Reading is not only a quest for dialogue with the outside world, but also a search for external learning to understand the company, industry and social development; It is also a practice of self-growth again and again, constantly perfecting the mind and iterative cognition inward. Adhering to the principle of enlightenment through reading and enlightenment with good books, Penghua Fundamental Investment Reading Club is committed to linking fund managers and investors and conveying the way of fundamental investment.
Enlighten with reading and enlighten with good books
Think about the way to invest fundamentally
Penghua Fundamental Investment • Reading Club
See you again
The guest we share in this issue is:
Penghua Fund Multi-Asset Investment Department
Bond researcher Xinrong Li
The golden sentences in the book are shared
1. The most savvy traders (people who think according to probability) have the same negative energy about the meaning of mistakes as ordinary traders. But as long as they normally define trading as a game of probability, their emotional reaction to any trading outcome will be the same as the average trader who predicts heads to the upside when they toss a coin, only to see the reverse face up and make the prediction wrong.
2. The most astute traders do not have the slightest sense of hesitation or conflict when they engage in trading. And when you admit that the deal failed, you will have the same feeling of no hesitation or conflict. You can even admit a loss to close the deal without feeling emotionally sad at all. In other words, the most savvy traders don't lose discipline, focus, or confidence because of the inherent risks of trading.
3. Outstanding traders know that internal discipline or mental mechanisms are important to counter the adverse effects of ecstasy or overconfidence that accompanies a series of trading profits. If a trader does not learn how to monitor and control himself, making a profit can become extremely dangerous.
4. Unless you put the necessary effort into knowing what will happen next, or every transaction must be required correctly; Otherwise you can't think right. In fact, the degree to which you think you "know", "assume you know" or "need to know what's going to happen next" is equal to the level of failure you failed to trade.
Quotes to share
Hello investors, I am Li Xinrong, a researcher at the multi-asset investment department of Penghua Fund, and I am honored to recommend a book "Trading Psychological Analysis" to you today. This book is a classic book on trading psychology that is recommended by many seniors in the industry. The book explains in very simple language how to establish the right psychological framework for long-term trading and continuous profits. The author starts by explaining the root causes of trading behavior, then explains the various problems faced by traders, and finally explains what actions should be taken to get on the road to confidence.
I learned a lot from reading this book, and I learned to avoid getting caught up in what I thought the market was going to do. I also learned to use the principle of probability to look at the direction of the market, research and learning is to try to improve the probability of judging the market correctly, but if the market trend does not match the prediction, do not need to be irritable, should calm down and think about what factors have been ignored, in the current position should continue to adhere or retreat in time. We don't have any preconceived stance to enter and exit the market, so that we can maintain a free, open and objective mind to grasp every potential market entry or exit opportunity. I believe that investors will have a lot of interesting gains after reading it, and I recommend it to you here.
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