The essence of investing is to make three types of money

The first type is, for example, when we invest in a certain company, profits can bring us dividends, and what we earn is the money from dividends. In mature capital markets, in the long run, the main driving force behind stock price growth comes from accumulated dividends. The second type is also the most common money, competing with other investors. For example, in the Bitcoin market, at any price, there are both bears and bulls; different people’s perceptions lead to buying and selling. During a bull market, you often hear people ask, “Everyone is making money, who is losing?” During a bear market, people often ask, “Everyone is losing money, who is taking the money?” Someone makes money, someone loses. In this game market, the bull market eats pork and has a fat year, while the bear market pays for the bull market. If you lose money, it’s naturally your opponent who profits.

The third type is money released by the central bank through monetary policy. This is the most important money. It may seem unrelated to ordinary people, but in fact, it is closely related to whether each of us can make money.

Many modern successful people like to talk about various principles after making money; in fact, it’s just that the era and trends have provided the platform.

Just like the Bitcoin bull market, a bunch of experts shine on stage, telling stories of sudden wealth. Without the bull market, nothing is.

Here’s a joke: three successful people in an elevator—one is doing push-ups frantically, another is running in place, and the third is doing a handstand.

Finally, the elevator reaches the top floor. Someone asks how they got there. The first says, “I relied on doing push-ups.” The second says, “I relied on running in place.” The third says, “I relied on doing a handstand.”

How did they get there? Of course, by the elevator. In the financial market, the central bank’s monetary policy is like the elevator.

These three types of money are inseparable in many scenarios. For example: the stock market, all three types of money can potentially make profits.

After clarifying the three main types of money to earn from investments, what investors need to do is very simple: first, grasp the major trend of monetary policy in the financial market; second, seek targets that can generate long-term dividend capital appreciation; third, win against other investors in the game.

Winning against other investors in the game is probably what everyone is most interested in. I will explain the first two points in detail when I have time.

Winning against other investors is just the result; during the game, it’s about winning yourself. Investing is an extremely counter-human activity; its torment and hardship are no less than anything else. Only by winning yourself can you achieve the goal of winning other investors.

So, how to win yourself? “Greed” and “stupidity” cannot both take up space. A common scenario is, in a bull market, seeing others make 1 million, while you only make 100,000, feeling anxious and then recharging madly to buy, fearing missing out.

In a bear market, panic to the extreme, finally cutting losses at the lowest point.

For example: Fangfang bought Bitcoin between 3000-4000 yuan and never sold. When Bitcoin dropped from 1200 yuan to 900 yuan, Guo Erbao told her Bitcoin would fall to 100 yuan, so she wanted to do a short-term trade, but sold at the lowest point and never bought back.

(Guo Erbao is the guy who said during the bull market that Bitcoin would reach 1 million USD in his lifetime, or he would eat JJ live on stream.)

What I want to tell everyone is: the market is always there, the K-line never stops, opportunities are always there. You can earn countless 100% gains, but your principal is only 100%. Experts buy at 1000 with greed, don’t sell at 3000, don’t sell at 5000, sell at 8000 to escape the top, and the bear market drops back to 1000.

The middle-level investor buys at 1000 without greed, doesn’t sell at 3000, takes profits at 5000, and the bear market drops back to 1000.

The low-level investor doesn’t buy at 1000 out of greed, buys at 3000, sells at 5000, doesn’t buy at 8000, and the bear market drops back to 1000.

The greedy low-level investor doesn’t buy at 1000, doesn’t buy at 3000, buys at 5000, and out of greed, doesn’t sell at 8000; the bear market drops back to 1000. Greed is not a problem; as long as you have the ability to control greed. If both “greed” and “stupidity” take over, you are doomed to tragedy. **$GODS **$TON **$AR **