The rich get richer, the poor get poorer! Recently, I saw an article in Star Newspaper, 1% of wealthiest people are richer than the total wealth of others in the world! This may sound hard to believe, but it’s actually true! While the overall numbers of those that live on the upper percentile in the entire world are so small, the overall wealth they’ve amassed is just unbelievably high. These people definitely have enough cash to last them through hundreds of lifetimes, wherein even a small percentage of it is even bigger than what others may have in their entire lifetime.

How have they made this possible? This article gives you a breakdown of their secrets.

I believe it's because the ignorant followers are always be leaded by the knowledgeable leaders. Let me expound.

On the 22th of December, 2015 I told one of my friends, Mr. nihC that the economy of world would be crashed after Christmas and he laughed at me said I'm crazy and the economy now was so good（傻的！现在经济这么好，怎么会大跌？！)

I never thought about it well, as it was out of my expectation that The Dow Jones started to fall down after New Year and not Christmas! I believe that those people who have stocks locked in a high price had optimistic expectations that their stocks will rebound back. That's why, the optimists will lose more money than the others eventually in the market!

This scenario is what it means by ignorant followers. The richest of the rich don’t have this kind of mindset. Rather, they’re quite pessimistic. Their mindset is always having a fear of possible failure that whatever wealth they’ve amassed right now will eventually run out. In the situation above, they don’t believe that their stocks will rebound. They prepare for the worst failure, so they can avoid a drop in their value. This process includes consistently learning and reading about stocks.

When the market is good, bankers earn money through interests. When the market is bad, the bankers will earn the properties I pledge. In the latter scenario, more and more people will lose jobs and not be able to pay the loans, especially the housing loans! This is why the top one factor people declare bankruptcy is always because of housing loans.

When I talked to most of my friends, surprisingly, most of them have investments based on fundamental analysis. I asked them why they want to invest and they tried to persuade me that putting money in FD is too little for them to cover for the inflation! I told them the inflation is not possibly more than 10%, but most of people lose more than 10% in investment.

Well, I believe that investment can’t be just relied on fundamental, because we’re normal people (consider the poorer group). Belonging to this lower class of people, the greater fear is always losing money. We are not able to put the orders faster than big hands, we have less capital to compete with them as well, that's why we have to be smarter than them. For me, it's important to look at the world market(世界行势）, and then country market(国家行势），particular sectors(行业行势）， and then fundamental analysis and lastly technical analysis. 

However, a good food for thought is that all kinds of investment instruments are mostly based on predictions. If I predict right, I win money! So, if I have no confidence in my prediction, I shouldn't put money in that investment instrument.

While these predictions may not always be correct, there are so many ways for you to safeguard all your investments, just as the richest group of people have. The point here isn’t for anyone to shy away from investments like your pursuit, for instance, in buying gold bars, or make good use of your hard-earned money simply because you're afraid. What's more important is how you ensure that once you’ve invested your money, you keep it safe.

In closing, it also pays to live by the following practices of some of the world’s richest individuals:

• Take action, so that you can succeed. That is a powerful message and one that you should be willing to listen to. After all, if you believe that you can be successful, then you should be able to make an investment in your own success and have the motivation to keep on doing what you’re doing.
• Put yourself out there and pursue your goals, though that doesn’t mean you should chase after as many dreams as you can.

A winner in stock market is like a boat in the sea of losers. ~From one of my favourite books

* This article is not written to public, but it's an investment diary to remind myself not to feel optimistic without looking at facts and trends as well as think twice to use the loans like margin loans and housing loans.