Inverse thinking in investment

Reverse thinking plays a very important role in many fields, especially in investment. Investors with reverse thinking ability can better understand the market and do a good job in investing. This reverse thinking mode can help you avoid the stubborn mistakes of single thinking mode. Reverse thinking in the volatile market can better understand the essence of the market and bring investors the correct investment concept.

In the face of rising and falling stocks and markets, almost all investors will be affected by market fluctuations. People's emotions have a great impact on investment. If this huge influence is combined, it will bring huge fluctuations to the market. The craziness of bull market and panic of bear market are the best manifestations of group psychological emotional influence. No one can predict the fluctuation of the market, but most people keep trying, the result is always dominated by the market, causing the wrong loss of chasing the rise and killing the fall. If we can look at the fluctuation of the market in the opposite way, it will reduce the influence of the market on ourselves, and then make the right decision. It will be considered a good thing to think only about the rise of the market, the more money we earn, but what? Reverse thinking will think that the value of stocks will be lower and lower as the price of buying the same stocks will be higher and higher, so when others buy in the bull market crazily, they will make the decision to sell, which is based on the reason of reverse thinking. Similarly, when no one is willing to buy stocks in a bear market downturn, single thinking will think that buying stocks at this time is losing money, the market is always falling, even if it is cheaper, but reverse thinking thinks that with the decline of the market, the price of stocks is getting lower and lower, the value of stocks is getting higher and higher, no one dares to buy bargains, which is the difference brought by reverse thinking. Ideas, like things in life, there is no absolute good or bad. Everything has both positive and negative sides. We should not only see the good side but also think about the bad side. Aren't the ups and downs of the market exactly the positive and negative sides of things? Trying to think backwards will always bring you different ideas.

With the increasing variety of stocks and investments, there are always stocks that are sought after and neglected by most people in the market. When most people agree with growth stocks and small-capitalized stocks, small-capitalized growth stocks will be sought after. Because the market value of small-capitalized stocks is small, and more stocks are bought, the final result is that they will be speculated at high prices and people are no longer concerned about performance and valuation. But whether these stocks can rise again, single thinking will follow the public to catch up with the rising stocks, but if we can think backwards, not to buy those overvalued small stocks, but to find undervalued cold-door stocks or varieties, Anti-mass investment needs courage and calmness, and more need to think backwards. Others do not follow the trend when they buy, others dare not buy unwilling to buy, but to study instead. In the short run, because the number of people involved in speculation will continue to raise the stock price, once the game of drumming and spreading flowers is over, the investors involved will lose a lot. Conversely, reverse investors buy undervalued stocks that nobody wants to buy before others see their value, and wait for most people to realize the value of undervalued stocks before they buy them crazily and push up the stock price. Another reverse investment is to sell. There are always a few people making money in the market, and the reverse investors are also a few. They can make others crazy, I fear, others fear and I am greedy. Reverse investment is the way to success.

In the research of the company, we also need the reverse thinking to help us analyze the company's situation. When a company is good and its operating performance is growing, most people see the good side. At this time, we need to study the company's shortcomings and the future risks in reverse, so as to avoid following the trend of speculation blindly optimistic, especially for the stocks that have been held are ten. However, it needs more research risk and insufficiency for stocks to be held. Only the positive side will make itself overvalued and unwilling to sell. We should study the good side of stocks that are difficult to operate or fall because of bad news, and how likely they will grow in the future. Only in this way can we find out the company that will turn better in the future when underestimating, and all aspects of investment can be used in reverse thinking, which will help to improve the thinking, and more thinking on one side will lead to more wins.

In the actual operation, we should use the reverse thinking method to form some thinking habits. For example, when we see the falling market, we will want to buy. When we see the rising market, we will want to sell. When we see the sharp fall of the stock, we will want to buy. When we see the sharp rise of the stock, we will think that the value of the company will become less. So we can not only achieve long-term success by looking at the market in a reverse way. Gong, but also can let themselves in the face of the rise and fall of the stock market have a good mentality, rise or fall, no matter how volatile the market has its own way to deal with, let the market serve you and no longer suffer from market ups and downs.