The most important thing in Investment

Fundamental Analysis? No. Technical Analysis? No. That what is it? Let's see what those real successful guys tell us.

李：有人总结您能够十八年都不会从股市失败的一个重要原因，是您有一个像隐士一样平静的心态，确实如此吗？
　　杨：对，我经常对我的学生讲，炒股是六分心态、三分技巧、一分运气。
　　李：您的这个心态也是股市把您摔打出来的吗？
　　杨：摔打出来的。还有一个是我比较看得穿。
　　李：看得穿什么？
　　杨：钱是身外之物，你千万不要为富而来，为富而来的结果往往是贫。我和失败的人的区别就在于我期望值不高，是以一个下岗职工的心态在买股票。
　　李：为了养家糊口而买股票和为了一夜暴富买股票，心态的不同会带来什么样的结果？
　　杨：想暴富的一定是急功近利，为了养家糊口，他就把股票放着。你心态好了以后，可以用一句老话，叫宁静致远，比如这个行情涨两年了，谁越傻越放得住的，越赚大钱，这个放得住要什么？要心态 。
### Translation
Lee : Some people you can sum up 18 years from the stock market are not a failure of the important reasons, you have a hermit in the same calm mentality, and this is true?
Yang : Yes, I often say to my students, speculation is six hours mentality, one-third of skills, a breakdown of luck.
Li : Your mind is the stock market out your competent?
Yang : The temper. There is a comparison I see wear.
Lee : What to see what to wear?
Yang : worldly possessions money, you should never come to the rich, the rich from the poor results often. I failed and the difference is that my expectations are not high, based on an attitude of laid-off workers in buying stocks.
Lee : To feed their families and to buy the shares and who became rich buying stocks, the different mentality about what might be the outcome?
Yang : Through the will to be rich, in order to feed their families, he has kept the stock. You have a good mentality, one can use the old adage, called quiet Zhi Yuan, such as the Rising After two years, Who more silly attitude of the more up, the more money and to survive this up? To mentality.

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That is your mentality toward investment. We always talk about risk control, always talk about P/E, support, resistance. However those tricks are minor compared to attitude. In another word, you have to find your own way of investment. Many people at the beginning of trading always mix concepts of investment and speculation. However those successful people always find a way to suit themselves. For example, after you made a trade, do you frequently check the price of stocks? do you feel anxiety of your trading? If yes, you could be defined you are not suitable for a long term investors. All trigger yourself is the short term profit or lost. It would be better that you train yourself to be a short term or swing traders. This may not be true, just use as an example. No matter what strategy fit you most, find the one you need.

The way to find the right way that you feel comfortable may not be so easy. You have to try and error. One simple way you can do can be described like this,
1) forget about what others have told you, basically means once you find a stock, don't look at news about it, don't listen to others' opinion about it.
2) Try to understand the business of the stock in a simple way. How simple could it be? You don't need to look at its Financial statement, only judge by your own intuition whether this business will have future.
3) Find out what strategy fit you most, trader or investor. The best way that make you feel comfortable.
4) Design your plan, entry and exit.
5) Go for it.

6) If you lose, write down the reason, e.g. stop too tight? too loose? exit not reasonable?

7) If you success, count 1 onto the entry and exit strategy because it is a winning one.

8) Try several times until you find the right one. I would not rec you to use paper trade. Simple reason, it won't improve your mentality.

I have tried several tough ways until I finally find out that I am more suitable to be an investor involving into mid-term to long term trading through complete study of a company's business model.

最后以一句话佛经上的话总结，“找到了路，就不怕路有多远”.
( Finally, a word on the Buddhist concluded, "find the way and not afraid of how far the road." )
You will find your own way.