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Every time I talk to my friends about investment, many people ask this question. Everyone wants to find a mysterious skill that can win, win and win constantly, and can turn their assets several times. Besides winning often, they also want to win more.
I have bad news and good news. The bad news is: that there is a way to make a steady profit, but for most people, it’s not the same as it is. The good news is that there is a more straightforward way than making sure: find a way to lose money and avoid it. Although some methods have a high probability of making money, they are unstable, not long-term, not enough, you can’t do it, or you can’t make money. For example, suppose you listen to inside information. In that case, the probability of making a steady profit is very high, but first, it is illegal. Second, you don’t have a good channel, and third, you can’t identify. Some money just can’t be earned by you.
“We don’t know what God is. But we know what is not God.”
It means that if you can exclude more irrelevant things, you can get closer to the essence of things.
Similarly, in terms of investment, excluding the possibility of losing more money, the closer to stable profit! The key is to “use” these “high probability of losing money” methods to reduce the possibility of losing money, and the closer it will be to the essence of making money. But why do so few people do? Because: too much trouble. Most people want to make a steady profit, earn more, and are afraid of losing money. But even if there is a way to do it, people begin to dislike trouble. Interestingly, most people are too troublesome and can’t do it. It’s just a niche for another few people to make steady profits. In the so-called market, buyers and sellers “must have different views,” and transactions with different views will be established. If they have the same opinions, the market will disappear because there is no trading.