2023.11.01
1.4 What does investment mean to you?
For me, investing is my way of understanding the world.
A friend of mine who likes to watch football told me that it is boring to just watch football. Only when you place a bet, the ups and downs of your mood when watching the game will be exciting and maximize the effect of the show. For me, investment is somewhat similar to this. The modern financial system sets prices for almost all physical and abstract resources in the world based on the theory of supply and demand, and can be traded in the secondary market. In the financial market, you can bet based on your own views on a thing, and the market will eventually use numbers to prove whether you are right or wrong. I am actually a bit serious about right and wrong, so this is a perfect match.
For example, you are arguing with a nitpicker online. You say that new energy vehicles will eventually completely replace fuel vehicles. He says you are stupid and that those who buy electric vehicles are stupid. This nitpicker curses people online every day and is quite good at speaking. You may not be able to win an argument with him online. At this time, you bet on your own ideas and buy electric vehicle stocks. After the electric vehicle stocks go up, you verify your ideas and make money, while he can only be a nitpicker online. As the saying goes, people go to high places and water flows to low places. Finance is a game of brain and thinking training. You can make money by verifying the correct ideas. This fascinates me.
There is another example that can make people realize the magic of the financial market. Old fans all know that I like to play World of Warcraft. The ticker of World of Warcraft's parent company Activision Blizzard in the US stock market is ATVI. At the end of 22, Microsoft decided to acquire Activision Blizzard to enrich its layout in the game industry. Before the news of this acquisition was released, Blizzard's stock was around 64u, and Microsoft's acquisition price was 95u. This also means that before the acquisition is completed, if you buy stocks with 64u, Microsoft will buy the stocks you bought with 95u when the acquisition is completed, and you will make a net profit of 31u. If the acquisition is unsuccessful, ATVI should return to the original price of around 64u. But the truth is far from that simple. Although Microsoft's acquisition of Blizzard can make Microsoft more competitive in the game industry, Sony, the original leading competitor, will not do it. So Sony filed antitrust lawsuits in major markets around the world, hoping that the antitrust courts of various countries can rule that the nature of this acquisition is a monopoly, prevent the acquisition, and let Sony continue to lead.
After Microsoft announced the acquisition, ATVI's stock price instantly jumped from 62 to less than 80u, which is about 50% of the middle of 62-95u. This also means that US stock investors voted with real money, and they believed that the probability of a successful acquisition was about 50%. Later, this antitrust case was judged by courts in China, South America, Japan, the European Union, the United Kingdom, and the United States. Every time there was new news and progress, the price would change accordingly. At this time, ATVI's market price magically became a voting tool for investors in the global financial market on the success rate of the acquisition, and every vote was cast with real money. The media and force majeure can influence the opinions expressed in your mouth, but when you vote with real money, you will only be honest.
Investing is also how I work.
Most people follow the path set by society and never question it, because society and class mechanisms need you to function stably as a screw, so that society is more stable and the vested interest groups can suck blood without doing anything. But you and I are eager to find shortcuts. At this time, the optimal solution for society as a whole and the optimal solution for personal destiny are contradictory.
Investing is an advanced way of working. Compared with traditional working methods, in investment work, you pay very little time for labor compensation, and the ceiling of return is higher. This is a purely fair arena, focusing on brainpower, experience, judgment, and decision-making. The losers pay for their mistakes and the winners share the spoils. The modern financial system's meticulous segmentation and pricing of risks has formed different market segments, and each individual or institution can find the right target according to their own situation.
The lower limit of investment is very low, and anyone with a cell phone, internet access and some money can do it. The upper limit is also very high, and if the market gives it some face, the ceiling will be much higher than working or even starting a business. Investors who have experienced more rounds of bull and bear markets will almost certainly be more resistant to losses than those who have less experience. If you can survive a few rounds without being beaten back, you may encounter an opportunity that happens to be thrown in front of you, and you can jump up by grabbing it.
Investing is the art of managing risk and pricing risk. If you decide to make a living by investing, I believe that profit and loss ratio calculation and risk assessment have become part of your life. You can maintain some habits without being reminded, such as withdrawing more and diversifying assets. The Crypto market is a bit outrageous. As mentioned in the previous chapter, due to various reasons such as lack of supervision, there are often devastating blows in the market. For example, exchanges run away, wallets are stolen, u is de-riveted, and Bitcoin goes up and down 50% in one day, causing you to blow up your position. Never leave a way out, and never put more money in the market than you can afford to lose. This point will also be elaborated in detail later.
It is very important to get the support of your family. Trading is like walking on a tightrope, and trading with leverage is like walking on a tightrope at high altitude. Mentality is very important. You can't do many things well when you have a good mentality. You can't even walk well on some tightrope on flat ground. When your family is in a bad mood, you don't even have a place to hide. If you insist on gambling at this time, the orders you open will definitely be junk. Even if you open a good order, it will be wasted by the junk mentality. People who have experienced this will definitely understand. Of course, it also needs to be decided according to personal circumstances. Sometimes distant water cannot quench immediate thirst.
When the experience you get from being beaten in the market is enough to make you have a high profit-loss ratio in the long term, big profits and small losses, you are ready for full-time investment. When you cannot achieve a high profit-loss ratio in the long term, and can only make small profits and big losses in the long term, or make a small profit in the short term of one or two years and feel complacent, and have not experienced a complete round of bull and bear markets, then you are not ready for full-time investment. Why do I have to repeat such a simple sentence twice over and over again? It is because there are too many people who don’t understand. This sentence is the third time. Important things should be said three times. If you are still losing money, don’t mess around. At least you should have a job to maintain basic cash flow. Don’t burn your boats and leave no way out. Burning your boats is gambling, not investing. The most inexperienced people in the market are the inexperienced among the inexperienced who don’t know it. Life is long and there are plenty of opportunities. The global financial system will not fall apart if you don’t gamble in the next one or two years. Wait for the right opportunity, don’t be impatient, let alone be impatient to burn your boats. Mature investors will understand the importance of cash flow. Even if it is less, it has a great impact on the mentality, and the mentality directly affects the transaction process and results.
Investing is difficult.
Investing itself is not difficult. You just need to look at the K-line, listen to stories, think, analyze, and open orders. But it is easy to lose money in investment, but it is difficult to make money, and it is even more difficult to make big money. There are very few people who make big money and lose small money in the long run. Always remember why you come to the market. We come to make money. Our goal is to make more money and less losses in the long run, and stay away from risks that will take you away in a wave.
The value of your work is several thousand to twenty thousand yuan per month. When you choose to make a living by investing, instead of simple labor, you can make money by guessing the direction of the target value fluctuation. When we trade, we exchange one resource for another resource. What is the labor you don’t pay for? As a job, why can investment allow you to get something for nothing? Are people who work hard all idiots? Getting something for nothing is harder than you think. Investing is not lying down and counting money. People with high cognition in the market make profits by dividing the capital of idiots. So you need to focus your energy on the core and key things, keep learning and improving, play to your strengths, and make the right decisions. Make yourself the one who divides the money with the kitchen knife, not the meat on the chopping board.
They come with a gambling mentality, don't learn the basics, don't track and verify information sources, think they can make money easily by buying in, then add leverage, hold on to the order without stop loss, daydream, and even think about what car to buy if they can make a hundred times the money. These people have nothing to do with investment, and in the end they will definitely lose everything and become gigolos.
Family members, please give me some likes and comments after reading this.