When many investors invest in stocks or funds, the most common mistake they make is to confuse the words "make big bets with small ones" with "make big bets with small ones". We can simply put it this way: call investment with big fights and small ones; Fight big with small, this is called speculation. The mentality and methods of investment and speculation are completely different. Psychologically speaking, it is a speculative mentality to accumulate huge wealth quickly with a small sum of money. There is nothing wrong with guessing. Personally, I don't want to criticize the appropriateness of speculation from a moral perspective. I just want to say that the essence of speculation is gambling on luck, and the rate of return of luck can be calculated through rationality. The rules of the game of speculation are: the smaller the money, the faster the speed, but the bigger the money, the better, which is more in line with the rational expectation of speculation. Because we are also betting on luck, we can make a one-time small bet that 50 yuan can win 500 million yuan and win 1 billion yuan at a time. Of course, the former is more cost-effective than the latter, which naturally attracts more speculators to participate. Similarly, under the condition of constant time, if speculators want to bet with 1 10,000 yuan, they have a chance to win 500 million yuan. Another way is to win 500 million yuan with the participation of 50 yuan. The former is because the opportunity cost (price) of speculation is too expensive, and natural participants are not as enthusiastic as the latter. In addition, if speculators have to wait for a year and a half to get a lucky chance of 500 million yuan, then most people have no patience to wait for a lucky chance to win the lottery, regardless of whether they spend 1 10,000 yuan or 50 yuan. So to put it simply: (1) The lower the cost of betting, (2) the shorter the waiting time, and (3) the higher the return of profit, then a speculative behavior will be more cost-effective in rational thinking. If you have friends who often like to go in and out of the stock market for a short time, you will find that the rules of the above speculative game are in line with the operation methods of most stock investors. With limited funds (1), you can get (2) the most stock price increase in just one or two months (3). If the stock market can pull the daily limit and earn 2 1% in just three days, and the stock price is not too high, according to the law of speculation, it will naturally attract many speculators to enter the market and create a hot and prosperous market. However, speculators should not forget that there is one of the most important necessary clauses in the rules of the game of speculation, that is, (4) the probability of winning money is very low. Speculators are just taking a small gamble. No matter how to calculate the rate of return rationally, this rate of return is still based on a low probability. And the higher the rate of return, the lower the probability of occurrence. Therefore, if you want to earn 500 million yuan or 1 100 million yuan on a lottery ticket in 50 yuan, the occurrence rate is so low that the probability of being struck by lightning in rainy days. If the stock market or fund investors participate in the market with small bets, don't ignore that the chances of making money will be very low. However, if investors want to enter the market with the correct "investment" mentality, then don't forget that investment is based on big bets, and the rules of the game are just the opposite of speculation. In other words, smart investment must be: spend (1) a reasonable price, spend (2) a reasonable time, and earn (3) a reasonable rate of return, and its success rate must be based on (4). If investors want to get a return in a certain way, that is, make the profit rate as high as 90% or more and enter the investment realm of winning every battle, please remember that reasonable cost, reasonable time and reasonable rate of return are the basic items for successful investment to make money. When investing, if you choose the wrong speculative conditions and expect the expected return that does not conform to the principle of investment probability, it will inevitably lead to disappointing investment results again and again.