Investment philosophy is a kind of realm, a high degree of condensation, an explanation of the trading world, a reason for trading behavior based on the understanding of the market, a shield of our thoughts, and a reassuring agent for us to avoid the influence of market restlessness.

In interpretation, it enables us to understand the trading world, to understand what is right, what is wrong, what is effective and what is ineffective; it guides us to make choices, make decisions and take actions to rationalize the trading world in our consciousness.Investment philosophy itself is a kind of spiritual self-cultivation, which is characterized by questioning the essence and constantly reflecting. So, Richard,·Having a core philosophy is essential to the success of long-term trading, says Mr Derrihaus. Investment philosophy is the best tool for us to position ourselves in transactions.

Trading philosophy must be a high degree of understanding of the market after a long period of success or failure in actual combat, and in repeated summary, study and reflection, and will constantly summarize and improve their cognition to guide the actual combat and constantly enrich and improve it in the actual combat, and the generalization and summary of the relatively solid core trading criteria that can guide the survival and development of trading after a long period of repeated reincarnation.

How to establish a correct investment philosophy

Although many people don't notice it, in fact everyone has an investment philosophy, but most people's investment philosophy is not formed through a correct and rational understanding of the market. it's a bunch of miscellaneous and often contradictory ideas absorbed from their environment. Each of us has our own investment philosophy, but the investment philosophy of many traders can not rise to the level of "philosophy", or just stay at the level of gathering and summarizing some simple ideas. and it is very likely to be mixed with a lot of immature and contradictory things.

In the whole speculative field, the investment philosophy of master heavyweights reflects the way to win. We can develop and improve our own investment philosophy by observing and learning the investment philosophy and ideas of these top figures. And then improve our trading realm and level.

Because of this, it is often easy for them to change their investment ideas according to the popular views of the market. A well-known expert once said that the possession of investment philosophy does not lie in that it can provide any definite answers to the questions raised, but in the questions themselves, because these questions can expand our concept of everything possible in the deal. enrich our mental imagination and reduce dogmatic self-confidence.

In addition, especially through the size of the universe in philosophical meditation, the mind becomes great and thus can be combined with the universe that is the supreme good. Therefore, in order to establish a complete investment philosophy, we must understand the following questions: what are the nature and rules of investment? How does the market work? Why does the price change? What are your competitors like? How to predict the price? What is the code of conduct for trading? How to allocate funds? What are the reasons for profits and losses? How to avoid suicidal sex and so on.

How to understand investment philosophy

In foreign countries, investment institutions often understand each other's investment philosophy by investigating each other's investment strategies and how to buy and sell decisions, the advantages and disadvantages of trading models, when trading performance is good and when trading performance is poor. The details are as follows:

• Warren Buffett
  

"God of stocks" was born in the speculative and turbulent city of Omaha, Braska, on August 30, 1930. He adhered to the principle of simplicity and focus, invested in the stock market with the mentality of business operators, and in less than 50 years, gathered into a huge wealth kingdom, creating a wealth myth ranging from $100 to $72 billion. In 2009, Forbes magazine published the ranking of 2008 global millionaires in New York. Buffett ranked first and became the richest man in the world.

Among the investment gurus on Wall Street, no one is as cohesive as Buffett, because both his investment philosophy and his investment quotations are regarded as the "investment Bible" by young investors without exception.

Buffett said, "I always knew I would be rich." I have never had the slightest doubt about it. Buffett's simple and clear principles and patient focus logic give the investing public a relatively clear and correct concept of investment. Wealth cannot be replicated, but the philosophy and philosophy of acquiring wealth can be learned:

1. We are only afraid when others are greedy, and greedy when others are afraid

2. Time is the friend of the good investor and the enemy of the bad investor. When the stock price is on the high side, all you have to do is wait patiently and keep tracking until the stock price reaches the range he thinks is reasonable. The growth of compound interest provides a good basis for long-term investors.

3. Investment must be rational. If you can't understand it, don't invest.

4. Diversification is the self-protection law of the ignorant. For those who know what they are doing, diversification is meaningless; there are only four or five stocks that are really worth investing in in one's life. Once found, you should concentrate your money and buy in large quantities. You should put all your eggs in one basket and watch carefully.

• William Gann

Gann was one of the greatest market speculators at the beginning of the 20th century. he speculated in the market for 45 years and earned more than 50 million US dollars with his own mathematical and geometric theory-based trading methods, equivalent to more than 1 billion US dollars today. He was not only a successful investor, but also a wise man and a great philosopher. He made great wealth at that time with his mysterious analytical techniques and methods based on ancient mathematics, geometry and astrology.

His theory of perfect combination of time and price is still talked about and highly respected by the investment community. The essence of Gann theory is to establish a strict trading order in a seemingly disorderly market. He established Gann time rule, Gann price rule, Gann line and so on. It can be used to find out when and to what price correction will occur.

Gann theory is based on the study of market measurement. Gann established his own unique analysis method and market measurement theory through the comprehensive application of mathematics, geometry, religion and astronomy. Because his method of analysis is very accurate, sometimes to an incredible degree. What attracted the most attention was a field visit by Richard Wyckoff, editor of The Ticketr and Investment Digest magazine of the United States in October 1909. Under the supervision of magazine personnel, Gann conducted a total of 286 transactions in 25 market trading days in October, resulting in 264 profits, 22 losses, and an interest rate of 92.3%.

Gann's theory is abstract and mysterious, and we can only understand his trading philosophy from his 21 rules of sale.

Gann's 21 buying and selling rules:

1. Every time you enter the market to buy or sell, the loss should not exceed 1/10 of the capital.

2. Always set up stop-loss positions.

Never buy and sell too much.

4. Never turn your position into a profit or loss.

5. Never go against the market.

6. if there is doubt, close the position and leave the field.

7. Buy and sell only in active markets.

Never set a target price to enter the market, but only obey the market trend.

9. If the position is not closed without good reason, the profit can be guaranteed by the stop-earning position.

10. After the success of Lien Chan in the market, part of the profits can be withdrawn in case of emergency.

11. don't expect dividends to earn when you buy stocks.

12. when losses are incurred by trading, do not overcharge in the form of gamblers.

Don't enter the market because of impatience, and don't close your position because of impatience.

14. If you are willing to lose or not to win, you must give up.

15. The corrosion stop plate dropped when entering the market should not be cancelled at random.

16. To enter the market, you should wait for the opportunity and should not buy and sell too closely.

17. Be free to be long and short, not just one-sided.

18. Don't buy it because the price is too low, and don't sell short because the price is too high.

19. Never hedge.

Try to avoid adding pyramids when it is inappropriate.

21. Avoid arbitrarily changing the trading strategy of your holdings if there is no good reason.

• Bernard Baruch

Baruch is a legendary venture capitalist who conquered Wall Street and Washington after conquering Wall Street. He entered Wall Street at the age of 19, became a partner in a Wall Street brokerage firm at the age of 25, and became a millionaire at the age of 32 by investing. Then began to have the highest level of government public service in the country. Baruch was one of the few "big speculators who made money and preserved the fruits of victory" at that time.

"Supremacy: experience from the greatest Securities traders", Baruch is listed as one of the five greatest securities traders. Roy Newberg, the father of American mutual funds, said: "Baruch is the best investor to seize the moment!" "

His trading philosophy is:

1. Human nature is the most important; only to do well but not greedy.

2. Beware of anyone bringing good things such as "inside" information or "special news"

3. Do not attempt to buy at the bottom and sell at the top

4. Quickly accept and deal with losses

5. Hold only a few securities that can be followed continuously.

6. evaluate all investments on a regular basis

7. Never invest all your money

8. Stick to what you are most familiar with.

• Peter Lynch

Peter Lynch is known as the "best stock picker in the world" and the "most legendary fund manager in history" by US fund rating companies. Peter Lynch joined Fidelity Management Research as a researcher in 1969 and became a fund manager of the Magellan Fund in 1977.

In the 13 years until he resigned as fund manager in May 1990, the assets under management of the Magellan Fund grew from US $20 million to US $14 billion, with more than 1 million investors and becoming Fidelity's flagship fund. At that time, it was the fund with the largest amount of assets under management in the world, and its investment performance ranked first, with an average annual compound interest return of 29% over the past 13 years.

Investment philosophy:

1. Never trust anyone to predict the market.

2. Investment is only a kind of gambling, and there is no 100% safe investment tool.

3. The essence of value investment is that the intrinsic value of stocks with good quality and low price will always be reflected in the stock price for a long time, making use of this characteristic to make the principal increase steadily.

4. companies with investment potential and unnoticed by the market hold long-term holdings and make use of double-entry rollover to grow steadily.

• It's Sichuan Ginzo.

Mr. Yinzo Kawakawa is a famous stock master in Japan. the teenager began to work hard in the world, working hard in the stock market known as "the number one casino in the world" for 60 years and created countless miracles. When he entered the market at the age of 30 with a capital of 70 yen, he made a hundredfold profit and became a celebrity in the Japanese stock market. By investing in the stock market alone, he ranked first in the list of personal income in Japan in 1982 and second in 1983. The record is that he earned 20 billion yen a year at the age of 82. He is known as the "god of the stock market" because of his astonishing judgment and surprising accuracy in predicting the economic situation and the stock market.

According to Chuanji's experience for many years, investing in stocks is like a race between the tortoise and the tortoise. The hare is so confident that he is so blinded by victory that he loses. On the other hand, although the tortoise walks slowly, it is steady and cautious, and instead wins the final victory. therefore, the investor's state of mind must be the same as the tortoise, slowly observing and trading cautiously.

The so-called "three principles of turtles" are:

1. Choose potential stocks that are promising in the future, but have not yet been recognized by the world, and hold them for a long time.

2. Keep an eye on the changes in the economy and stock market every day, and study it yourself.

3. Don't be too optimistic, don't think that the stock market will rise forever and operate with your own funds.

It is the "five principles of Investment" of Sichuan Bank and Tibet:

1. Don't rely on recommendations to choose stocks, you should make your own research and choose them.

2. You should be able to predict economic changes in a year or two.

3. Each stock has its own appropriate price, and the stock price exceeds its due level, so don't catch up with it.

4. In the end, the stock price must be determined by its performance, and the hard-made stock must not be touched.

5. Unpredictable events can happen at any time, so it is important to remember that investing in stocks is always risky.

• Jesse Liverpool Moore

Jesse Liverpool Moore: the greatest stock investor of all time, people still use the revolutionary trading strategies of this trading genius. He made an amazing fortune in the stock market, lost it several times, and died of personal problems and severe depressive symptoms.

His investment philosophy is:

1. Never stop analyzing; attach importance to the market, not individual stocks

2. Be bullish in the long market and bearish in the short market

3. Care about doing things right, not about making money

4. In speculative operations, nothing can be absolutely booked

5. The basis for the success of stock speculation is the assumption that everyone will continue to make the same mistakes in the future.

6. Be a loner and not be influenced by others

There is only one side of the market, not the long side or the short side, but the right side

8. Whatever has losses should be sold, and those that make profits should be kept.

3. Care about doing things right, not about making money

4. In speculative operations, nothing can be absolutely booked

5. The basis for the success of stock speculation is the assumption that everyone will continue to make the same mistakes in the future.

6. Be a loner and not be influenced by others

There is only one side of the market, not the long side or the short side, but the right side

8. Whatever has losses should be sold, and those that make profits should be kept.

• John Maynard Keynes

The most influential economist of the 20th century. Between 1920 and 1940, he invested and amassed wealth in the most dangerous and volatile asset markets in history. His performance ups and downs, changes in tactics and investment ideas are all fascinating.

His investment philosophy is:

1. The knowledge base on which we estimate expected returns is extremely fragile. If we want to estimate the credibility of a railway, a copper mine, a textile mill, a patented drug, an Atlantic tanker, a building in central London, in 10 years' time, we can rely on too little knowledge, sometimes none at all, even if the time is shortened to five years later.

The incomplete knowledge of valuation and the uncertainty of the operation of the invested companies have been greatly strengthened by the erratic market psychology. "the market price obtained by acting in accordance with the rules is the product of the psychology of the masses who know nothing about the situation. It will naturally be violently affected by sudden changes in the views of the masses. The factors that change the public's point of view are not necessarily related to the expected return on investment, because the masses have never believed that the market will be stable, especially in extraordinary times, no one will believe that the current state will continue indefinitely, so, even if there is no specific reason to expect changes in the future, the market is still easily dominated by optimism for a while. I was hit by pessimism for a while. "

2. Most of the experts predict that the profitability of an investment product is not much higher than the average person, but only a little earlier than the average person. They are not concerned about how much the stock is really worth, but how much the above-mentioned stock can be worth in the market in three months or a year under the influence of the psychology of the masses.

3. The battle for intelligence is to predict the market price of the stock that can be determined by convention in a few months, rather than the return on investment in the next few years. Even this kind of struggle does not need to provide any benefits for behavioral professional investors, they can play with each other. Participants do not need to really believe that there is any reasonable basis for sticking to conventions in the long run.

In a word, it is like a game for recreation. In this game, victory belongs to those who are not too early or too late to 'stop', to those who can pass things on to their neighbors before the end of a game, or who can have seats before the music stops. These games can be played with relish and happiness, although everyone who takes part in the game knows that things are always passed around, and when the music stops, there will always be people who don't have time to get out, and there will always be people who don't get a seat.

4. the investment of professional investors is like a beauty pageant in a newspaper, in which participants choose the six most beautiful photos out of 100. The person who is closest to the six photos selected by all the participants is the winner. Thus it can be seen that what each participant chooses is not the person he thinks is the most beautiful, but the person he imagines that the other participants want to choose.

All participants look at the problem in the same way, so that selection is not based on personal judgment to select the most beautiful people, or even on the basis of real average judgment, but to use our intelligence to speculate on the most beautiful people.

• David Ricardo

One of the main representatives of British bourgeois classical political economy, is also the completion of British bourgeois classical political economy. Ricardo was an exchange stockbroker in his early days. Influenced by the study of the Nature and causes of National Wealth, Ricardo aroused his interest in economics, which mainly included currency and price. There is also some research on tax issues.

Ricardo's main economic masterpiece is political economy and the principles of Taxation, which was completed in 1817, in which his tax theory is expounded. He was elected as a member of the House of Commons in 1819 and strongly advocated parliamentary reform and free trade. Ricardo inherited and developed Smith's liberal economic theory. He believes that limiting the scope of the country's activities and reducing the tax burden is the best way to grow the economy.

Western economists who have historically made more money in the stock market than Keynes. Mainly speculate on government bonds and invest in the futures market, which is ten times the size of the cash market. When he started his career at the age of 21, he had a fortune of just £800. when he died 30 years later, he left a fortune worth between £675000 and £775000, meaning he made a profit of £28000 a year.

His investment philosophy is:

1. Be aware of any accidental difference between the relative prices of stocks (government bonds) when the market changes.

2. Mainly engaged in short-term transactions and realized a small portion of a large amount of assets.

The market is a function of the human heart, due to the limitations and specific thinking patterns of investors in knowledge, information, time and so on, in fact, the attention of investors can only focus on a very small number of factors that he values and are interested in and their related logical relations. As ordinary investors, it is difficult for us to have the investment philosophy obtained by the combination of personality, ability, knowledge and many other factors. But it is important that we can gradually develop our own investment philosophy on the basis of studying master investment philosophy.

It has been said that wealth is the product of one's ability to think. In the ever-changing trading world, if you want not to be swayed by others, you must carefully develop your own investment philosophy and stick to the correct investment philosophy. Of course, a core investment philosophy cannot be simply copied, we can only use our own time and painstaking efforts to get it.