Chusho Honzen
In financial markets, we always have some myths. For example, what is the right way to invest and win?
It all seems to make sense.
Eliminate weaknesses and reinforce them, continuously examine mistakes in positions, and resolutely eliminate them, and concentrate limited bullets on the positions with the best performance and greatest advantage to avoid mediocre returns caused by excessive dispersion, causing a large number of junk coins and junk stocks to lag behind the overall yield. Buffett also said that excessive diversification of investments should be avoided. He also often relies on heavy positions on a few high-quality stocks to outperform the market's growth rate.
Removing strengths and making up for weaknesses means regularly reducing positions with the fastest growing positions and increasing positions with the slowest growth, so as to rebalance positions, so as to offset the risk of overestimation and seize opportunities for undervaluation through the cycle misalignment of different types. The Bridgewater Foundation's Copley said the same thing.
The real mentality of retail investors is deeply influenced by a psychological effect called the endowment effect (endowment effect). This theory was first proposed in 1980 by Richard Thaler (Richard Thaler), winner of the 2017 Nobel Prize in Economics.
The endowment effect reveals a common irrational characteristic of human decision-making: once an individual owns something, his evaluation of its value is significantly higher than before he did not own it. This challenges the assumption of a “rational person” in traditional economics.
However, the endowment effect does not seem to play the same role in profitable and losing positions:
When it comes to floating and profitable positions, the endowment effect is defeated by rapidly rising prices. Retail investors are often afraid that the market price will quickly surpass their own inner valuation, so they often rush to sell when making a small profit and fall back on the bag, thus missing out on the sharp rise in the market after the main wave.
However, for positions that have fallen into losses, the endowment effect has played a huge role. Retail investors are usually unwilling to cut meat and sell it at a lower price than their own psychological valuation, so they often fantasize that it will soon rise back, hesitate, and even fall into a deep trap, falling deeper and deeper.
However, the education chain has discovered that this so-called irrational characteristic of adults, which “can't be controlled and must be tough”, does not seem to be innate or innate; it is likely acquired and educated.
Perhaps because the vast majority of people came to this world, grew up in this society, and received mostly mediocre education, such as:
“Don't imagine getting rich; unexpected wealth is often a trap.” The act that led to this idea being stamped was a small increase. After making a small amount of money, they quickly settled into their own pockets and were afraid that they would make more money themselves. Taking 10 times to directly achieve a change in wealth level, I really didn't even dare to think about it, let alone have the courage to do it.
“Persevere in difficult situations and never give up.” This is mostly the kind of encouragement I heard when I was a student, but it was also a decade of repeated memorization. We only learned to persevere with our lives, but not to give up wisely. As a result, I was stuck in my life at the end of my life, and my whole life was mediocre. As a result, they were locked in a losing position and could not be unlocked for the rest of their lives.
If you take a close look at children, you'll see that children are not naturally like that.
Children are born to chase their strengths and abandon their weaknesses.
No one is perfect. According to the bucket theory, everyone is like a bucket surrounded by multiple wooden boards, and how much water it can hold depends on the shortest wooden board. So, the natural deduction is that you have to work hard to make up for your shortcomings. The more uniform, the better.
Big mistake! Very wrong! This is a theory on paper invented by an ungrounded educator. However, there are actually teachers and parents who repeatedly force children to spend a lot of time making up for shortcomings.
Is it true that so many teachers and parents are wrong? No, they're not wrong.
Contradictory. What's the problem?
The problem is that the purpose of schooling is to test. The exam consists of multiple subjects, and there is a limit on the number of points for each subject! In other words, no matter how much you concentrate on your strengths, you can only get a perfect score in the subject you are superior in. If you don't do well in other weak subjects, it will seriously lower your overall score.
Exam education conforms to the wooden barrel theory.
But this theory is just a piece of paper. It is absolutely out of touch with practice and society; it is the complete opposite.
This is also the biggest obstacle that graduates encounter when they first enter society. That is, they need to adjust their mindset as soon as possible, abandon the mentality of making up for shortcomings developed in many years of school life, and switch to the mindset of concentrating energy and giving full play to their strengths in social life.
Society The university's exams are open, time-limited, and the “score” is not capped. We can compare the money you earn in society to the scores you get in school.
For such an open test where the score is not capped, you can use your advantage to 100 times, 1,000 times, or even 10,000 times that of a normal person, so you can get a much higher “score” (monetary return) than a normal person at this point.
As for your shortcomings, you can make up for them through a large social division of labor and ask others to make up for them. There are countless methods such as procurement, outsourcing, partnerships, etc. You need to make the most of people's social nature, hand over all the shortcomings you are not good at to others, and create the most favorable conditions for maximizing your strengths.
It's like the college entrance examination allows you to get a score of 750 in the math you are best at, then you don't need to worry about getting zero in all the other subjects; you can still get a full score in Tsinghua.
This is the essential difference between the assessment method of a social university and the assessment method of a school.
This is also the root reason why the top winners don't necessarily become the richest people, and the rich don't necessarily have to be school bullies.
Tsinghua Peking University graduates are not necessarily better at trading stocks than people with elementary school degrees and middle school degrees.
Why did the teaching chain discover that children have different natures than adults?
Take a close look at your kids.
If you criticize him for not doing something well, and try to force him to understand his shortcomings through this kind of so-called frustrating education, denial of education, and suppression of education, and then work hard to make up for them, often not only will not be effective, but it is also easy to go the opposite way; it will only cause the child to further lose interest in this matter.
Whether it's math arithmetic, language writing, or memorizing words in English, this is almost always the case.
If you want him to learn this thing well, you must first overcome his heart, and do the opposite, discover beauty from the ugly, find advantages from his shortcomings, praise and encourage him for small and specific points, get positive feedback, feel recognition in his heart, and stimulate a little sense of accomplishment. This sense of accomplishment will further amplify his interest in this matter, and interest is the best teacher, and it is also the internal motivation for him to spontaneously continue to do and do well.
Whether it's mathematics, physics, chemistry, or English, this is almost always the case.
Obviously, why do children react this way? Negative feedback, loss of interest, abandonment. Positive feedback stimulates interest and perseverance.
Precisely because of the nature of children, they are born to know, pursue their strengths and strengths, and abandon their own shortcomings and shortcomings.
Unfortunately, this nature contradicts the model of survival at the school level, but it is very much in line with the survival model at the social stage.
What is even more unfortunate is that a person has to spend ten or even decades of school life to erase their nature and change their mindset to what they need to take the exam before they can graduate. After graduation, I also had to get rid of the mindset that was successfully changed during the student stage and regain the correct pattern that I already had in my nature.
Therefore, the teaching chain said in the title that the original intention is good. Good is good, good.
Let's get back to our original intentions; everyone can reap success and fulfillment in life.
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