Leverage pot, Bitcoin does not back: Dalian man increased leverage to fry coins and lost 20 million, killed his daughter and jumped into the sea with his wife

I was very saddened to hear the news last night.

According to Wu Shuo’s blockchain microblog, he found the court trial record on the China Court Trial Open Network of the Supreme People’s Court of the People’s Republic of China. In the court trial record, the man Zheng Dawei claimed to have been investing in bitcoin and other digital currencies. More than 500,000 came from his wife; three to four million came from his parents; the rest came from his savings and relatives' loans from "speculating digital currency". After losing more than 20 million yuan, Zheng Dawei originally planned to "go by himself", but later decided to go with his wife and daughter. Therefore, on June 18, he killed his daughter first, and then jumped into the sea with his wife to commit suicide. Zheng Dawei survived after landing on the base of the bridge pier, and surrendered himself after being taken away by the maritime police.

Another suicide by frying coins. I am very saddened and sorry to see this incident. But the heart has long been familiar with the strange. Because over the years, this kind of thing has happened too much, and I have seen too much.

Because I have been in this circle all the year round, I have seen friends and colleagues around me lose tens of millions of dollars because of stock speculation 10 years ago, and lost a few houses in Shenzhen, and finally went bankrupt and divorced, and their wives and children were separated.

There are even more speculations.

This kind of thing has been seen a lot, and many people think that the currency circle is deceptive and untouchable.

In fact, it's because he's crazy to leverage himself. The 3-4 million savings from my parents, the 500,000 from my parents-in-law, and the money borrowed from all relatives were all invested. After the loss is over, he can't think of suicide, because he knows what the responsibility behind the money he lost means. These are not his own money, but the hard-earned money of the old man, and they are all loans. If he loses all his savings, It shouldn't be dead.

The pot of leverage, Bitcoin really does not bear it. If he is not playing bitcoin but stocks, the end result is the same. Any financial investment, plus leverage, is tantamount to playing with fire and setting himself on fire.

Because leverage will amplify human greed infinitely.

Archimedes once said, give me a fulcrum, and I can lift the whole earth.

This is the power of leverage. In the financial world, leverage often loses all your wealth.

What is an investment? In my opinion, investment should be based on being familiar with the product, the market and the rules, especially on the premise of ensuring that you can bear the risk of loss, and then through different products, put multiple eggs in multiple baskets, comprehensive configuration, Diversified investment, both high-yield, high-risk and stable income, in order to achieve the purpose of wealth appreciation.

All leveraged behaviors are not investments at all, but gambling. Gambling becomes a zero-sum game, either you die or I die.

Also, taking shortcuts is addictive.

After people taste the sweetness, they will start to swell if they don't control it well, thinking that they can predict the market.

Just like the male protagonist in this incident, he desperately increased the leverage because he firmly believed that he had earned 10 million before and would definitely earn it back. But the market just didn't follow his forecast. This is a fact that he can't control, because he didn't earn the ten million by starting a company, doing projects, or relying on invention patents and other real deals. Of the 10 million earned from gambling, luck accounted for most of it.

But at that time, people were already red-eyed, and they would never look back.

Marx said that capitalism has a 20% profit, and capital will be ready to move. If there is a 50% profit, capital will take risks; if there is a 100% profit, capital will dare to hang its head. If there is a 300% profit, capital dares to trample on all laws in the world.

We all know the existence of risks, but incidents like this in the circle have not decreased. The reason why one after another is due to human greed and lack of awareness of investment risks.

I have read other people's stories, although these have not happened to me. However, I have to say that you will encounter these pitfalls in investment sooner or later, it is only a matter of size. Often after losing money, I think deeply and regret the original decision.

So want to babble again today on some correct but useful nonsense:

First, investment must have risks. In order to avoid investment losses, you must carefully select platforms before investing, and select several platforms that are safe and have good returns to invest in separately, and do not put "eggs in one basket".

Second, before making an investment, you must understand what the worst possible consequences of this investment will be, and whether you can accept it. You need to consider your risk tolerance comprehensively.

In a bull market, people's desires are often magnified to the extreme, and people are more afraid of missing the market than bearing the loss of falling. This is why many people borrow money to invest.

And often every time there is a decline, you will not have the heart to sell it at the beginning of the decline, because you are afraid of missing out. You will regret the real decline, you regret not selling earlier, and you will not sell at this time, because obviously your income has decreased, and this period of decline is often the most violent in a period of decline. So violent that you can't react, it's over

Third, asset allocation. I recommend everyone to read the book "Black Swan". Even if you study an asset in depth, you cannot 100% guarantee that it will definitely bring you benefits. Therefore, in order to prevent that small probability event from happening, you need scientific asset allocation.

Finally, learn it and play it. Follow the right people and learn useful knowledge is the most important thing. The current news can be described as pervasive. Attacking you 24 hours a day, many people have learned a lot of invalid or ineffective knowledge, but ineffective and ineffective knowledge will make people lose money, and more importantly, if they can’t learn effective This money-losing situation will continue forever. It's scary to think about going all the way to the dark.

Therefore, in investing, learning is also very important, invest until you are old, and learn when you are old! Eternal truth!

If you are experiencing this feeling of being at a loss, if you don’t know how to adjust your position at what stage, whether to persist or stop loss, welcome to scan the QR code below to tease me, make friends, be a tree hole, and answer everything.