Heart Land

According to Warren Buffett, there are two golden rules in the stock market.

The first rule of investing  - don’t lose your money.

The second rule is - don’t forget the first rule.

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For those who think long term investment.

When you tell them to cut losses when the prices plunge, they will tell you they are investing long term.

As the share prices drop like there’s no bottom, they will say don’t worry they will rebound.

This is analogous to a gambler keep losing money and still saying “don’t worry, my luck will come. I will turn this around.”

When you tell them they are wrong, they will be angry!

P/S: long term investment does not mean you can’t pull out during bad times. Be flexible!