Folks, Don't Leave

There are risks in the stock market, so investment needs to be cautious. In fact, this is not an empty talk, because the first element of the stock market is risk rather than profit, and learning to deal with risks is more important than learning to make profits. The reason why many people suffer huge losses when they enter the stock market is that they do not have a deep awareness of the importance of risk, and thus fail to establish an effective risk control strategy. In this regard, Charlie Munger's thinking model is worth learning. Munger said: If you want to understand how to get happiness in life, you must first study how life can become painful; to study how companies can become stronger and bigger, you must first study how companies decline; most people are more concerned about how to succeed in stock market investment, and Munger is most concerned about why most people fail in stock market investment. We are all ordinary people, we are not stock gods, so we cannot risk our lives to speculate in stocks. We must manage risks well, keep empty positions, and at the same time need to continue to learn and improve our cognition. The money earned in the stock market is the realization of cognition. Anyone who knows how to invest knows that risk is directly proportional to return. The higher the return, the greater the risk. It is easy to fall into a trap if you blindly pursue high returns, so you need to be cautious when investing. Investment and financial management cannot just focus on the high returns in front of you. The safety and stability of funds is the truth of investment.