Teaching You to Trade Stocks 3: Your Preferences Are Your Death Trap!

2006/6/9 17:03:48

The World Cup is coming, and discussing stocks during the World Cup is a rather dull affair. Moreover, everyone in the world knows that around the World Cup, stock markets almost always plunge significantly. This common knowledge, although no more worthy of being common knowledge than all the common knowledge about so-called market makers, is at least interesting — unlike the tedious topic of so-called market makers. One more thing worth adding: at least football has handsome men, whereas among the numerous so-called market makers I've encountered, it's hard to find one who doesn't look like a crooked melon or split date. This is genuinely the case, not a joke.

But your preferences are your death trap! To survive in the market, the first rule is to eliminate all preferences within it. The market's temptations always ensnare you through your preferences and lead you to death. What the market requires is a fleeting encounter, not a lifelong romance. Things like "forever and ever" have nothing to do with the market. The only thing in the market worth being "forever" about is making money. The sole purpose of anyone who comes to the market is to make money. Anything unrelated to making money is just noise.

You must understand: any reason that makes you buy a stock is not because the stock is somehow great or was hyped up to be great — it's because you intend to make money through buying. A stock that makes you money is a good stock; everything else is noise. Therefore, any preference in the market is a trap luring you astray. You must see through each one, then wash your heart clean and start anew, before you can survive in the market.

Of course, being able to clearly see the market traps around you is only the first step. Going further, you must learn to use market traps to make money. When you want to buy, a bear trap is your best opportunity. When you want to sell, a bull trap is naturally your paradise. This market never lacks people who sell at the very bottom and buy at the very top. Nothing in this world can make everyone profitable — even in the biggest bull markets, many people suffer heavy losses. And one's behavior in the market is like the process of cultivating a supreme martial art: whether you ultimately succeed still comes down to each individual's wisdom, temperament, talent, and diligence!

(To be continued)