An investor from a layman to gradually explore, hone, and finally become a successful investor, he must go through the study of theory, the summary of lessons learned, the psychological long-term struggle after the formation of a steady optimistic, self-confident mentality, guard against arrogance, guard against impatience and not greedy.

1. Theoretical learning stage (introductory stage)

When investors first stepped into the securities market, they studied diligently as a "primary school student", and learned relevant professional knowledge and experience through professional books, newspapers, the Internet, television, and explanations from friends and professionals around them. In the stock operation, he rarely has his own opinions, the stocks he buys are generally recommended by stock commentators on TV or introduced by friends around him, this stage of psychology is mainly manifested in the eagerness to make money, anxious and panicked, no opinions, more than enough and not enough, in order to make money, in order to get rich, he does not hesitate to take all risks, chasing up and down is his forte. Rushing to find a way to make money, this process generally takes 6-10 months, and investors with low education can take longer. During this period, he suffered a lot of losses by following the advice of others to buy and sell stocks.

Second, the self-isolation stage

After the first stage of studying, honing, and summarizing, he quickly found the so-called "secret to making money", this so-called "secret", which is generally a few indicators plus volume and price analysis and some breakthrough patterns with the characteristics of bull stocks, which are introduced in these books and are relatively easy to grasp at most. Most investors in the market will basically know this, but only a few people will be proficient in it. These indicators follow the stock price trend closely, relying on them to operate for a certain period of time, there are many short-term success chances, and sometimes you can even buy at the lowest point and sell at the highest point.

Therefore, every time the operation is successful, he has a great sense of accomplishment, and his talent has finally found a stage to be displayed. I "made it"! So I got carried away with confidence, impulsiveness, vanity, and even arrogance. He recalls that when he first entered the market, the people who had recommended stocks to him made mistakes repeatedly, which strengthened his self-confidence and belief that he had to make money on his own, and that he thought he already had the ability to make money. Whenever the people around him make mistakes, or the famous stock critics make a few mistakes, but he judges correctly, which makes him more and more able to believe in himself, and more and more closed himself, more and more worship of his own indicators, and is surprisingly picky about his peers, often jealous of others' right, laughing at others' mistakes. There is only a trace of respect for foreign monks. The people around him are "white-skinned".

In terms of operation, frequent operation, no food or drink can be no stocks, no stocks in a few minutes or stocks that you are optimistic about have not been bought, and there has been a sharp rise, at this time the heart is as uncomfortable as a cat scratch. Moreover, most people like to operate with a full position, and show off everywhere when they buy stocks that have risen sharply, or be proud alone; When you buy a stock that has fallen sharply, you are annoyed and frustrated, and you are either in a state of great joy or great sorrow, or you are in a state of small joy and sorrow.

He really moved his truest feelings, at this time his relationship with the stock market is like a lover in love can not be separated for a day, as soon as the market opens, you must look at the market trend, and you can do anything after the close is not to look at the market trend. When buying and selling stocks, some are very careful about the price, the buying price must be near the lowest markup, and the selling price must be near the highest price. And some are still chasing the ups and downs, chasing the hot sectors of the market, and he likes to operate with full positions.

The word "make money" is almost always in my mind, but the concept of loss and risk is very vague. Operational performance is either a big profit or a big loss.

The second stage of psychological change is from a victim who listens to the deception of others, to an open-minded and diligent person—eager to regret--- complaining--- self-confidence--- conceited (not admitting defeat, not convincing anyone), --- arrogance---- joy and sorrow. And so on and so forth.

In terms of learning, since mastering a certain theory or a few indicators, I have been in a state of self-containment, self-confinement, self-isolation, and it is difficult to accept the ideas of others. I feel that I am almost the first in the world, and I continue to "preach the scriptures" to others. When you fail, you are very frustrated, and you are unwilling to admit defeat, you always have to find a lot of reasons to excuse yourself, or you must find out the mistakes of others, and say them in public (or in person), psychologically: I am wrong, you are also wrong, he is also wrong, everyone is wrong, I am "not" wrong, and I fall into the circle of logical errors. This kind of numbness of not admitting defeat is extremely strong. Once you make money, it is your own credit, and the loss of money is almost always caused by others constantly interfering with you or being deceived by the illusion of other events. At this time, his knowledge of the stock market will not exceed half of the total knowledge of stock market investment, that is, half a bottle of vinegar.

In this process, his mind is numb and rigid, frequently buying and selling operations, testing his predictions, judging the results, and constantly regretting and complaining when he is happy and sad, and it is a pleasure for him to soak in the stock market all day long, because it is a game that he has exchanged for his own money, and the operation is an exciting game.

The second stage requires at least 5 years of training, and some even more than 10 years, and it is the most difficult stage for him to succeed, just as difficult as the Red Army's 25,000-mile "Long March"! Investment losses are also the most devastating, with losses of hundreds of thousands in the stock market or millions in the futures market. Because he wants to get rich, but he doesn't know how to control the risk. Blind self-confidence, conceit, self-isolation, and numbness of the mind hindered his progress. It wasn't until after the heavy losses that he was awakened.

In the future, he has three ways to go, one is to leave the stock market in despair; The other way is to reluctantly and willingly obey the leadership of the "master"; The third way is to take a break from yourself for a period of time, and then start to reflect, learn again, and rebuild yourself (there are only a few such investors).

3. Re-learning, reflection and summary stage (master stage)

After several years of repeated tossing and turning of great success and failure, and the final result was a big failure, he finally began to wake up, realizing that his level was still not good, and how naïve his previous behavior was! So, I started to learn again, and this time I learned systematically, including various analysis methods of technical analysis, fundamental analysis methods, investment portfolios, risk control, and so on. Sum up the lessons and lessons of the past and integrate theory with practice.

In terms of mental cultivation, he made rapid progress, changed arrogance to humility, and gradually overcame greed and fear. No longer moody, mood is basically stable. In the face of profits and losses, you can deal with them calmly, no longer be disturbed and confused by others and illusions, and you will not have great emotional fluctuations in the rise or fall of the market, no longer be greedy for merit and profit, no longer be anxious and fearful, no longer show off, be able to recognize your own shortcomings and gradually change, be humble and studious, and strive to find a long-term winning operation method.

However, the ability to control oneself is not strong enough. In terms of operation, this stage is mainly to learn new theories and summarize past lessons and lessons, not to operate frequently, and not to have large fluctuations in performance, basically maintain a state of small profits or small losses. The most important thing at this stage is to cultivate the mentality, and secondly, to systematically master various theories and analytical methods and techniques, and combine them with practice. This stage takes about 3 years. At this time, he is just like an ordinary martial arts master, under normal circumstances, he will not be defeated by his opponent, and there are many chances of drawing or small losses and small wins. If he encounters a successful master at this time, he will take many detours, and the time required to succeed will be greatly shortened.

Fourth, the success stage.

After several years of study and training, the theory mastered is rich and systematic; Able to organically combine unforgettable lessons with theories; In terms of mentality, the mentality of impetuousness and lack of patience, emotional instability, greed, fear, competitiveness, jealousy, conceit, and frustration has basically been removed, and they can truly not be happy with things, not sad with themselves, and can unambiguously and firmly control their desires. Able to organically combine technical analysis methods with fundamental analysis methods.

Put risk control in the first place in operation. Found a trading system that works. Truly achieve the unity of knowledge and action, and achieve long-term and stable profits.

The most important thing at this stage is to grasp the mentality. Just like the master of the Tao in the martial arts, he is proficient in all kinds of martial arts, has high moral cultivation, and his high level depends on the "idea" in his state of mind rather than martial arts.