The Road to Wealth and Freedom #01 | The road is treacherous, the first level is the main → risk!!

On the road to financial freedom, there are many gatekeepers. If you don’t know them and don’t understand their habits, you are likely to go astray and deviate from the road to financial freedom.

Risk is the first gatekeeper on the door to the road to wealth and freedom. If you don't know it, you may be beaten and lose blood. Not to mention the road to wealth and freedom, even the road to survival (little life) may not be possible. .

Grandpa Buffett said: If I knew that I would die there, I would not go there! (Nonsense, everyone knows! But sometimes the interests will blind you, let you drill into death, thinking that you have found a gold pit )

your risk

In Lecture 36 of The Road to Wealth and Freedom , the title is " Stupid! Do you think investing is made by taking risks? "

The concept of "risk taking" may be understood very differently by observers and actors

You see a surgeon open the brain, thinking that the risk is very high, and you will fail if you are not careful! But brain surgeons can only operate after years of training, and in the process of operating the operation, they also try to avoid areas that may cause damage to the brain. , that is to take the initiative to avoid risks, even when watching Japanese dramas, some doctors will announce In-Op halfway through the operation (the operation is halfway through, and the risk is too high to stop! I don’t know if the same is true in the real surgery room?)

You think the risk is very high, but in the process of execution by masters, they try to avoid risks as much as possible (similar to investment masters who study financial reports and understand the nature of the company, avoid companies with bad nature) , so the risk is actually relatively small.

Seeking wealth in danger is just a bystander’s perspective . Those who really want to seek wealth in danger will definitely find out where the danger is first, or take good control of it.

This is what Grandpa Ba said: If I knew I would die there, I would not go there!

As long as you know where the risks may lie, understand the basis and criteria for your investment decisions, control your mentality and risk level, and carry out the review carefully, even if others seem dangerous, it doesn't matter! After all, "education of others is not the primary task of investing".

Before making an investment decision, you must first think clearly, and think deeply that your conclusion is different from that of most people, and you must be "maverick and correct". You do things that will scare others. They think you're taking a risk and you know what's actually going on.

In this lecture, I also talk about a simple and simple way of learning to avoid risks.

watch fool adventures

The more you see, the richer your experience in hedging naturally😏

😶 What you can see is "danger", what you can't see is "risk"

As mentioned earlier, is it a manageable risk, or is it a risk? If you can see it, you can avoid it, so it's not a risk!

What you can see is danger, what you can't see or think about is called risk. For example, black swan~

So if you can't see it, how can you avoid it?

This is a good question! There are two ways to avoid it because you can't see it

1. Asking God to worship Buddha, and praying that you will not meet, this is a negative practice! (I think it is useless!)
2. Be prepared, in case you encounter it, you have enough anti-risk ability (you can survive for a while)

The second point is that if you can't avoid it, once you encounter it, it won't kill you in one hit!!

❓Then why don't you get killed in one hit❓

In terms of money investment, the simplest and most simple way to judge is to ask yourself a few questions before investing:

If this money goes to zero, will it affect your life?

If so, gradually reduce the proportion of the funds you want to invest ( don't be tempted by the "profit" in front of you, and seriously reduce the proportion of investment ) to the point where you think that in case the funds are all gone, or When I hear that the projects you invested in are zero, you sing, dance, watch TV, and sleep soundly!

Another question is to ask yourself:

Doing this investment, at worst, will I lose everything?

Many people (including me) have used leverage before they figured out the leverage. Fortunately, I was lucky and did not encounter any unimaginable collapse in the process, such as last year's negative oil price event, or a few years. In the former Taiwan Stock Exchange's pin-down incident, if you thought it was a low oil price at that time, and you used leverage to long oil prices, then the day of negative oil prices may be a burst of wealth, oh ~ wrong ~ It is a negative day.

Therefore, many investment experts strongly recommend that you don’t open the leverage arbitrarily . The reason is here, because you don’t know what is on the other end of the leverage. It is very likely that the one you want to move will suddenly change and kill you. You are caught off guard, making you fly away in an instant, and your assets return to zero. So, it is very important to know what game you are playing!!

If the first two questions pass, then ask another question:

Is there any other consistent and stable cash flow?

The salary of office workers is a relatively stable cash flow.

Don't think that the monthly salary of about 30,000 yuan is very meager. If the long-term stable profit rate of the stock market is 5% (after deducting inflation), then 30,000 yuan per month is equal to 360,000 yuan per year. You need to have 7.2 million yuan. With the principal, there is a chance to create the annual income of 360,000 yuan to get a monthly cash flow of 30,000 yuan.

Therefore, 30,000 monthly cash flow == 720 capital.

There is a continuous and stable cash flow, as the old saying often says: Flowing through the green hills, you are not afraid of running out of firewood . With continuous and stable cash flow, in addition to continuing life, there is also a chance to buy at the bottom (add positions at low points) 😁.

To sum up, the way to avoid being killed by one blow is to ask yourself three questions before you invest!

 1. If the money goes to zero, will it affect life?
2. Do this investment, in the worst case, will I lose everything?
3. Is there any other continuous and stable cash flow?

Before investing in cryptocurrencies, I asked these three questions, so, I think, yes . Next is action!

I recently re-read "The Road to Wealth and Freedom" again! I will share my thoughts and thoughts with you in the future. This article is written here first, hoping to provide you with different perspectives for examining risks.

If you have different opinions on risk, please leave a message to share. (If you can't leave a message, please leave a message on my other articles, <I want to drink chicken soup>, and I will invite you into the fireplace)

If you think this article has benefited you, please clap for encouragement or support .