Yesterday, the anti-epidemic policy was recently relaxed, but I found that everyone did not become relaxed and happy because of this, but seemed to be facing an enemy. The main reason is that the virus is too contagious now, especially in Hebei, which was the first to open it up.
Trading and life are actually the same, especially when we are facing difficulties, human nature will have a great impact on decision-making. In the face of the epidemic, we will grab medicine and food! In the face of transactions, we will chase the rise and kill the fall! If you want to overcome human nature, you must respect laws and science, which is back to the scope of cognition.
The Three Laws of Financial Markets
1、Herd Behaviour
The”follow the herd” behaviour in the market is to follow the others and end up as a leek
2、The Law of the Crocodile
A Crocodile bites your foot and if you try to free your foot with your hand,the crocodile will bite
both your foot and your hand. in the financial markets , if you are going in the wrong direction, you should stop immediately and not add on to your mistake
3、The law of two and Eight
the wealthy 20% of the world is population accounts for 80% of the world is wealth.
what makes you think you can make a profit when there are only 20% of people who can make money consistently in the capital market?