As we all know, investment profits come from our participation in the process of creating social wealth.

There are several important concepts of value investment - the market, the margin of safety, and the circle of ability. However, one of the most basic concepts of the value investment system is that stocks are part of the company's ownership. So buying stocks can share the value that brings by the growth and expansion of companies.

Another way to understand stocks is to use them as a trading voucher, which mainly earns money of "buy low and sell high".

In fact, the investment concept of treating stocks as chips is common. There will always be a large amount of capital in the market. They do not care about the long-term value of the company behind the stock, but pay attention to the news, hot spots, themes, capital flow and other indicators to prejudge.

There is a funny story. Daniel Drew was originally a young man from a poor family. After he made his first bucket of money by selling livestock, he began to look for greater opportunities to make money. He discovered that Wall Street was a good place to get rich quickly.

Drew is very good at spreading rumors and inciting the market atmosphere. For example, he bribed the media and newspapers to advocate that a stock was about to rise or fall rapidly.

His success was very dramatic. One day, when he walked into one of the most famous clubs in New York, he seemed very anxious and seemed to be looking for someone. However, the stockbrokers who were present found that a piece of paper fell out of his pocket. When they opened it, it said, "No matter what price is, you must buy Oshkosh stocks as many as possible."

At that time, the railway company named Oshkosh was already very expensive, and it had been seriously overestimated. However, when they saw this note, they thought that Drew himself must know some inside information that they did not know. Therefore, these brokers not only bought tens of thousands of stocks, but also informed their customers to buy, pushing the stock price to a new high level.

It turned out that Daniel Drew sold them the stock. In fact, Drew is also trapped at a high position. He manipulated the market and found more stupid people to buy. In the end, Oshkosh's stock price collapsed, while Drew made twice money.

Trend investment is just contrary to the concept of value investment: as long as the value remains unchanged, the more the stock falls, the more you buy. And the more the stock rises, the more you should be careful; The core idea of trend investment is that the market continues the previous price trend, so you follow the trend.

In addition to "trend investment", there are many investment methods that do not care about the fundamentals of companies behind stocks. For example, the quantitative investment has emerged in recent years.

There is a famous representative in the field of quantitative investment named Jim Simons. He is also the founder of Renaissance Science and Technology Fund, which is the world's top quantitative fund.

Most of its employees are mathematicians, physicists, biologists, statisticians, etc. They use various mathematical models to predict the market and complete automatic transactions.

What’s more, the Renaissance Science and Technology Fund made very brilliant achievements.Simons is worth more than 10 billion dollars and he is definitely one of the most successful investors in the world.

There are lots of investment methods and investment ideas in the world. They are very effective, and we can make money when we use them well.

（Writer：Seli）