Today I listened to Buffett's classic speech again. It is said that Duan Yongping listened to it 10 times.
- He talked about the theory of "getting rich once in a lifetime". Suppose you had $100 million at the beginning of the year. If you don't use leverage, you can make 10% profit. The success rate of using leverage is 99%, and you can make 50% profit. At the end of the year, whether you have $110 million or $150 million, is there a difference? No difference at all. Many times, we pay a great price to pursue things beyond our actual needs, which is meaningless and can easily lead to losses of what we already have.
He mentioned a classic case: Suppose you hand me a gun with 1000 chambers, or even a million chambers, with only one chamber containing a bullet. You say, "Point the gun at your temple, pull the trigger, and I'll give you $1 million. Will you do it?" For such a thing, even if you offer me $10 million, I won't do it. It's meaningless!
This recent downturn is actually a typical example! I have always warned not to touch leverage, contracts, or borrow money to speculate on coins. If you have the ability, spot trading can also make you rich slowly. Using leverage without the ability will only accelerate your demise!
He mentioned a company: Long-Term Capital Management. It was composed of an investment team of mathematical geniuses, including two Nobel Prize winners. But due to a small probability event—the 1997 Asian financial crisis, they eventually went bankrupt because of leverage. This logic is similar to 312. If the current price is $64,000, and due to the spread of the Asian financial storm and the Middle East war, the BTC price drops by half in 2 days, is there any risk to your position? Such small probability events often have extremely strong destructive power, just like the global outbreak of COVID-19 in 312, causing the short-term decline of the US stock market and BTC beyond everyone's expectations. In this case, if BTC rises to $100,000 or $200,000 in the future, if it is liquidated, it will be gone forever! So it's best not to touch leverage at all!
Invest in what you understand. Everyone's capacity is limited, and not everyone can understand many tracks and projects. That's okay. Only invest in the directions and tracks that you understand. For example, in this cycle, we mainly focus on #AI #DEPIN #RWA #GAMEFI #SOL ecosystem, these 5 major tracks. The company's researchers basically read dozens of research reports per person every day, and they are still very busy. There are too many projects, and the iterations are too fast. There are also many other excellent and promising tracks, but we have less exposure to them, so naturally we have much less investment in them.
Stay away from noisy environments as much as possible. There are three ways to make money in the market.
The first is money from information advantage, commonly known as insider trading. Although it is illegal in the stock market, it has not been defined in the cryptocurrency market. But the essence of this insider trading is the free exchange of value. Someone gives you information, and at the same time, you have to pay some favors and costs in return.
The second is money from emotions, such as the recently popular NFTs and tokens. The emotional atmosphere in both the Chinese and English communities has already been created. Making money is also a high probability event. It's just a matter of who can react quickly when the market cools down.
The third is money from cycles. Grasp the core narrative of the cycle, such as AI, DEPIN, RWA, GAMEFI, and the SOL ecosystem in this cycle. Position yourself at the bottom of the cycle and exit during the FOMO period at the cycle peak. Partners familiar with our Twitter account probably know that most of the coins we invest in have very low volatility. This is because the truly valuable leading coins, which can accommodate large amounts of capital, have already been discovered and defined in value. Buying and selling, it's just about increasing the amount of coins, nothing more.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
