Simple and effective tips are always welcome. Even more when we are looking for investment information. In this analysis of the book "The Zurich Axioms", written by Max Gunther, you will learn the twelve rules, "axioms", which were used by Swiss investors in the most diverse areas.
According to the author, these rules are a summary of how the Swiss, even without oil, without coal, without agriculture and with an inhospitable climate and topography, reached one of the highest per capita incomes in the world.
Well, how did they do that? They have become the smartest gamblers of all time.
Want to know more? Then read on for this PocketBook and discover the secrets of the world of investment and speculation!
"The Zurich Axioms", written by Max Gunther and originally released in 1985, shows how invest your money, using rules to increase profit and reduce risks.
This book, one of the great sales successes of Max Gunther, has in its new version (2017) a total of 208 pages. It is divided into twelve chapters which are the twelve axioms proper, which makes the reading quite objective.
Max Gunther, an Anglo-American born in England in 1926, was a writer and journalist and has accumulated more than 20 published books. Among his works of success it is the best-seller "The Very, Very Rich and How They Got That Way".
Max moved to the United States when his father, an employee of a Swiss bank, was transferred to New York to work as the bank's branch manager. Max's father was part of an investment club made up of Swiss people and it was from this group that the 'Zurich Axioms' came.
Perhaps you have the impression that this book can be used by everyone. But it is not quite this way. Max makes it clear that:
"[...] everyone wants to win, but not everyone wants to bet, and that's where a difference of the greatest importance lies. A lot of people, most likely, want to win without betting".
This play is about betting to win.
The main ideas are deepened in each axiom. In his work, Max Gunther exemplifies each axiom with real stories, showing how each of them works in practice.
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About the axiom of risk, Gunther says that:
"Worry is not a disease, but a sign of health. If you're not worried, you're not risking enough".
His father had a rule that half of his income should be spent on investment and speculation. If your desire is to avoid worry, know: you will remain poor. Life must be dynamic, for that is what makes life worthwhile - take the risk.
The axiom of greed talks about never delaying "falling out" because we all know that it is not easy to stop when you are winning.
According to Max Gunther, if you master greed will be better than most investors. Remember: if the majority lost and you won, you are a winner. Never be dominated by greed.
The axiom of hope: unlike the previous one, this is for when things go wrong. A speculator can not be a supporter, he must be based only on reason.
The author says "when the ship begins to sink, do not pray, jump!", because the fear of admitting error can not disturb you. So do not hold on to the money invested, do not wait for the boat to sink, jump out!
The prediction axiom. Have you ever wanted to read the future? Probably. What if you could? Would you be a rich man? Absolutely, right? If a man comes along prophesying what would happen on the stock exchange tomorrow, would you stop to listen to him? Most people do.
This axiom is simple: in the world of money, no one has the faintest idea of?? what will happen in the future. Nobody. All predictions have their possibilities, but the chance of them being wrong is greater.
The Standards Axiom. There is no doubt that the world of money is chaos, without order and totally without pattern. Do not waste your time trying to find patterns in the stock market.
According to Max Gunther:
"It is possible that this axiom is the most important. It's the Imperial Axiom. Having absorbed it, it will be sufficient to separate it from the herd, to remove it from the common grave of the lost, the losers full of vain hopes".
This axiom is about mobility. The more you look for the feeling of being comfortable, being familiar and surrounded by the old, the less your success.
Never hesitate to leave a venture that went wrong, do not cling to feelings of loyalty and nostalgia. That's the message here.
The axiom of intuition. According to the book "The Zurich Axioms", we should only consider a viable guess if it has an explanation. When you have a hunch, try to explain it to yourself.
Do you master that subject? Do you have the necessary knowledge to do this? Have you followed this topic closely? If not, that guess is not based on facts, forget it. It's just fantasy.
This axiom is about religion and the occult. According to Max Gunther:
"Leaning on the supernatural has the same effect as relying on predictions or illusions of order. It has the ability to lure you into a dangerously unconcerned state. Whatever their beliefs, God and other supernatural forces must have no role to play in your behavior as an investment".
Optimism and pessimism, this is the axiom of number nine. We can not be bullish on the stock market. Instead, we should have confidence. It arises from the correct use of pessimism. There is no miracle, so accept reality and deal with it - avoiding it will only prevent you from reaching your goal s.
The axiom of the majority: Rene Descartes has already said:
"There is practically nothing that has been affirmed by one sage and has not been contradicted by another. Counting votes is no good. In any difficult question, the truth is more likely to be discovered by the few than by many".
Disregard the opinion of the majority, think about the possibility for yourself and only then have your opinion. Do not choose a side just because the majority chose it.
The axiom of stubbornness. If it started wrong, it can not end well. Do not try to recoup the investment by insisting on the mistake. Do not be stubborn, because this attitude will only take time and money. Forget feelings like ego and revenge. Remember, be rational.
Here we are in the last axiom. Do you have all in the head already? One indication is to remind them every month. Let's go to the last one: the planning axiom.
You must have heard, somewhere, that it's good for us to make long-range plans. When we do this, we have the feeling of having life under control, that is, we take away the need to take risks.
Rather than do this, pay attention to the events unfolding in the present, and when an opportunity arises, follow it. When a risk comes up, get out of it.
According to the author:
"There is only one long-term financial plan that you need: the plan to get rich. All you have to know is you'll get it one way or the other."
For Robert Kiyosaki, author of the bestselling "Rich Dad, Poor Dad", the journey to enrichment must begin as early as possible, and it consists of assessing your finances, creating personal goals and searching for the knowledge necessary to achieve your goals. goals.
Paulo Vieira, author of the book "Enrichment Factor", says that the enrichment journey is made up of peaks and valleys, so be prepared and willing not to stop halfway.
Remember that not giving up is what will make you a millionaire. Make sure you have a successful mindset, be able to see adversity and move on, doing what has to be done.
Finally, for the author of "Think and Grow Rich", Napoleon Hill, the first step to becoming rich is to have a strong desire to be rich. It may seem simple, right? But this desire has to be a real "blood in the eyes" and have a good dose of persistence.
Axioms are teachings of Swiss investors that have applicability in various areas such as trade, real estate deals and stocks.
Remembering that no critical review completely replaces the book, so if you liked the ideas presented here, I recommend that you read the book.
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