This book involves some basic investment common sense, as well as easy-to-understand principles. After reading it carefully, I found that there are 6 unspoken investment rules hidden in the book.

1. The ability that investors should master most: learning

At the beginning of this book, Li Xiaolai redefined "leeks": What does "leeks" look like? They don't study, they don't research, they are short-sighted, they blame others... Such people, in my eyes, regardless of whether they are rich or not, regardless of their IQ, are "failed speculators" and are absolutely stupid.

And pointed out a mistake that "leeks" often make in investment: the reason why leeks are leeks is mostly due to the same reason - they start buying as soon as they enter the market!

2 laws of “leek” investment: For all novices, this law is almost eternal and unchanging. As soon as you buy it, it will fall, and as soon as you sell it, it will rise!

And the corresponding solutions:

① Don’t spend all your money as soon as you enter the market

② Learn and make money off the market

Li Xiaolai said: Speculators refuse to learn, investors are good at learning, and the ability that traders should master the most is learning. Before trading, study carefully and learn in depth; after trading, whether you win or lose, you must summarize and correct your own ideas and thinking in order to improve your next decision. In a bear market, what else can you do besides making money and covering your positions off-site? Learn! At least start to exercise your learning ability.

Seeing this, I believe many readers have begun to reflect: How long has it been since I last studied hard? How long has it been since I last read a book? When investing, did I know nothing and just rely on my intuition?

The more I thought about it, the more ashamed I felt. Then I began to reflect: I deserved to be cut because I didn’t study hard. This is Mr. Li’s usual method of convincing the “leeks”. Of course, what he said is really worth reflecting on for each of us.

2. Be good at exploring the essence beneath the surface

There is no one in this world who does not learn. If the investment logic is wrong and the timing of buying is wrong, then more mistakes will be made later. Therefore, the leeks may not be unlearning, they may be wrong from the beginning (thinking that trading is a zero-sum game).

What was their mistake? Li Xiaolai said that it was because investors ignored the economic cycle and the alternation between bull and bear markets. If they made the right move at the wrong time, then the final solution was to wait for the next opportunity.

At the same time, tell readers not to participate in any zero-sum games, because it is more of a waste of time than gambling! (In reality, fair gambling does not actually exist. In order to ensure fairness, or to use fairness as a means, all casinos have designed the dealer's winning rate.)

So we should not be moved by some appearances, but actively explore the essence under the appearances. Including "value investment" also needs to look at the timing. If you miss this opportunity, you can wait patiently for the next one.

3. Learn to draw lessons from other people’s failures

If you want to escape the "fate of leeks", you must learn the concept that: never take risks if you can avoid them; even when you must take risks, let the fools take them, and you gain experience by observing from the side.

This must be Li Xiaolai's investment wisdom. If you want to succeed, don't take risks blindly. When it comes to risk, always learn to observe other people's risk-taking practices to summarize and generalize, rather than taking risks through your own practice.

4. Stop loss in time and reduce trading frequency

When investing, you need to stop losses in time and try to reduce the frequency of transactions as much as possible. Not being greedy does not mean that you can stop losses in time. It is still difficult for an investor to be not greedy. After all, it is very anti-human and difficult to enforce. Truly useful suggestions must be executable.

So how do you stop loss? You can estimate the "daily fluctuation range" of the trading target. The maximum tolerable loss should be greater than this range, and you should learn to "prepare for the worse". For example: if the daily fluctuation range of a certain virtual currency is 25%, then your "stop loss line" should be higher than 25%, such as 40%, because you are considering the risk, especially the risk in the trading market with volatile price fluctuations. Therefore, "preparing for the worse" is always more reliable than "blind optimism".

But this is not enough. If the leeks want to turn over, they must reduce the trading frequency as much as possible. The trading frequency should not be too high. The higher the trading frequency, the lower the risk-return ratio. The possibility of suddenly generating huge returns in such a short period of time is extremely low.

5. Pain + reflection = progress

Of course, even if we know how to stop loss and reduce the frequency of transactions, we may not be able to make good investments. Then at this time, we need pain and reflection. With both, we will inevitably make progress. Here, Li Xiaolai quoted a sentence from Dalio of Bridgewater Fund: Pain + reflection = progress. If novices want to avoid the fate of leeks, they must reflect every day, reflect at all times, and reflect again after reflection.

6. Loneliness is the most valuable quality

Learn to make your own decisions. Listen to the majority, refer to the opinions of a few, and learn to make your own decisions. After your thinking ability, research and judgment ability gradually mature, learn to make your own decisions. In the trading market, you must and can only be responsible for your own decisions. Learning to make your own decisions is not only investment wisdom, but also life wisdom. Learn to be alone. Being alone is one of the best ways to promote productivity. Be sure to treat your "loneliness" well. This is very important. You may feel lonely at the beginning, but it will not be like this in the future. Later, you will derive your own life methodology. #BTC #BinanceTournament