Let me tell you a familiar story...Think from a different perspective, and you will understand the little tricks of investment...

Once upon a time, there was an old lady who had two sons. The eldest son sold umbrellas and the youngest son sold shoes. When it rained, the old lady said worriedly: "Hey! My youngest son's shoes can't be sold on rainy days!" The sky cleared up and the sun came out, but the old lady was still worried: "Hey! Look at this sunny day, who will buy my eldest son's umbrella!" In this way, the old lady was worried all day long, couldn't eat, and couldn't sleep.

Seeing her getting older day by day, the neighbors said to her: "Grandma, you are so lucky! When it rains, your eldest son's umbrellas sell very well, and when the sky clears, your youngest son's store is full of customers. It's really enviable!" The old lady thought, yes! Why didn't I think of it before! From then on, the old lady was no longer worried. She ate well, slept well, and was happy all day long. Everyone said that she seemed to have changed.

The story ends here.

I already understood this story.

Isn't it just looking at the problem from a different angle?

Today we will also change our angle and look at the problem of selling umbrellas and shoes from a financial perspective.

Using the concept of investment, the old woman's two sons have a reasonable business layout and use hedging. In finance, hedging refers to an investment that deliberately reduces the risk of another investment. It is a method of reducing business risks while still making profits in investment. Generally, hedging is to conduct two transactions at the same time with related market conditions, opposite directions, equal quantities, and offsetting profits and losses.

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