Recently, a friend's fund was trapped and he borrowed money to cover the position

I told him that each transaction is independent

The only reason you open a position is to be optimistic about the trend.

Lowering costs is just deceiving yourself.

He said it's okay, as long as I don't cut it, it will come back

This is a typical case of not understanding the nature of money.

When we ask a person how much money he has

In fact, the question is what is his maximum ability to pay at this moment.

The concept of money only makes sense if it has a time coordinate

Just like someone promised to give you 1 billion in 500 years

Even without considering inflation, it doesn't make any sense.

When your fund drops 50%

Your ability to pay has been reduced.

The loss has already happened and can never be changed.

Even if the fund increases 10 times next month, making you earn 10 million

It is also impossible to eliminate the impact of the previous loss.

Because of the 50% loss of the principal

This will make you lose 10 million yuan in the subsequent rise.

So a loss is a loss.

Don't use the word "locked in" to comfort yourself

Being able to face your own losses is the beginning.

When I was 22, I watched a TV series called "Big Times"

From then on, I got into stocks and futures, and studied Gann theory day and night.

Returnee trading and fundamentals, as well as various technical forms.

Half a year later, I understood a truth: no one can predict tomorrow's rise or fall, and even the rise or fall itself is not important. The only important thing is the position management in the transaction. The money I made in the past six months by entering and exiting the market with full positions, was actually just luck.

A single "black swan" event can completely knock me out of the game. For an ordinary person like me, the mathematical expectation of this game is close to negative infinity.

It was a losing game. After thinking for 5 minutes, I decisively sold all my stocks and closed all my futures contracts. I used the profits to reward myself with a car similar to the one that Lu Tao drove in the popular TV series “Struggle” at the time, and started “traveling thousands of miles”, staying away from stocks and futures from then on.

Until today, in 11 years, I have not bought any stocks. No matter how good the market is, I am too lazy to watch it. Let it rise as it pleases, like the breeze blowing over the hills.

It was not until I fell into the trap of real estate that I began to appreciate the advantages of stocks, namely their super strong liquidity.

As long as the scale of funds is not large, the stock market value can be instantly converted into current payment ability, but this cannot be achieved with real estate. This is why many people now say they have assets of tens of millions, but cannot even withdraw 100,000 yuan from their cards.

It is because these assets are only expectations, and in order to turn expectations into payment capabilities, they need to be "discounted".

For example, if you have a house worth 20 million yuan that has been on the market for half a year but has not been sold, and then he urgently needs money and cuts the price madly, and finally it is sold for 10 million yuan, then the real price of the house is 10 million yuan, not 20 million yuan as you think. Because the volume comes before the price, the basis of the price is the transaction, not the expectation.

At this time, the discount rate of this house is 50%. So don’t make excuses if you have no money in your pocket. You are just poor. Except for the ability to pay at this moment, all other assets and liabilities are called expectations.

The essence of money is the ability to pay. The RMB in your hand is the central bank's liability to you. It is a debt claim that can be transferred at any time. It is an IOU and a promise from the central bank.

Why is this promise credible? Because of the existence of the violent machine. After the dollar was decoupled from gold, how could it still circulate around the world? Because those who do not accept dollar settlement have been settled by the US military.

So what can we buy with these IOUs issued by the central bank? In fact, every penny we spend can essentially buy one thing, that is, other people's time.

You say that's not right. When I go to a restaurant to eat, don't other people have purchase costs? In fact, whether you buy a car, a house, a meal, or a haircut, these so-called material costs and purchase costs are nothing more than the time costs of the people in the previous link.

For example, a plate of beef in a hot pot restaurant costs 30 yuan. The purchase cost of 30 yuan is actually the time cost of wholesalers, logistics personnel, slaughterers, and breeders. The original cost of any commodity is just the time cost of farmers, miners, coal and oil workers.

All the raw resources on the periodic table are free gifts from the universe. So every penny we spend is essentially transformed into the right to control other people's time. Do you see the problem?

The essential difference between the poor and the rich lies only in how well you control your own and other people's time. If a person earns tens of billions a year but is busy every day, is he rich?

I think he is poor because he can't even control his own time. He just keeps using his limited time to exchange for unlimited IOUs, and a large part of these IOUs will not be redeemed in his lifetime, or even impossible to redeem. When wealth reaches a certain level, it no longer belongs to you. Once the Enfeoffment Order arrives, you are nothing.

Many people have an idea that when they make enough money, they will travel around the world. But the problem is that they have never thought about how much is enough. Life is very similar to trading. If you don't have a profit stop point, you will fail miserably. You want a bigger house and a better car, but in fact, what you want is dignity and recognition, and dignity and recognition are not something that can be given to you by external things.

What is a rich person? It means that you can fully control your own time, do what you love, have dignity and recognition. This is the real rich person. Just like Tang Monk said, I came from the Tang Dynasty in the East and went to the West to obtain scriptures, so he could face all the difficulties with a smile. If you know why you live, you can enjoy any kind of life. #token2049 #带你看看币安Launchpad #注意资金安全