Ok you guys win. I can't beat you guys!!

In a local forum, someone said,

"I buy, the price go down. I sell, the price go up."
"I give up. Lost $20k in one month. "
"No more."

We need many of these people in the market to fund our profits. Retail investors and traders who are so penny wise and pound foolish will never appreciate the importance of getting education. They approach investment and trading in the wrong ways.

Everyone knows that in order to profit, he has to buy low and sell high. But many times, he does not seem to be able to figure out that in order to profit, he can actually sell high and buy low (well, I am not talking about naked short position, and don't get me wrong on this). And interestingly, he may be buying high and selling low. Why does this happen? This has something to do with fear and greed.

Fear - afraid to take losses and as a result, losses keep piling up until that person cannot tolerate anymore.

Greed - take profit as fast as possible because it may be gone. So, the person will take profit and later will discover that he could have made more and started screaming and shouting.

Having said that, by getting proper education, this person could have saved $20k. Of course, when every smarter Alec is telling you that "cash is king and thus you should wait", he is also not getting proper education. Please don't listen to these people because they never tell you that you can profit from a bear market first before it reverts. So, instead of waiting for the bull market to come back, why waste time to stay sideline? We have traders who continue to make money in the bear market, me included. It's the result of us getting proper education, and trading with a plan. Don't under-estimate the power of education and don't be afraid of getting involved in the bear market.

Well, who knows when we are seeing this situation in future. But if we are educated, I am sure we know how to deal with this next time.