1, the speculative market cannot be sacred, and everyone makes mistakes. Long-term capital management company has world-class bond operation experts meriwether and Rosenfeld, world-class scientific research talents Merton and Schultz, and world-class public relations financing talent Morris. But everyone on this dream team should be responsible for the collapse of LTCM. Therefore, our shareholders should not be superstitious about anyone, but should have the ability to think independently.
2. There is no magic weapon to win in speculative market, and any analysis method and operating system have defects and misunderstandings. LTCM once thought that it had mastered the secret of getting rich, and it was successful again and again in the international financial market with full confidence. However, a small probability event that they ignored happened, which caused huge losses and was on the verge of bankruptcy. Therefore, when we investors use any methods or tools to operate in the securities market, we must realize that they sometimes make mistakes and let you miss some opportunities. If their mistakes are only small probability events, and their correctness is high probability events (such as more than 60%), and they are more suitable for your personality, you should stick to using them, but also pay attention to the following tips.
3. To survive and develop in the speculative market, controlling risks is an eternal theme. It is precisely because anyone can make mistakes in any way in the securities market that controlling risks is an iron law that our shareholders should remember for life. It doesn't matter if the method or tool you rely on only makes you miss some opportunities to make money when you make mistakes. If they make mistakes, they may make you hurt your bones, be wiped out and even be heavily in debt. Such risks must be strictly controlled. In order to avoid these tragic endings from happening to our shareholders, first of all, don't overdraw stocks, second, don't borrow money to stocks, third, pay attention to stop losses in high-level stocks, and finally, don't speculate blindly and frequently.