There are many types of stocks in the stock market, but most people do not make a profit after making an investment.So how do we acquire this mindset?

What are the core elements of contrarian investment?

The core is to buy at the time of negative thinking, down is only the appearance of negative thinking, but not all down represents sufficient negative thinking, sometimes insufficient up may also be another negative thinking.The world is complex and full of changes, the profits we make are made according to the changes in the market, not in the delusion that we can guide the market and thus make ourselves profitable, the market is always right, The key is to judge based on the opposite theory of the facts after its correctness has been proven again and again, always avoiding the process of its correctness being unfolded.

How do you interpret the phrase "the market is always right" and is it right to go up or right to go down?

Whether the share price is going up or down, as long as the stock profits change, this is the right manifestation of the phenomenon. When it goes up, it is a good way of thinking, when it goes down, it is a wrong way of thinking. Every change in the market is a perspective and a thought process. Understanding the market is about understanding its thinking in the midst of change and then incorporating it into your own research. The market is a manifestation of collective intelligence that helps us refine our perspective while gaining a sense of time and change in thinking, as the market gives a great deal of diversity and logic in different information and states of pricing, expectations and thought processes, and understanding this is very beneficial to our investments, allowing us to more comprehensive and objective understanding of the company.Because of the different dimensions of perspective, inevitably accompanied by some aspects of incorrectness, you must recognise its correct phenomena before you can understand the incorrect judgements.

What are the core elements of concentrated investment?

It is deterministic, or probabilistic, but since what you think others must also think, which reduces the "probability", the two will generally be opposite, but will occasionally appear to agree in different frameworks, requiring investors to diversify their stock purchases across many stocks for stock tracking and only focus on the two when they are found to be in unison.

What are the core criteria for stock selection?

A good business model also meets the three requirements of predictability, prospectability and imaginability.

Expectable: figure out performance and valuation in 1 year

Prospective: can roughly feel the development path of the company for three years

Can be imagined: can have expectations of the future in 10 years, can be very vague, but have a general idea.The first two determine the performance and sustainability of the company, and the last one determines whether performance can be expressed in the face of rising valuations.

Before we invest in stocks, if we want to make profits, we must have investment contrarian thinking, so that we can be rewarded in the market.

（Writer：Cily）