Why are most of the speculators destined to lose money?

Why are most of the speculators destined to lose money?

Bitcoin has risen in this round. I thought that many people have seized it. Later, I did an investigation. The result is embarrassing. Less than 20% of the people are profitable, and the other 80% are either losing money or taking the time. Moreover, I am investigating the old amaranth in the currency circle. In my opinion, they have experienced at least one round of bulls and bears. It should not be such a result. The mind suddenly remembered the poisoned chicken soup of the junior high school history teacher. "The truth is often in the hands of a few people." Contrary to the political teacher's "the eyes of the masses are sharp."

Obviously in the currency circle, most people's eyes are embarrassing, as is the mature stock market. The stocks are power-law distribution. Generally speaking, eight loses, one loses, one loses, 80% loses money, and 20% loses. 10% of them earned. This is the so-called twenty-eight law.

The 28th law and the currency circle

The 28th law is also known as the 80/20 law, the Pareto rule, also known as the Bale law, the key minority rule, the imbalance principle. It was discovered by the Italian economist Pareto in the late 19th and early 20th centuries. He believes that in any group of things, the most important part is only a small part, about 20%, and the remaining 80%, although the majority, is secondary, so it is also called the 28th law.

For example, 80% of peas come from 20% of pea pods; 80% of Italy's land is owned by 20% of the population; in the air, nitrogen accounts for 78%, oxygen and other gases account for 22%; infants account for 80% of body weight after birth. Around, the other accounts for about 20%.

The 28th law applies to almost all fields, and it is reflected in the capital market such as the currency circle.

80% of investors lose money and 20% make money.

80% of investors' yields don't win Bitcoin, and only 20% of investors can barely run Bitcoin.

80% of people know nothing about tokens, and 20% have mastered the rules of the currency.

80% of the currency will fluctuate with the bitcoin market, and 20% of the currency will become a dark horse, taking the independent market.

80% of investment income comes from 20% of the transaction, and the remaining 80% of the transaction can only bring 20% ​​of the profit.

In 80% of the time, the price of the currency fell in shocks and rose in 20% of the time.

When you find that the capital market is destined to be the minority who earns most of the money, is it strange that this is the case? Can't we be rich together and join the club?

Why are most people destined to lose money?

We use the counter-evidence method. If most people in the currency circle make money and a few lose money, what would it be?

The market is the trading place, the market itself does not generate profits. In the process of buying and selling, Bitcoin does not generate profits. If you hold bitcoin, Bitcoin still has no profit.

The so-called speculation of making money is nothing more than a part of the trader earning funds from another part of the trader, which is a process of transferring funds. To put it bluntly, you can make money, that is, someone else picks up your plate at a high position, and if you earn, you will have to lose.

Suppose there are ten participants in the currency circle, each with 10 dollars. If a few people make money, one of them earns 2 from the other nine. There are 28 on this person and 8 on the other 9. The game can continue. If most people make money, nine of them earn 2 yuan from one person, and nine people have 11 yuan. One person is not only lost, but also owes eight, and the game can't play.

A few people make money and the market is sustainable; when most people make money, the market collapses.

With the lottery, most people can win, and the lottery company can't continue. Only when most people fail, and a few win the prize, the lottery company can continue to operate.

Therefore, the currency market will use all methods to make a few people make money, and most people lose money.

How to become a minority of people who make money?

1. 80% of investors lose money and 20% make money. In this case, if you have a high probability of losing money, and you do not have the professional qualities of investment, then you are the pig of the currency circle, do not slaughter you, the investment is risky, give up safer.

2, 80% of investors' yields do not win Bitcoin, only 20% of investors can barely run Bitcoin. You are destined to run the Bitcoin with a high probability. If you don't have strong eyesight, don't chase hot money, and honestly keep Bitcoin. Finally, you will find that you have won most of the people around you.

3, 80% of people know nothing about tokens, and 20% have mastered the rules of the currency circle. Most people only know the alphabetic symbols of the coins, and they don’t know how to block the blockchain technology. If they don’t understand, they want to fish in troubled waters. Really want to make money, first enrich the brain to enhance cognition, which will directly affect your investment performance.

4. 80% of short-term investors and 20% of value investors. In addition to short-term masters, the frequent trading of most people is the best way to go bankrupt. If you don't understand, don't worry about it. Don't always think about speculation. You are not the piece of material. Take the value of your own hand, wait for the bull market to come, and give the pot to others at a high position.
to sum up

The 28th law is a universal law of nature and society. Putting it in the currency circle is the money that a few people are destined to earn most people. This is the iron law. It confirms the "Matthew effect" and reveals a cold reality: unfairness is the objective law of human social development. Of course, we can also use the 28th law to guide the speculation.

The 28th law is a fate that an individual cannot escape. We cannot change the law, but we can choose: Is it 80% mediocrity or 20% success? (block wave)

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

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