The first step for ordinary people to understand the economy is not to read financial news every day. Because news only tells you 'what happened', but not 'why it happened'. What is truly useful is to first build a macro financial map in your mind. In this map, the most important thing is not a bunch of complex nouns, but six buttons: Interest rates, inflation, credit, finance, exchange rates, employment. one ️⃣ Interest rates determine whether money is expensive or not. two ️⃣ Inflation determines whether purchasing power has been eroded. three ️⃣ Credit determines the market's ability to borrow money easily. four ️⃣ Finance determines whether the government will shrink or expand. five ️⃣ The exchange rate determines the flow of domestic currency and external funds. six ️⃣ Employment determines residents' income, consumption, and confidence. As long as ordinary people understand these 6 buttons first, many news stories will no longer be fragmented. one ️⃣ For example, why did the US stock market rise? Perhaps it's not that the company has suddenly become stronger, but rather that interest rate expectations have come down. two ️⃣ Why is gold rising? Perhaps it's not that everyone suddenly loves gold, but rather that monetary credit is beginning to be questioned. three ️⃣ Why is A-shares weak? Perhaps it's not that all the companies are not doing well, but rather that credit, real estate, and residents' confidence have not been fully restored. four ️⃣ Why did BTC suddenly pull? Perhaps it's not just the sentiment in the cryptocurrency industry, but also the changes in liquidity, the US dollar cycle, and risk appetite. Many people lose money in investments not because they don't work hard, but because they chase after results every day without looking at variables. I get excited when I see a message, doubt when I see a bearish candlestick, and want to switch tracks when I see others making money. But economic operation is not driven by emotions, there is a transmission chain behind it: Inflation affects interest rates, and interest rates affect valuations; Credit affects enterprise expansion, while finance affects demand; Employment affects consumption, exchange rate affects capital flow; Finally reflected in the prices of stocks, bonds, gold, commodities, real estate, and funds. So ordinary people should not be greedy for too much when establishing an "economic radar" at the beginning. First, use one month to create a map and know which buttons are in the economic system. Use another 2 months to supplement the foundation of economics and understand how each variable affects assets. Finally, slowly incorporate it into your investment system. My understanding is simple: Watching news is receiving information. Looking at variables is establishing judgments. Looking at the transmission chain is the training of investment ability. Ordinary people don't need to become economists. But at least you should know: Where does money come from, why is money expensive, and where does money go. By understanding these three questions, investment will not always be driven by emotions.