Cognition and Investment Advancement: A Comparative Analysis of Research and Social Media Views

• According to a 2024-2025 study on financial literacy and investment behavior, cognitive ability (including financial literacy) has a significant positive correlation with investment performance, reducing irrational behaviors such as overtrading and chasing trends [1].
• Another study notes that while cognition is an important foundation for investment advancement, it is not sufficient—advancement requires collaboration with education, practical experience, risk management, and psychological quality [2].
• Key methods to enhance cognition include behavioral finance training (identifying biases like anchoring and herding), AI advisory tools, risk-sharing practices, and community learning [4].

• Reddit users argue that cognition is a necessary and sufficient condition for investment advancement, stating cognitive gaps are the main driver of wealth redistribution in the stock market. They also highlight that bull markets depend on national top-level design and value realization.
• Xueqiu users emphasize cognition as the core for investment advancement, with one post noting that “your cognition matches your suffering” (referring to losses from leverage without sufficient cognition). They prioritize factors like national policies, geopolitics, and era trends over technical or fundamental analysis for retail investors [3].

Both research and social media agree on cognition’s critical role in investment success. However, research warns against overstating its sufficiency, while social media often frames it as a core or even standalone factor. For investors, enhancing cognition through structured learning and practical experience is essential, but they should also focus on complementary skills like risk management and emotional control to achieve sustainable advancement.