(Dry stuff) Are you afraid that you won’t be able to make money if you have this knowledge?

The essence of making money in the currency circle

To make money in the currency circle, just a few points:

Poor cognition: If you have a high cognition dimension, you can make money. For example, during the lunch round, I did doge because he was better at drawing lines than the teacher? No. Because he has a high cognitive dimension and his understanding of investment is several levels higher than most people, it can be seen that his prediction of DOGE a few months ago is the main driving force for the rise of DOGE in this round. Or Tony Fat Man, whose understanding of trading is several levels higher than others, can make a lot of money through trading.

Information gap: This is mainly reflected in the high-odds gameplay that appears in the early stages of some new narratives, such as digging and selling, hair removal, and white picking. If you intervene earlier than others, you can earn good profits. As for how to have poor information, it is quite long, so I won’t go into details here. I told some brothers in a small group. In the past, Weibo also covered it here and there, and anyone who is interested can find it.

Poor execution: either hard work or skill. When there is no difference in cognition or information, what widens the income gap between ordinary people is poor execution. If you work hard or have skills, you can make money. For example, masturbate hard by yourself, masturbate in batches, make tools, etc. Teacher Wang, Director, He Bi, and several NFT players who sell tools/play with tools are all typical examples.

These three are the foundation, and the three can also build building blocks with each other, such as poor cognition combined with poor execution, poor information combined with poor execution, etc.; for example, Vida in the equation makes money by relying on poor cognition + poor information + poor execution. This model also determines His trading behavior has high returns, low risks, and strong sustainability. This is also the most stable money-making model that I have seen in the cryptocurrency industry for several years.

If you don't have any of the three, just imagine that you can make money by following a single order or drawing dozens of lines to make the K-line drawing look like a watercolor painting. Go out and deliver the food as soon as possible.

How to improve your investment winning rate + error tolerance rate

How to improve your investment winning rate && error tolerance rate?

1. Lower expectations:

If you fantasize about getting rich quickly and do it 100 times in a year, it is actually a very difficult thing to achieve. Luck and ability are both indispensable. There are many people with desire, but too few people with ability. Most people who want to get rich will eventually choose a stud to gamble on luck: when they encounter a small project, stud;A teacher called out the order, Stud. Your system is most likely fragile, and your account will shrink from game to game.

I believe that if you go slower, you can reach the end point. At least you will be more rational when making decisions. If you are rational in the market, you can already ensure that you will not be cut too hard.

2. Odds calculation + position management, both are indispensable:

No matter how high you think the odds of a certain investment are, you still have the risk of being unlucky and causing your principal to suffer a large retracement or even bankruptcy. You can completely simulate this process with code and calculate a certain profit-loss ratio under a certain profit-loss ratio. The best investment position given the winning rate. Even if your winning rate is as high as 90%, the odds are 1:1

(Generally speaking, with such a high winning rate, the profit-loss ratio is much lower than most people imagine). As long as stud is played, there is still a high possibility of substantial losses.

Position management is the core of your survival. It will be much better to invest on the basis of position management.

a. If you are looking for projects, the odds of many projects are easy to calculate and quite high. You can invest up to 5% of the principal in each project. Stop loss/exit when the fundamentals change. This will allow you to lose money dozens of times in a row; if you still don't make money dozens of times, then work hard and don't force yourself to do things you are not good at. A single loss will not have any impact on you. One gain is enough for you to lose 10 times. Rely on mathematics rather than luck, and the principal will always rise slowly.

b. If you do transactions, avoid betting on long and short, and choose a method with high odds, you can still outperform most people. Part of the position is in cash, and it is left to be copied after a big drop.

At the end of the year, judging from historical data, there will be a considerable and rapid plunge in the currency circle basically every half a year. After a 20% drop, you will place orders all the way, and you can always make good profits after buying them; some positions will be opened for arbitrage, and if there is no market, you will lose money. Drink some soup and eat meat when the market is good.

In this way, you can liberate your investment behavior from prediction, and switch from predicting the market to following the market. Although the probability of return is not as high as that of dog bettors, the security and stability of your investment will be much higher. You can live longer and better than 95% of dog bettors.

Of course, this also has internal barriers, a. It is relatively hard and requires execution. 2. Desires need to be restrained. Most people who are accustomed to the sweetness of stud cannot do it.

3. Off-site cash flow:

Buffett's insurance float is his cash flow, which is also Buffett's moat for investment. With the supplement of off-site cash flow, your investment mentality will be calmer, it will be easier to make rational decisions, you will be more willing to gamble when faced with opportunities with high odds, and your investment error tolerance will be doubled.

Therefore, don’t be addicted to long and short bets. Improving your abilities is the top priority. Love flies to those who are not short of love, and money will flow to those who are not short of money. Don't rush to get money.

Of course, most people won’t listen to all this. These lazy dogs will still harbor fantasies. They imagine that they can get rich by finding someone who calls out orders every day and let them tap their fingers. Or they imagine that they can become successful if they learn some technical analysis. The god who controls the market and makes money from it.