Today I will answer a message from a full-level reader.
Actually, I have talked about this question before, just a few days ago, about whether you can rely on others to shout orders and rely on others' predictions of the market to make investments.
Of course not.
He went bankrupt several times. At first, he didn't study anything and played blindly. Later, he learned some hedging strategies from Wall Street.
Then he felt that the sky was clear and the rain stopped, and he was fine again.
Invest with guests.
This is actually normal. In the initial stage, it is much faster to use other people's funds than to use your own funds.
Because you have less capital at that time.
But what happens when you use other people's funds to invest? He will be more bold.
This should be easy for you to understand.
Would you be more cautious if you sold your parents' house to start a business? Or would you be more cautious if you burned the money of angel investors to start a business?
Definitely the former.
But in order to quickly increase the principal in the early stage, many investors adopt the latter model.
It is to use the customers' money to invest. Some people didn't learn it in the end, so they ran away; some people lost a lot of customers' money and figured it out by themselves, so they refused to trade for others.
You know, human nature is like this.
He must hope that you will bear the risk for him when he uses your funds. When there is really no risk, he must hope to use his own funds to pick peaches.
Many retail investors have too small a capital, maybe only dozens or hundreds in total. He will never understand what it means that a specific project is limited and cannot accommodate your funds.
After many bankruptcies, he has become conservative. The problem is that the actual situation of the customers does not allow him to be conservative.
So if he insists on compressing the leverage within the range of several times, what is the only thing he can do?
It is to hold a heavy position.
If you think about it carefully, you will understand that with high leverage, you can hold a light position. With low leverage, you still hold a light position. Then what can you earn?
Unfortunately, he encountered 2008, and fell by 30% in just a few months. He and his customers collectively went bankrupt.
This is his sad ending.