Sharp decline in the stock market is actually a good thing

 Although the human brain has evolved to perfection today, innate psychology still hasn't improved. It still stays in the primitive stage of human beings and is still easy to be controlled by greed and fear, so it seems so irrational. In fact, any sharp fall, even the stock disaster with the largest decline, the stock price finally recovered and rose back, and rose higher. Of course, the key is whether you can afford to wait.

Peter Lynch said that whenever the stock market plummeted, he would recall the fact that 40 stock markets plummeted in the past history to calm his fear heart. I told myself that the sharp decline in the stock market is actually a good thing. It gives us another good opportunity to buy the stocks of those excellent companies at a very low price.

However, there are too many people in the market who always sell more shares when the share price is lower and vice versa. In fact, we can't stand temporary losses and get rich returns. Moreover, people who sell in fear are rarely able to buyback. The next time they wake up and buyback, the share price will be much higher. My experience is that the lower the share price, the more I buy, and vice versa. Of course, this must be full of confidence and the value judgment of the stock is generally correct or close to correct.