothing is the lowest of all safety measures. We do nothing because: (1) the mind and body rest and trading summary, (2) the market is not big or cannot judge the market, (3) the evolution of the market has entered a dangerous zone, and (4) the timing of the implementation of the strategic plan.

The curve of capital equity is similar to the fluctuation pattern of price. The phased growth of capital is not a difficult task for many people, and it is not easy to avoid the sharp decline of equity. However, only by avoiding the withdrawal of capital can we realize the appreciation of capital and achieve the compound interest effect of capital rolling. "Not" may be the best way, which is a kind of abandonment, a manifestation of obedience and respect for the objective market. It can be seen that learning to rest and wait is an important part of deciding whether an investment can win.

We need to understand that the market is the protagonist in the change of the market, and the performance of investors is just an inconspicuous supporting role. There should be enough time and space for the market, not busy yourself; we should wait for the market to give a clear direction, otherwise, the busy ending can only be a void.

The crux of the question is: why are people always busy? This is the result of desire. When people keep their eyes on money rather than the market and themselves, they always imagine the occurrence of the market, and hope to seize it rather than lose it. We believe that it is good to be able to mine the market with investment value, but it is more important to be able to detect that the market is not moving, or to admit that they do not understand the market. Because only by recognizing this can we understand the value of rest and waiting.

There is a saying in "Sun Tzu's Art of War": "If there is no way out, the army will not attack, the city will not attack, the land will not be disputed, and the order of the king will not be accepted." The reason for inaction is for the sake of safety and for the service of a big strategic plan, not the immediate small profits or blind moves under the lure of profit.