Since I entered the stock market, I often feel that it is very similar to life.
The excitement and satisfaction of a bull market, the helplessness and panic of a bear market, repeat themselves endlessly, as if there is no end.
But those who can switch between ups and downs with ease are few and far between.
The recent market is like an unexpected exam. The question is clearly stated: 'Technology stocks are correcting at high levels, and funds are shifting to defensive sectors.'
Everyone understands the logic, and the slogan of 'wave trading and timely switching' has been shouted countless times. But after the market closed, I couldn't help but ask myself: How many people can truly withdraw gracefully and accurately reallocate their investments?"
In this round of adjustment, I believe everyone has accumulated their own gains and losses, which are worth a serious review.
Isn't life the same? One cannot just charge forward blindly; sometimes, one needs to stop and check if the path ahead still leads to the original intention.
1、Why do we always fail to withdraw in time?
The force of inertia:
Buying high and selling low is an inherent human tendency. We are too easily drawn by the "this time it's different" stories and fall into the trap of one-sided thinking.
Emotional entanglement:
Having "emotional attachment" to the stocks we hold, and being reluctant to sell after getting trapped, our decisions are often influenced by "sunk costs". •
Easy to know but hard to do:
There is a gap between "knowing" and "doing", and inside this gap lies fear and greed.
2、More important than "switching" is "reviewing and reflecting".
The ups and downs of the stock market are normal. Truly wise people have long learned to reflect during fluctuations.
So, you might ask yourself: "What went wrong with my decision-making process during this adjustment?"
If every correction only leads to losses without bringing growth, then the fluctuations are merely pain rather than a lesson.
The same is true for life.
We are pushed along by the torrent of life, busy with education, employment, promotion, and salary increases, but rarely stop to ask ourselves:
Is the path I'm taking correct? Is my "life asset allocation" healthy?
Have I placed all my "positions" in the "work" sector, while neglecting health, family, and inner peace?
3、What the market review brings about is deeper reflection.
Every failure is an opportunity for learning.
We can try to ask ourselves:
• What was the core logic behind my purchase/sale at that time? Did I have an exit mechanism in place?
• If the logic was correct, was my action driven by rationality or emotion?
• Looking at life: Am I in a "adjustment period"? Is my "life portfolio" balanced? Is there any part that has been seriously overdrawn?
• How should we improve next - not only in investment strategies, but also in life strategies.
A friend once told me: "We clearly sensed the decline, but we always couldn't escape in time."
This reminded me of the A-share market after the National Day holiday last year: Before the holiday, it had been continuously rising, and on the first day after the holiday, there was a "last-minute celebration". But at that time, we decisively reduced our position by half, and the next day the market began to plummet.
That moment of rationality, in the midst of the celebration, was a wake-up call, and it is something to be grateful for.
4、The pullback is a necessary pause.
Every pullback in the stock market is like a stern teacher, using a small test to remind us of those forgotten fundamental principles.
The market never ends; ups and downs are the norm.
The same is true for life - as long as we are in this world, ups and downs are an inevitable part of the journey.
Don't be complacent at the peak, and don't despair and give up at the trough. Such a mindset is extremely precious.
The pullback in the market is for better progress;
The review of life is for arriving more clearly and more consciously.
Don't be frustrated by not achieving a perfect transition. As long as we learn to adjust our posture in the turbulence and correct our course in the wind and rain, Then every pause will become the most solid foundation for moving steadily and far in the future.
