Similarly, for stocks, futures, real estate, and all investment industries, they can be roughly divided into three levels:
First level:
Basically belongs to the simple listeners. Hearing that something has risen, or that someone has made money from something, they will rush in.
During this period, people's goal is very simple: they just want to make a quick profit.
Just like a farmer who occasionally finds a rabbit and is overjoyed, or hears that someone found a rabbit and feels extremely envious.
This is the stage where the most people are present.
Many people inadvertently follow the trend or project, making some money in stocks or cryptocurrencies, exceeding their salaries. They feel they can become full-time investors.
So they resign and enter the market full-time, studying and watching the market day and night. After two years, most have lost money, some are even deeply in debt, and when they want to turn back, they find they can't.
In this stage, people make money to improve their lives, and a portion of their earnings is used to make themselves happy. Thus, the experience of making money is also the happiest.
However, once this money is lost, it brings you pain. Therefore, you both fear loss and hope for overnight wealth. Because if you become rich slowly, it’s too torturous.
Second level:
You will find that investing is not a game of luck, nor can you make money just by listening to others. It is a process of finding rules and regulations. Making money is the reward for respecting these rules.
What we often hear, for example:
When others are fearful, I am greedy.
When turmoil comes, it’s time to build positions. And so on.
These are not just clichés, but universal trading system rules summarized by countless practitioners.
To be more specific, this is the law of investing, not speculation.
Investing requires multiple conditions and factors to overlap. The conditions and factors themselves have patterns and rules that can be analyzed and judged.
Although it’s not always accurate, the win rate is generally high.
So if you are not destined for success, you must establish your own trading system. At the very least, you must respect this concept.
Reaching this step, some of the joy of making money will slowly drift away from you, as you need to gradually become a rational, repetitive, cold, and ruthless person.
Execute decisively, accept failure, and review rationally.
Thus, it goes back and forth.
Third level:
This is a bit far-fetched; most of us will not even touch the surface of this level in our lifetime.
There are no numerical techniques here, only principles, only human nature.
Cooperation, strategizing, control, retreat, power dynamics.
You are both the one who establishes the rules and the one who controls the overall situation.
Let those who cooperate with you make money. Make unknown people want to cooperate with you, making those who have made money reluctant to leave, and those who owe wanting to turn their fortunes around. Let all this remain within the rules, forming value anchoring, creating wealth definition rights; this design is the ultimate form of investment.
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