How does the bull market escape from the top?

Baruch: A story tells you how to escape easily in a bull market.

Buffett once said: "We have been very successful in investment because we are focused on finding the 65,438+0-foot railing that we can easily cross, while avoiding the 7-foot railing that we cannot cross."

There is a well-known joke on Wall Street: There is nothing new on Wall Street.

Through some history books, we can often read such a sentence: "History is always strikingly similar".

For thousands of years, although the investment market has developed and perfected in the torrent, one fact has never changed: the public has never learned from history.

In the book Poor Charlie, Buffett's old partner Charles Munger mentioned a point: "

There is a concept in psychology called "social identity", and we will be unconsciously influenced by other people's identity. So, if everyone is shopping, we will feel good and don't want to be the backward guy. "

Listening to the public psychology makes us feel at ease, but in the investment market, such as the bull market, if we always follow the mainstream pace, it is easy to get into trouble. The arrival of the bull market excites investors, and this joyful atmosphere is the chief culprit that leads to the high position of investors.

Buffett's suggestion is: "In order to ensure the ultimate success and profitability, investors must learn to think independently. I am often surprised that some people with extremely high IQ unconsciously follow the crowd in the market. I never got a good idea by talking to others. "

The market brought by the bull market is pleasant, which makes investors full of energy and begins to expect to earn a lot in the bull market.

Today, although many people have left, there are still many old leeks in the currency circle. About 90% of these old leeks are losing money, and everyone is looking forward to returning to their money in this bull market, and then making a big profit by using their rich experience.

But history tells us that even some ancient leeks that have experienced two bull markets have not made any money until today. There are too many opportunities for the coin circle to counterattack. If properly controlled, using the bull market, tens of thousands of dollars in hand can easily become tens of millions.

Unfortunately, people always need more. Many old leeks often make money in familiar fields and then lose all in unfamiliar fields. In the last seven or eight years, most people have been investing, and they have not gained much.

To grasp the bull market, you must learn two words.

A bull market is like a fish. There are always people who want to eat it from beginning to end, and finally they keep talking. As a result, the fish disappeared, and people were stuck in a high position because they had no time to make a profit.

A rational investor deeply understands the essence of bull market. The way for the investment tycoon Livermore to beat the bull market is simple: ignore the pre 10% and post 10% of the bull market. This ratio need not be too rigid, and investors can operate according to the actual market situation.

The arrival of the bull market is traceable. When the bull market is coming to an end, rational investors can obviously feel some changes.

The masses are always wrong ———————

Baruch was a very famous investment master in the last century, and was called "the genius of Wall Street".

Because his perception of the bull market is very accurate, he can always leave the high point in time to make a profit when the bull market is about to reverse.

There is a well-known story in baruch's investment career:

1929 One day, baruch passed by Wall Street, and an enthusiastic shoeshine boy stopped him and recommended some active stocks at that time. "Sir, buy this. I have an inside story to tell you that you can make a lot of money. "

After listening to the shoeshine boy's words, baruch suddenly broke out in a cold sweat, and even the shoeshine boy was paying attention to the stock, which shows that the market is already very hot. He gave the shoeshine boy two dollars, and then ran back to the office, throwing out all the rapidly rising stocks on the book.

History has proved that baruch's practice is correct. Although the rising market has also created a lot of profits, the market soon ushered in a plunge and began to fall across the board.

There is a common mistake in the investment market: before the market crashes, most investors will chase up and down recklessly and buy at a high price.

If you are interested, you can also refer to Jiang's bull market escape index. In the bull market of 17, Jiang successfully escaped from the top with his escape index before the bull market crashed.

This is similar to the main indicator that baruch escaped from the roof.

Roy, the father of American mutual funds? Newberg spoke highly of baruch. He once said, "baruch is an investor who can fully seize the opportunity. He never waits for the highest or lowest point. He buys in a weak market and sells in a strong market! Advocate buying early and selling early. "

Baruch's escape index from the bull market is actually very simple. His strategy is: when people are cheering for the market, you should sell decisively, whether it will continue to rise or not, and vice versa.

Wall Street's investment elites are often surprised by baruch's accurate prediction. When other investors are still immersed in the carnival of the bull market, baruch can always seize fleeting opportunities and easily profit from the bull market.

Referring to the past two rounds, when the bull market in the currency circle comes, investors tend to be more crazy. Investors are all people. By studying market sentiment through human nature, we can often find signs of a bull market crash.

Although the footsteps of the bull market are getting closer and closer, it should be remembered that the bull market is not a god of wealth. The market may give you money at the beginning, but in the end it is robbing money.

Investors need to be responsible for themselves.