The right way to invest.

1. What is investment?

What do you think investment is? Also, what is the difference between investment and speculation? According to Naver's Korean dictionary,

 

Investment: Capitalizing or putting time or sincerity into something or business to gain profits.
Speculation: Taking advantage of opportunities to make great profits. Or that.

 

 

As can be seen from the definition, investment and speculation are difficult to distinguish in context. First of all, what we have in common can be seen as actions to benefit. In fact, investment and speculation are perceived by the public as positive (investment) and negative (speculation), but there is no fundamental difference. Apart from the distinction between investment and speculation, we would like to look at the factors that hinder our profit.

2. How investment works.
Usually, in a large framework, the investments that the general public can encounter are real estate investment and stock investment. It's the easiest and most common. Real estate is a representative safe asset, and stocks are risky assets. Therefore, the two approaches may be different, but they are fundamentally "buy it when it's cheap and sell it when it's expensive. In other words, it is a principle that occurs only when the act of transaction is established, whether it is profit or loss. If you reverse the above statement, it's a zero-sum game structure in which someone benefits and someone loses money.

3. Principle of Market.
They often say that the market is unreasonable. But if the market is reasonable, there will be no one who makes or loses money. The market itself is always unreasonable. This "unreasonable" is the structure in which the market operates and the principle of profit and loss occurs. Therefore, it is the operating principle of investment and the market principle to recognize this irrationality first and to use the gap.

4. What hinders investment?
As mentioned above, investment is a structure in which both losses and profits occur at the same time. So, what are the obstacles to investment?
We are currently living in a flood of information. This is why big data processing technology, which distinguishes, groups, and discovers patterns pouring out every day, is in the spotlight.

The obstacle to investment is...
1. The vast amount of data poured out every day.
2. Confirmation bias of investors who selectively accept information that is favorable to them.
3. A person who seeks an exit strategy by spreading opinions contrary to his or her own will.

It's simpler than you think, right? Personally, I think No. 2 is the most disturbing factor. And what you should always keep in mind is that "investment is a structure in which losses and profits occur at the same time." Investment also generates profits by taking advantage of market irrationality. It means that it is meaningless to argue that you are right on the Internet (of course, the above action can be very important for those seeking an exit strategy). Fundamentally, it is contradictory to say that this is right here and there and that is right in a structure where profits are generated only when you check and hit the market's deviation before others. In other words, such information must be grasped very critically and calmly.

5. How to overcome it.
Then, how can you survive investment or speculation, such as a weak meat diet? This method is also not difficult. It's just hard to practice. Markets change and evolve like living creatures. In the midst of all this,


1. Opinion that constantly asserts one fact even though time has passed.
2. Opinion that persuades one's opinion by disparaging or criticizing others.
3. Opinions of workers in related industries (an analyst in the stock market and a real estate-related worker in the real estate market)

Please refer to the above opinions, but you should judge them coldly and carefully check the facts. Once again, the basic principle of investment is to check the irrationality of the market before others and use the crack. Therefore, absolute profitable information or methods are never easily disclosed to the public. This is because the information or method loses its utility value as soon as it is released.

Investment simply seems similar to "letting go of money and eating money," but it takes a lot of effort to make that choice to shine. You can make a lot of profits from your investment, but please always be aware that there is a high probability of losses. In a way, wouldn't the phrase "there's nothing free in the world" explain everything?