There is no right or wrong in investment, only profit and loss Soros' view of reflexivity may sound mystical and not as easy to understand as Buffett's, but his approach has a stronger explanatory power for the market. Soros was bearish on the US economy back then, and normal people would choose to short the US stock market because the US dollar has been strong for ten years, and the US stock market has just emerged from a ten-year bear market. However, Soros chose to short the US dollar, Mainly because currency is purely speculative and more in line with the principle of reflexivity, while stocks have many unpredictable factors outside of macroeconomics. The essence of Soros' practical experience lies in a phrase he often says: "It doesn't matter whether you are right or wrong, what really matters is how much money you can earn when you are right and how much money you can lose when you are wrong Sniping the pound is Soros' most famous battle, and when the president of Quantum Fund reported to him, Soros acknowledged it. However, when he heard that the president was ready to invest 100%, he sneered, "This is also called a position? This kind of money making opportunity should be given full attention When most investors are optimistic about an investment opportunity, they always like to test a small portion of their position first. If the direction is right, they can increase their position. However, Soros' method is the opposite. If he truly believes in an opportunity, he will give it his all from the beginning. The reason is simple: the formation of "illusions and lies" is sometimes very fast, and the collapse is sometimes very short. Often, the beginning is the safest, and when the market agrees with your direction before investing, it may be time for a reversal. Everyone knows that Soros suffered losses in the Hong Kong market due to his investments during the Asian financial crisis, but he did not actually lose money, he just did not achieve his original plan; Later, it suffered significant losses in the Russian market, but it did not harm the fundamentals. In the famous investment cases of Soros and his quantum fund, many of the profits were decisive victories that could double the size, while most of the losses were superficial injuries. Choosing the right investment doesn't mean you can make money. The difference between profits based on "illusion" and drawdown based on "illusion reversal" ultimately determines your final level of profit.