June 18, 2015

Risk education

Today, the broader market fell 182 points, or 3.67%. Chongqing Department Store fell 1.78 yuan, or 4.24%.

Major websites, Q group, the news broke out in a frightening voice, the major media with a gloating mentality reported "China CRRC plummeted by more than 8% and hit a new low since the resumption of trading", and then look back at June 9, the major media hyped up "CRRC" debut": market value surpasses "Boeing + GM"" in a paragraph, "Some analysts believe that the output value of CRRC exceeds 200 billion yuan, in the face of overseas planning mileage of 42,000 kilometers, With a total size of about 2.3 trillion US dollars in the high-speed rail market, CRRC's competitiveness has been greatly strengthened, and the future is bright. At the same time, after the resumption of CRRC, it is expected to continue its good capital market performance, and at the same time rekindle the investment in the primary and secondary markets of the rail transit industry chain. "It's a pity that China Shenche did not continue to perform well in the capital market, but really let everyone feel the so-called risk education, and some people lost their precious lives in this risk education.

In the face of market risks and the flooding of major media education, what kind of attitude should we take to face it?

This reminds me of May 30, 2007, a day that imprinted the pain in the minds of shareholders far beyond the loss of wealth itself, but a kind of horror at the willfulness of the market, and a defiance of all laws. Since then, everyone understands that in this market, the valuation system collapses, because any valuation will be shattered by risk education. People associate this day with the well-known story of "rooster crows in the middle of the night", but to this day, no one knows who Zhou Papi is?

At that time, many stocks fell four or even five times in a row, and on June 5, 2007, when the stock index fell to 7%, the mysterious bottom-buying funds appeared, and the stock index rose 2.63% on the same day, and the stock market amplitude reached 10% throughout the day, but on that day, there were two completely different voices in the morning and evening.

Voices of the morning:

The market is full of despair from bull to bear, and retail investors are filled with the voice of how to keep the hard-earned money earned in the first half of the year. Therefore, many retail investors began to practice the Sunflower Book on this day, and among these people, I was the one who cut off the stock that fell by 40%.

Afternoon Sounds:

After the liquidation, I saw that the stock continued to fall, and the heart was comfortable, at most the market fell by 7%, at this time, there was a shout of the market to push down and start over.

But the good times did not last long, I did not have time to digest the happy emotions, to 11 o'clock at noon, the stock stabilized, and then many stocks jumped up like a rocket, at the beginning, I held the mentality that it may also fall, watching the stock rise, and in the evening, many media are still advising everyone to wait and see, waiting for the end of the adjustment. Find a safe time to go in again. As a result, you were not given another chance at all, and by June 19, the Shanghai Composite Index had successfully recovered the gap of May 30, and the stocks I had liquidated hit a new high. The stock god asked me to look for stocks that rose fast, but unfortunately I didn't find them, and buried the profits in the pre-dawn darkness in vain.

In all fairness, I am grateful for the risk education of the "midnight rooster crow" in 2007, which made me work hard to find myself in the stock market since then, because the innocent and dreamy self was ruthlessly killed by Zhou Peel, so in the next few years, I found the current self that is almost paranoid, and I am a little old and decrepit.

Although I had already estimated the risk last Saturday, I was not the one who shined his shoes at the door of the stock exchange, and I was still here to talk to you without his courage to clear my positions, with some confidence that bordered on paranoia.

I sincerely tell you, it is not important for others to educate you, you must always educate yourself in your own heart, this market, is not you and me such a small scatter can beat, if you want to mix here for a long time, like me, mix for ten years, then, please educate yourself about risks every day, when buying stocks, you first think, if it falls I should do what I do, instead of thinking about how much money I should make.

For the tomorrow of Chongbai, I can't say whether it will go up or down, but I still want to ask at this moment: "If it falls tomorrow, will I still be in the mood to chat with everyone here?" The answer I gave myself was, "Yes!" "Because I've already educated myself about risk, I've envisioned the possible decline today and am ready for more extreme situations.

I have long since lost the dream of relying on the stock market to change my destiny, but I dream that after this bull market is over, I will be profitable, and I will say yes loudly.

Perhaps, this is the legacy of my ten years of risk education in the stock market.