Master Your Emotions - Duan Yongping

💬
The greatest enemy of the investor is himself. Fear, greed, regret, and pride cause more losses than any economic event. Master your emotions to master the market.
— Duan Yongping Interview，2021

🏠 Everyday Analogy

Emotions in markets are like steering on a wet road: the harder you jerk the wheel, the more likely you lose control. Rules keep decisions stable.

📖 Core Interpretation

Duan Yongping highlights that many investment mistakes are psychological, not analytical. Managing behavior under stress is as important as finding ideas.

💎 Key Insight：Emotional control is the foundation of investment success.

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❓ Why It Matters

In volatile markets, fear and greed push investors to buy high and sell low. A behavioral framework reduces avoidable, self-inflicted errors.

🎯 How to Practice

Pre-write decision rules, slow down trades during stress, and separate market emotion from business facts before adjusting positions.

⚠️ Common Pitfalls

✕Following crowd emotion at extremes

✕Mistaking confidence for certainty

✕Forcing trades to quickly recover losses

📚 Case Studies

Backing Tencent Early (2007)

Seeing Tencent’s network effects, user stickiness, and high switching costs in QQ and early WeChat, Duan considered its social and gaming ecosystem a powerful moat and accumulated shares.

✨ Outcome：Tencent became one of China’s most valuable tech companies, delivering multibagger returns over many years.

Avoiding Overpriced Chinese Equities (2008)

During the pre-crisis boom, many Chinese stocks traded at extreme valuations. Duan emphasized only buying when prices were well below conservative intrinsic value estimates.

✨ Outcome：Avoided severe drawdowns in 2008 crash and preserved capital for later opportunities.

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