Financial and capital markets are built by "DEBT"

Why is that so, when we can explain and see it, we will see the cause of all the collapse of secondary markets in finance.

For example, the stock market was initially created by honoring companies that operate well, creating opportunities for investors to contribute capital to help them develop healthily.

But unfortunately the rule "Where there is Money, there is crime" still applies to no one or any market.

When the market is easy to make money, human psychology is always looking for ways to circumvent the law and find loopholes to get rich quickly.

People rely on the company's reputation to mobilize capital and use that money for personal purposes.

People borrow money from banks to help them get rich quickly in investing.

So please pay attention, any market cannot escape the following 4 stages

1. Steady development

2. Started by bookmakers to intervene in lending, using leverage

3. Loss of credit, market collapse, black swan.

4. The dealer intervenes, takes over, and sets up a new game

So once step 2 appears, which is borrowing and leverage, then step 3 will definitely come, the Black Swan will have to come.

Because the nature of the financial market uses leverage to borrow, meaning you are borrowing future profits to spend first, once anyone breaks, you break too, the story of the entire financial market collapse in 2008 is like that. .

CEO:

- Mr. A is doing well, buy Mr. B's shares

- Mr. B's business is good and he buys shares of Mr. C and D

- One of Mr. C and D did not do well, borrowed money, went into debt, and went bankrupt.

- Mr. B's investment assets were affected, Mr. B's company and stocks went down

- Mr. A did business honestly, even though he did not use leverage, but his assets flew away because Mr. B's stocks plummeted.

- Mr. A's relatives, friends, and family were affected even though they did not invest

It's a systematic chain collapse from leverage, that's why Warren Buffett has a saying that I really like and often reflect on.

"If you don't hold a stock for 10 years, you won't be able to hold it for 10 minutes."

He wants the crowd to understand that you need to invest in long-term value, not use the mindset of getting rich quickly and borrow. If you don't have the original thought, holding something for 10 years, you can't keep it. in 10 minutes.

Investing requires the word "stability", not a high profit rate, please remember that.

If you have a stable profit or revenue, you have a store of Gold, please keep it carefully, don't try to use leverage to make it increase faster, believe me, you are destroying the store of Gold. there.

"The strength of the Wolf is in the herd - The strength of the herd is in each Wolf"

So choose a group to play with so that you can get better every day and not be dragged down every hour