Two months ago, I made a trade my first conscious speculative trade , and one month ago, I made another rationalization . It now seems this was a completely failed speculation. I have learned some lessons:
Speculation is a negative-sum game
Due to the existence of transaction costs.
No matter how sound your analysis is, speculation is bound to fail
In this stock market, there are countless people who are smarter and have better judgment than you. You are playing against hundreds of millions of shareholders. This is not the issue of “among three, there must be a master”; this is billions of people on the stage—many are dumber than you, but tens of thousands are stronger than you. If you speculate, you are merely someone else’s profit.
You should play a positive-sum game
Buying company equity—that is true productivity and value. Be a true capitalist, letting money generate money, instead of trying to win other people’s money.