When the stock market crashes, don't panic or be greedy. What determines your state of mind?

The stock market plummeted, the market index plummeted, and the stock market also fell. Especially today, the whole green is like rape in early spring. The transaction volume of more than 700 billion a day is obviously a lot of panic. Of course, greedy low-sucking institutions also have a lot of money. At this point, as a trader, are you afraid or greedy? Panic, because the stock index fell, the stock price fell, leading to losses. Panic, because the stock price falls, I can't see the direction of progress, and I don't know how much and how long the stock price will fall. Greed is because the stock index has fallen so much, almost. Greed is because you clearly see smart money enter the market and compete for cheap chips. Greed is because you know that "the rabbit's tail can't grow"!

The mentality is influenced by cognition, that is, the cognitive level determines the trader's mentality. Anyone who has played bungee jumping knows that even if the rope is firmly tied to their feet, they will still be afraid. But if you firmly believe that the rope binds your feet, the fear of no risk will disappear. In my opinion, there is no fixed general formula to apply mentality, especially when the stock market falls. It is like a fulcrum in the middle of balance, and greed and fear are only components on both sides. As long as greed increases, fear will be alleviated; As long as greed decreases, fear will increase. The relationship between them is disappearing. Most people participate in the stock market with a speculative attitude. They don't have the necessary professional knowledge, but blindly buy and sell with some ambiguous news.

If the market is not good, it will be like blind fear. When you get lucky, you will turn your past fear into greed. Most people swing back and forth between this fear and greed, and also between profit and loss, which finally constitutes a strange landscape of the stock market. We often say that the crisis is organic. In fact, the sharp decline in the stock market is not the decisive factor affecting the mentality. As long as you are calm enough, you will find that there are still opportunities in the sharp decline. The key is whether you can stop blindly following the trend. As long as you are calm enough, no matter how the market changes, it will not affect your mentality, let alone your income.

The same is true of the current stock market. Although the stock index plummeted and the stock price plummeted, it is an eternal fact that the stock market will inevitably rise. The more you fall, the closer you get to the rise. What is there to be afraid of? The darkness before dawn looks very dark. Actually, it's not far from dawn. When you know that the panic board appears, you have money to absorb cheap chips, and others don't panic. Why are you panicking? When traders understand the operation of the stock index or stock price, there is no fear.