Why do some people succeed and others fail in the same market?
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Why do some people succeed and others fail in the same market?
Financial statements are just one of the tools we use to understand the company. In addition, what is equally important or even more important is the logic of its business, including the logic of supply and demand in the external market, the product structure and strategy of the internal company, as well as the structure of costs and profits. Finance is only a result, and the source is the operation itself. If you understand its business nature and future, in fact, the periodic financial deviation is not a big problem. Moreover, the financial adjustment skills within a certain range are completely legal and often reasonable.
So you see, financial statements are not omnipotent, but at least they are a common language in investment. You can be cautious and cooperate with other tools to analyze the company, but if you simply adopt the attitude of avoiding the financial statements based on the "cheaters" in the market, are there still bad people in society? Are we going to go on the street? In fact, to be honest, the main problem for people who think so is not that they have too many traps, but that they do not have the basic knowledge of financial statements at all. Traps are just an excuse for not learning.
To put it simply, people who can succeed in investment have a common feature: learn what they can't do. If they don't have a chance to learn, they should learn to create opportunities; People who have little future in investment also have a common feature: if they can't, they should make excuses. If there is no excuse, they should also make excuses to create conditions. Why do some people succeed and others fail in the same market? The reason is not more important than simply criticizing the shortcomings of the market!
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