BTC broke through $100,000, but I completely don’t understand the logic behind it. So, I don’t want to participate either. If you don’t understand it, don’t do it. Today, I sold all 750 of my POL at 0.68. There’s no specific reason; I just feel that the rebound was high enough. And I’m not optimistic about the future of the Polygon chain. Extreme Fear of Missing Out Fear of Missing Out, abbreviated as FOMO, is also referred to as Fear of Missing Opportunity. ...
Risk is a Necessity Many risks are unavoidable. What we should do is assess the risks and take them. Some risks are not worth taking, no matter how high the potential return is. Risk Assessment I. What is your ultimate goal? If achieved, what will the situation be like? II. How can you achieve the goal with little or no risk? In other words, what elements can guarantee you reach your target smoothly? III. Are the options mentioned above feasible or desirable? If not, how much risk do you need to take to get what you want? ...
People Dislike Hearing Bad News or anything that contradicts their existing views and conclusions. Therefore, if certain things might be painful, the human brain will start to act, trying to deny reality. Psychologist Daniel Kahneman, a Nobel laureate, believes: “(People often don’t even want to invest) the minimum effort to genuinely figure out what they did wrong. This isn’t accidental; it’s because they simply don’t want to know.” Everyone Avoids We all invent stories for ourselves and avoid the facts. Even if you spend a lot of time studying behavioral economics, your skills might only improve slightly. You will always make mistakes. People often ignore or refuse to acknowledge the faults of those they love, and tend to distort the facts to accommodate them. ...
Any Form of Prediction is Merely Speculation Investing is a probabilistic activity, and decisions made in a very rational manner sometimes result in poor outcomes. Even when decision-makers formulate a perfect plan and implement it smoothly, unfavorable results can still occur. However, in the long run, focusing on following the correct process, rather than any specific intermediate result, is always wise. Whenever you want to buy a stock, someone is selling… so, you are forced to frequently ask this question: “Why am I the correct side in this transaction?” ...
October 10, 2024 [My first speculative attempt](/posts/investment/stock/First conscious speculative operation/) At that time, my analysis suggested that policy makers intended to temporarily stabilize the market by boosting large-cap stocks, and to enhance market confidence by releasing relevant news. Currently, the stock price of Industrial and Commercial Bank of China (ICBC) has reached 6.14, but I don’t want to buy it because I feel ICBC is not worth that much money, so I am still planning to buy China Yangtze Power. The main logic is that the current interest rate spread is too low, which might affect dividends. Meanwhile, power demand has always been strong, and with the popularization of electric vehicles, the long-term outlook is even better.
If you want the upside building wealth, you have to accept volatility and periodic declines that come with it. It’s the price of admission for long-term investment success. If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder, and you deserve the mediocre result you’re going to get. In other words, the market only offers two to three perfect buying opportunities per century, and you absolutely should not miss them. ...
After you stop working your 9 to 5, your money can keep working for you. 停下你的朝九晚五工作后，你的钱可以继续为你工作。 Conclusion: The Just Keep Buying Rules Highlight(yellow) - Page 281 · Location 4366 Saving is for the Poor, Investing is for the Rich Find where you are in your financial journey before deciding where to focus your time and energy. If your expected savings are greater than your expected investment income, focus on savings; otherwise focus on investing. If they are similar, focus on both. (Ch. 1) ...
Most Stock Markets Go Up Most of the Time Including during World Wars and COVID-19 Most stock markets go up most of the time. While it feels like we are always at the epicenter of a market crash, the fact is that major crashes are very rare. This is why Average-In has performed poorly for most of history. The Best Time to Start Was Yesterday The next best time is today. The best time to start was yesterday. The next best time is today. ...
First, figure out how much you expect to comfortably save in the next year. Next, determine how much you expect your investments to grow in the next year. Finally, compare the two numbers. Which is higher, your expected savings or your expected investment growth? If your expected savings are higher, then you need to focus more on saving money and adding to your investments. However, if your expected investment growth is higher, then spend more time thinking about how to invest what you already have. If the numbers are close to each other, then you should spend time on both.
More than huge returns, the safety of wealth is paramount. Extreme success largely depends on luck. Investing and wealth management isn’t entirely based on luck. It might be a bit like playing cards—there’s a significant element of luck, but also a certain level of skill. Personal financial investment is largely related to psychology. Investment behavior is strongly related to a person’s past experiences, because past experiences influence one’s psychology. Chapter 1: No One Truly Loses Their Mind Over Money In the United States, the lowest-income families spend an average of $412 annually on lottery tickets, which is four times the amount spent by high-income families. 40% of Americans cannot pull out even $400 when they urgently need money. This means that those who spend $400 on lottery tickets are essentially those who cannot produce $400 when they need it most. They are betting the $400 that could provide them with security on a chance of winning that is only one in a million. ...
In fact, a healthy relationship with money is most often just a by-product of living a happy, healthy life. Endless desire is one of the pitfalls of human nature, and one of the first things you need to cure if you want to get ahead more quickly. What will you do when you no longer have to work for money? to leave this world a little better than we found it. ...
Vanguard has several massive ETFs that typically cover different market indices and asset classes. Below are some of Vanguard’s largest ETFs by fund size: 1. Vanguard Total Stock Market ETF (VTI) Fund Size: Over $1.4 trillion (1.4 trillion USD) Feature: VTI tracks the CRSP US Total Market Index, covering the entire US stock market, from large-cap to small-cap stocks, making it a very comprehensive investment tool. Expense Ratio: 0.03% 2. Vanguard S&P 500 ETF (VOO) Fund Size: Over $1 trillion (1 trillion USD) Feature: VOO tracks the S&P 500 Index, investing in 500 large US companies, and is typically considered a benchmark for the US stock market. Expense Ratio: 0.03% 3. Vanguard Total International Stock ETF (VXUS) Fund Size: Over $370 billion (370 billion USD) Feature: VXUS tracks all developed and emerging market stocks globally outside the US, suitable for investors seeking global diversification. Expense Ratio: 0.07% 4. Vanguard FTSE Emerging Markets ETF (VWO) Fund Size: Over $100 billion (100 billion USD) Feature: VWO focuses on investing in emerging market countries, such as China, Brazil, and India, suitable for investors who want to increase their exposure to emerging markets. Expense Ratio: 0.08% 5. Vanguard Total Bond Market ETF (BND) Fund Size: Over $300 billion (300 billion USD) Feature: BND tracks the entire US bond market, covering government bonds, corporate bonds, mortgage-backed securities, etc., providing investors with broad exposure to the bond market. Expense Ratio: 0.03% 6. Vanguard Growth ETF (VUG) Fund Size: Over $150 billion (150 billion USD) Feature: VUG invests in large-cap growth stocks in the US, suitable for investors seeking high-growth companies (such as tech stocks). Expense Ratio: 0.04%
My First Speculative Attempt Trading Summary This afternoon, I executed a trade in my A-share account, selling 50% of my shares in Industrial and Commercial Bank of China (ICBC). Trading Rationale Today, small-cap stocks experienced an overall decline, while major large-cap stocks rose by 4% to 5%. Concurrently, the Ministry of Finance announced that a press conference will be held on Saturday. My analysis suggests that policymakers intend to temporarily stabilize the market by boosting large-cap stocks and enhancing market confidence by releasing relevant news. I anticipate that concrete policies will be announced at the Saturday press conference to drive a market recovery. Given that the policymakers’ objectives have not yet been met, I believe they will not abandon their intervention in the market. ...
What Happened Today? According to reports from the Securities Times, on October 9th, the two A-share markets showed a weak downward trend, accelerating into a sharp plunge at the close. The Shanghai Composite Index fell nearly 7%, losing the 3300-point threshold, while the ChiNext Index dropped by over 10%. The total trading volume for both markets exceeded 2.9 trillion RMB, and more than 5,000 individual stocks declined. Reasons for the Surge Regarding the previous market surge, I have already provided an analysis in an earlier article. Interested readers can view the article 《On the Historic Surge Day of A-Shares: False Prosperity or Steady Ascent?》 for further details. ...
Fees (or Costs): High-cost investments erode long-term returns. For example, frequent buying and selling generates transaction fees, as well as potential stamp duties, all of which reduce the final investment yield. Therefore, controlling unnecessary trading frequency and choosing low-cost investment tools (such as index funds) is crucial for improving long-term investment returns. Emotion (or Sentiment): Investors’ emotions are often influenced by market fluctuations. For instance, they tend to be overly optimistic when the market is booming, and overly pessimistic when the market is sluggish. These emotional decisions often lead investors to buy or sell stocks at the wrong time. For example, selling during a market panic may result in losses, while chasing gains when the market is overheated may expose them to the risk of a pullback. Therefore, remaining calm and adhering to a long-term investment plan and value investing principles is extremely important. ...
Foreword by Phil Town Warren Buffett says investing is buying an asset that produces cash flow for substantially less than it’s worth, like buying a $ 10 bill for $ 5. She finally did the math and discovered that unless she was willing to be a wage slave for her whole life, accumulating enough money to have choices was nearly impossible without investing. Introduction, or How to Use This Book a market crash is a natural part of the economic cycle that is going to happen whether I want it to or not. Chapter 1: January—Becoming Brave Rule #1 is Don’t Lose Money. Rule #2? Don’t Forget Rule #1. ...
Beginnings “If you reach for a star, you might not get one. But you won’t come up with a hand full of mud either.” Spend less than you earn—invest the surplus—avoid debt. Carrying debt is as appealing as being covered with leeches and has much the same effect. ...
Habits are the compound interest of self-improvement. Just as money multiplies through compound interest, the effects of your habits multiply as you repeat them. They may seem to make little difference on any given day, yet the impact they deliver over the months and years can be enormous. 1: The Surprising Power of Atomic Habits People make a few small changes, fail to see a tangible result, and decide to stop. You think, “I’ve been running every day for a month, so why can’t I see any change in my body?” Once this kind of thinking takes over, it’s easy to let good habits fall by the wayside. But in order to make a meaningful difference, habits need to persist long enough to break through this plateau—what I call the Plateau of Latent Potential. qPeople make a few small changes, fail to see a tangible result, and decide to stop. You think, “I’ve been running every day for a month, so why can’t I see any change in my body?” Once this kind of thinking takes over, it’s easy to let good habits fall by the wayside. But in order to make a meaningful difference, habits need to persist long enough to break through this plateau—what I call the Plateau of Latent Potential. ...
The largest financial institutions are set up to make a profit for themselves, not their clients. What do I really want? (Vision.) 2. What is important about it? (Values.) 3. How will I get it? (Methods.) 4. What is preventing me from having it? (Obstacles.) 5. How will I know I am successful? (Measurements.) Money is certainly one of the ways we can turn the dreams we have into the reality we live. ...
Vanguard Total Stock Market ETF (VTI): Expense Ratio: Approximately 0.03% iShares Core S&P 500 ETF (IVV): Expense Ratio: Approximately 0.03% Schwab U.S. Broad Market ETF (SCHB): Expense Ratio: Approximately 0.03% SPDR S&P 500 ETF Trust (SPY): Expense Ratio: Approximately 0.09% Invesco QQQ Trust (QQQ): Expense Ratio: Approximately 0.20% iShares Russell 2000 ETF (IWM): Expense Ratio: Approximately 0.19% Vanguard Total Bond Market ETF (BND): Expense Ratio: Approximately 0.04% iShares Core U.S. Aggregate Bond ETF (AGG): Expense Ratio: Approximately 0.04%