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If you want to be a mature investor,you must avoid “gambling.”

22 October 2009 189 views No Comment

Why investment needs to “gamble“? Because of expectations of short-term assets can be added quickly. I also believe that investments in securities once the “gambling” occupied a lot of ingredients, I think that the success or failure of each investment is decided by the luck.  But after careful observation, careful reflection and its own experience, I realize that if you want to be a mature investor,you must avoid “gambling.”

The differences between stock market and  a casino are: a participant of casino can only be called “gambler” who is pure “speculators”, the “win” the probability is also constant for small probability events. Therefore,in the long term the gambler has to use all his money up inevitablely. The stock market is different, with the development of the market and the   improvement of the management mechanism, investors invest in the concept of maturity, although the participation contains some of the “speculators”, but there are more “investors.” Stock market cycles in different and specific time to show the probability of winning or losing is different is the change in the “bull market”, the “win” on the probability of becoming a big event, we see that the “bull market” in the over all is “God Unit”; in the “bear market”, one of its “lost” the probability and intensity of even more brutal than the casino.

On the other hand, we rarely heard of in terms of investment by “gambling“,it had a great success, but some in the stock market has set a long-term investment philosophy, investment in the use of the correct method,and at last they have made a success. “Investors” has a great probability of winning, and its intensity is also enough to fundamentally change the destiny of their own, and in the investment just to “gamble”,in the long-term investment,  its ultimate fate will not be ideal.

Why are there only a small number of people have made a success in the stock market ultimately?  Because in the stock market,everywhere is full of “temptation.” Almost there are some stocks going up staying everyday, although it is often the number of thousandths, but it is the temptation for investors and the psychological impact on the senses is enormous. Therefore, the most difficult in the stock market is adhering  the correct method of investment, can do long-term investors are few, so, like Buffett the ultimate success of this can only be a small number of people.

In fact, life is full of temptations everywhere, but the specificity of the investment market  decides the performance of its is more distinct, results more directly. Refusal means that the temptation for a harmonious and stable family; for gamblers mean return of a prodigal son; and for investors is whether the ultimate means to survive in the investment world, development, and even brilliant success.

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