Many investors constantly

●Investment starts with the distinction between what you know and what you don't know (by. JW Son)

Many investors constantly study and analyze to succeed in the market. However, the key is not simply to know a lot, but to distinguish what you know and what you don't know. Mark Minervini's investment principles allow him to thoroughly analyze the fundamental values of a company and the flow of the industry, while acknowledging that it is impossible to accurately predict the timing of trading. This is one of the most important lessons in investment.

[Reason to distinguish between what you know and what you don't know]

The biggest reason for investment failure is to understand what you don't know. People believe that as they accumulate knowledge through study, they can increasingly control the market. However, the market is inherently uncertain and often exhibits extreme volatility that does not follow a normal distribution.

We can analyze a company's financial statements, evaluate the growth of the industry, and make investment decisions through technical and basic analysis. However, it is impossible to accurately predict the short-term movement of the market. In other words, we know the value of a company, but we don't know when the market will reflect it.

[Poker and investment: The difference between definite and uncertain]

There are many aspects similar to poker in investing. You can tell your opponent's loss in poker, but you don't know the opponent's loss. Therefore, you have no choice but to infer your loss by looking at the opponent's behavior. The same is true of investment. We do not know exactly how the psychology of market participants and the macroeconomic environment will change while analyzing corporate financial statements and industrial competition.

We are prone to making the wrong investment decisions if we do not accept this difference. We take unreasonable risks and end up losing money the moment we believe the impossible is possible. However, we have the patience to wait until a probabilistic advantage comes the moment we admit we do not know what we do not know.

[Response is important, not prediction]

It is impossible to predict the direction of the market. However, it is possible to flexibly accept and respond to market changes. Investors should focus on the areas they can control rather than trying to get the correct answer in all situations.

"Know yourself," Socrates said. This is not just philosophical advice. The same is true of investment. The most important starting point for investment is to recognize exactly what you know and what you don't know.

<What can we do?>

• You can analyze and understand the intrinsic value of a company.

• You can study the flow of industry and the structure of competition.

• Uncertainty can be prepared through asset allocation and risk management.

<What We Can't Do>

• accurately predicting the short-term direction of the market

• Controlling all variables in the macroeconomy

• Being sure of when a particular stock will go up and down

After all, the important thing in investing is an attitude of knowing for sure what you know and acknowledging what you don't know. Only then can you respond flexibly and survive in the long run even in unexpected market conditions.

Investment is a response, not a prediction. And the starting point of that response is to distinguish between what you know and what you don't know.