One, Introduction: The Nature of Wealth and Opportunities for Ordinary People
In today's complex and ever-changing economic environment, how can ordinary people find their opportunities in the market and achieve wealth accumulation? This article will systematically explore how ordinary people can relatively easily make money in the market from multiple dimensions, including the dividends of the era, industry cycles, individual efforts, and trading strategies.
The birth of wealth is often not the result of a single factor but rather the intersection of multiple causes. Luck, cycles, industry trends, and personal abilities collectively constitute the core elements of wealth growth. Especially for ordinary people, seizing opportunities of the era and acting in accordance with trends is more important than simply relying on hard work.
Two, The Dividends of the Era: The Core Driving Force of Wealth Accumulation
1. Wealth Opportunities in History
Throughout history, the vast majority of wealth accumulation has been driven by the dividends of the era. Here are several typical examples:
The rise of e-commerce: The emergence of platforms like Taobao has created a group of merchants and entrepreneurs who thrive on these platforms.
Social media: The popularization of platforms like WeChat has led to the explosion of the traffic economy, with many businesses and individuals rapidly accumulating wealth through social e-commerce.
The short video boom: The rise of Douyin has not only changed the form of content dissemination but has also spawned new business models and the influencer economy.
These examples illustrate that the birth of wealth is often accompanied by rapid industry growth and technological transformation. Being able to enter the right field at the right time is key to achieving a leap in wealth.
2. Opportunities Across Different Generations
Different eras present different wealth opportunities. The previous generation's opportunities were concentrated in the real economy and real estate, while contemporary young people's opportunities are more focused on the internet and virtual economy:
The generation of parents: Physical stores and real estate are the main avenues for wealth accumulation. Families that seize these two opportunities can maintain basic living guarantees even during economic downturns.
The younger generation: The internet economy, virtual currencies, and digital assets have become new points of wealth growth.
3. The Power of Incremental Markets and Long Cycles
Driven by the dividends of the era, the incremental market and long cycles are important ways for ordinary people to achieve wealth growth. Taking the cryptocurrency circle as an example, the emergence of the incremental market accompanies a large influx of new funds, driving asset prices to rise. This 'increase in water level brought about by excessive issuance of currency/hot money' allows the assets in the hands of ordinary people to appreciate.
Conversely, in the existing market, competition is much fiercer, making it difficult for ordinary people to achieve significant gains.
Three, Effort and Opportunity: How to Correctly Evaluate Personal Ability
1. The Limits of Effort
Although effort is indispensable in wealth accumulation, in the face of the trends of the times, pure effort appears relatively limited. As a saying goes: 'Effort is worth little; seizing opportunities is the key.' In an industry full of opportunities, ordinary people may achieve excessive returns even with relatively less effort.
2. Comparison of Advantages and Disadvantages
For ordinary people, to make money in the market, it is essential to clearly understand their strengths and weaknesses:
Advantage: Ordinary people can reduce trial and error costs by learning from and imitating the experiences of successful individuals.
Disadvantage: Lack of professional knowledge, market sensitivity, and execution ability makes it easy for ordinary people to be 'harvested' by professional investors in the existing market.
Therefore, ordinary people should focus on studying potential incremental markets rather than competing with professionals in the existing market.
Four, Trading Strategies: How to Build a Positive Expectation Profit Model
1. Risks of the Existing Market
In the existing market, short-term speculation essentially involves zero-sum games with other investors, and even negative-sum games. The following are the typical characteristics of the existing market:
High competitiveness: Many participants, mixing professional investors and retail investors.
Negative expectation strategy: Due to trading costs and withdrawal mechanisms, most speculators ultimately incur losses.
Data shows that in the existing market, less than 10% of speculators can achieve long-term profitability, and the principle of 'one profit, two break-even, seven losses' makes it difficult for most ordinary people to profit.
2. The potential of the incremental market
In contrast, the incremental market offers greater opportunities for ordinary people. By choosing the incremental market, ordinary people can benefit from the natural growth brought about by market expansion without having to compete intensely with other investors. For example:
Long-term holding of valuable coins: In the cryptocurrency circle, holding valuable coins (such as BTC, ETH) has a higher probability of success than frequent trading.
Focus on emerging fields: Research potential incremental markets, such as emerging technologies, industrial upgrades, and policy support areas.
3. Limitations of Technical Analysis
Many people believe that stable profits can be achieved through technical analysis of charting and observing indicators. However, this is not the case. Technical analysis is merely a tool; the real factors determining profitability include:
Positive expectation trading strategy: Constructing trading models that can be profitable over the long term.
Capital management and position increase methods: Reasonably allocating funds to reduce risk.
Execution ability and psychological quality: Staying calm in the face of market fluctuations and strictly executing established strategies.
Five, Thought Framework: The Core Path to Enhancing Cognition
1. The Importance of Cognition
Whether in investment trading or daily decision-making, the final outcome depends on an individual's thinking and logical framework. If the initial entry point is wrong, subsequent efforts will only yield diminished returns. Therefore, enhancing cognition is the necessary path for ordinary people to achieve financial freedom.
2. Learning and Growth
For ordinary people, reading and learning are the lowest-cost, most efficient ways to improve. By consistently committing to learning over the long term, individuals can gradually enhance their depth and breadth of knowledge, ultimately reflected in wealth accumulation and an improved quality of life.
Learning resources: Choose authoritative and practical learning materials, such as summaries and experience sharing from industry leaders.
Action guide: Whether investors, researchers, or ecosystem builders, everyone needs to follow a set of scientific trading principles to reduce risk and enhance returns.
Six, Conclusion: The Philosophy of Wealth and Reflections on Life
The accumulation of wealth is not just an economic activity but also a philosophy of life. As the saying goes, 'Life is like a dream, and dreams are like life'; the pursuit of wealth is a prolonged dream, while market fluctuations are the ups and downs within that dream.
For ordinary people, the real challenge lies in how to break out of this dream and find their own path to wealth. By seizing opportunities of the era, enhancing cognitive levels, and constructing positively expected trading strategies, ordinary people have every chance to achieve wealth growth in the market.
Ultimately, the accumulation of wealth is not only a success on a material level but also a sublimation of thinking and cognition. I hope every ordinary person can find their place in the waves of the era, act in accordance with the trends, and achieve financial freedom.
