Xiaobai and Warren Buffett s friends are on a journey of wisdom with empty positions

Mondo Finance Updated on 2024-01-31

Xiaobai, a young man who doesn't know anything about **, accidentally met the friend of the legendary stock god Warren Buffett - a mysterious old stockholder. The old shareholder promised to take Xiaobai to understand the real wisdom, but the condition was that Xiaobai must study carefully and not give up halfway.

The story unfolds: The old shareholder led Xiaobai to visit Warren Buffett's office, and there was a painting on the wall: "Empty positions are the way of kings." The veteran investor explained: "This is Buffett's trading secret for many years. Empty positions are not about idleness, but about introspection and waiting. The real god of stocks is not to trade frequently, but to know when to enter and when to exit. ”

In order to further illustrate, the old shareholder told Xiaobai a story. The reason why Buffett was able to seize Coca-Cola's big ** back then was precisely because he had an empty position for half a year and waited patiently for the opportunity. And when the opportunity came, he entered decisively and held it for many years, and finally reaped a good return.

The climax of the story: Xiaobai decides to practice the wisdom of empty positions. He began to learn various trading techniques and read classic books. However, after several small losses, he began to waver. Just when he was hesitant to "retaliate", the old shareholder told him: "The short position is to better see the market and not be trapped by profit and loss." Only with a clear mind can you make informed decisions. ”

End of story: Xiaobai finally understands the wisdom of empty positions. When a big opportunity came, his funds were not tied up due to his previous short position, so he entered the market decisively and obtained unexpected gains. He said gratefully to the old stockholders: "It turns out that the short position is not an escape, but to better meet the opportunity." ”

Top Authors Brief Story: This story illustrates the true meaning of trading in a humorous way - short positions are not about doing nothing, but about taking advantage of opportunities. In trading, we should not be trapped by profits and losses, but should keep a clear head. Only by understanding the wisdom of empty positions can we be comfortable and successful in the first place.

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