In 1720, the share price of the British South Sea Company skyrocketed, and the great physicist, mathematician, and politician

Newton invested £7,000 to buy shares. In July of that year, the South Sea Company's shares rose to £1,000

A stock has increased 8 times.

At this time, he increased the amount to buy, but by December, the stock price dropped back to its original level. newton loss

£20,000, equivalent to his salary for 10 years.

In great pain, Newton said: “I can calculate the orbits of celestial bodies, but it is very difficult to predict them.

People are crazy. "

Newton could not have thought that people today are crazier than that! For example: Bitcoin, just in 2017

The annual increase amounted to 1700%. The entire price chart resembles a roller coaster, with sharp spikes and sharp drops.

Investors are going crazy about it. Lowest Bitcoin price all year in January 2017 was 789 USD and in December 2017

The highest price is 18,674 USD. In 2010, when Bitcoin first started being traded, the price

It's less than 1 cent! After calculating, in 8 years, Bitcoin has doubled 1.8 million times! This is possible

It can be considered one of the most exaggerated financial speculations in history!

The market is always crazy. What we have to do is find profits from this crazy market.

profit opportunity.

I don't play Bitcoin. Although some market conditions are good, you still have to see if you are suitable for them.

There are crazy times in the stock market. I entered this industry in 2010. I was still in college at that time.

learn. My first stock trade was buying a lot of China Southern Locomotive stock using my father's account. 2007

At the time, global markets were buoyant but became volatile in the second half of 2008.

It was all overshadowed by the subprime mortgage crisis in the US and the collapse of the global stock market. I have never experienced this

Calendar, what a pity. I was fortunate to participate in the 2014-2015 bull market. market madness

Just like real estate speculation, the difference is: real estate speculation is only for some people, but stock trading feels like everyone is involved.

join! After all, this threshold is much lower than for real estate speculation. At that time, many people borrowed money to speculate in stocks, and they also used money allocations.

capital. However, the post-2015 gloom continues to this day.

The friends around me lost money time and time again. A friend even used it to buy money in Shanghai.

The entire amount of money to build a wedding house was lost. Many people know nothing about this market and just jump into it.

Come on, I have no ability to rate stocks at all, let alone have a perception of risk. like one

The child took a brick and wanted to go hunting. When they arrived at this market, they narrowly escaped death and had to pay a heavy price.

Expensive.

Stock trading is not possible this way. Besides money, you need many more things, such as knowledge

knowledge.

The magic 2:8 rule

There is a classic saying in the business world: "80% of revenue comes from 20% of customers".

It is very easy to understand and very practical. The core meaning of its expression is the 80-20 rule. Maybe everyone

Everyone has heard of the 28-20 rule but does not deeply understand its practical meaning and usage. two

The Eight Rules not only have great implications for business but are also extremely useful for our investment transactions.

often.

The 80/20 rule, also known as the 80/20 rule, the Pareto rule, the important and unimportant few rules

Majority rule, imbalance principle, etc. Currently widely used in many fields. Its inventor Pare

Thomas believes that in any group of things, the most important and core things only make up a small part

The remaining 20% ​​and 80%, although they are the majority, are only secondary, so they are also called the 80-20 rule.

In 1897, Italian economist Pareto noticed the ratio of assets and income of the British at that time.

There are some subtle relationships. During the survey sampling process, it was found that most of the assets flowed into the hands of a few people.

inside. He also found from the data that this situation also exists in other countries and that it occurs to a certain extent.

similar relationship. Thus, Pareto discovered from a large number of specific facts: About 20% of a society's population

People account for 80% of social wealth. He then came to the conclusion that wealth was unevenly distributed among the people.

symmetrical.

This is a figure from the late 19th century, which seemed a bit exaggerated at the time. But now, the difference

The situation is somewhat "getting worse". According to 2016 statistics, about 2.55 million

Of the total household assets worth $1 billion, 45.6% is owned by a very few people in the world.

In 2016, the number of millionaires was 33 million, accounting for only 0.7% of the global adult population and

This rate is still decreasing year by year. But at the bottom of the wealth pyramid, there are each of the world's 3.5 billion adults

This group's net worth is less than $10,000 and its total household wealth is just $6 trillion.

Original. In other words, about 0.7% of people own 45% of the wealth, while the remaining 55%

Wealth is owned by the remaining 99.3% of people. If you're interested, you might want to check out Forbes

The Rich List allows you to see how incredibly rich the hundreds of richest people in the world are.

rich!

There are many imbalances in life. People consider the 28/20 rule to be inequalities.

Explain this phenomenon, regardless of whether the results are 80% and 20% accurate or not. Of course, from statistics

In general, 80% and 20% accuracy are essentially impossible. Usually the 28/20 rule talks about

Core 20%, not secondary 80%.

One of the main applications of the 80/20 rule is to allow us to discover the core 20% and strengthen this.

point.

Drinking coffee is a habit. People who don't drink coffee may not drink a cup of coffee for a month.

Coffee drinkers can drink one or two cups of coffee per day. If 20% of coffee drinkers drink

80% of coffee, this group of people should be the focus of coffee suppliers. try as much as possible

In order for these 20% of people to buy, it is best for them to increase their coffee consumption. Coffee traders in reality

For practical reasons, the remaining 80% of coffee drinkers can be ignored as their consumption only accounts for

20%。

Similarly, if a company discovers that 80% of its profits come from 20% of its customers, it will

This effort will make those 20% of customers willing to expand their cooperation with it. If attention is evenly distributed between

The output of all customers is certainly not equal to the output of specializing in 20% of customers. Furthermore, if the company

It is seen that 80% of profits come from 20% of products, then this company should try its best to sell those premium products

Profitable products.

Another important application of the 80/20 rule is to use 80% of inputs to produce only 20% of production.

Make improvements to improve unhealthy output rates.

As a very common and effective law of nature, we will apply it more often

in our work and daily life. And it also plays a role in our daily lives.

Hand shaped hand, e.g. stock market, futures market, commodity market.

80% of investors in the financial market only think about how to make profits, and only 20% think about how to make profits.

Consider contingency strategies for losses. As a result, only 20% can generate long-term profits, while 80% of investments

But they often lose money. The 20% who make profits have 80% of the accurate and valuable information in the market, and

80% of people who lose money do not collect information carefully for various reasons but only collect information through stock evaluation or other means.

Only 20% of information is available. When 80% of people are optimistic about the market outlook, the stock market is actually near its peak.

When 80% of people have a negative view of the market outlook, the stock market is really close to bottoming out. And out of 20% of people make a profit

On the other hand, only 20% of people can copy the bottom and escape the top, while 80% of people cannot get the best position.

belong to. The quantitative limit outlined by the “Twenty-eight Rule” is not fixed, some people also use the “Nineteen Phenomenon” to express the same thing.

This means they believe that only 1/10 of the market can make a profit.

About 80% of a broker's commission comes from the transactions of 20% of the clients they need.

Either he likes short-term speculation, or he has a lot of money. If there are a few customers who have a lot of money and like to speculate,

In short, some people can earn 80% commission on all brokerage work!

80% of an investor's profits can come from 20% of trades. Therefore, it is very necessary for us to reconsider

Let's look at the difference between our trading when we are profitable and when we are losing, because this can be a good thing.

It allows us to avoid repeating those losing situations, while also improving our ability to be confident when

Trade with confidence. Large-cap index stocks, which make up only 20% of the market, play a role in 80% of the index's rise and fall.

Therefore, when researching and evaluating market trends, you should pay attention to the performance of these indicator stocks.

20% of institutions and large investors in the stock market hold 80% of mainstream funds and 80% of retail investors hold

Therefore, 20% of funds, investors should learn to grasp the trends of mainstream funds to be able to

Help us make a profit.

Successful investors spend 80% of their time studying and researching and 20% of their time practicing. lose

Failed investors spend 80% of their time

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