I have accumulated quite a few reflections over the years about markets and investing. Many of them come from key observers of the financial system, and honestly, some quotes that are everywhere really deserve to be paused on.

The first thing I understood is that people make mistakes not because they don't understand, but because they think they know everything. It's a brutal truth, but that's it. And then there's this mentality: I was born poor, but I will never die poor. It's this determination that changes the game.

In markets, everything goes up and down. Always. The important thing is to recognize when it changes direction. True talent is finding the turning point. But beware, taking risks is good, except when you risk your entire fortune at once. That's pure madness.

This is what struck me when reading quotes from a major writer and thinker: the global economic history is just a series based on illusions and lies. True wealth comes from those who recognize the illusion, get involved in it, then withdraw before everyone else discovers the trick. It's raw, but it's true.

If you're not ready to face pain, you must leave. End of story. A truly excellent investor doesn't rely on always winning in the market. What matters is having the courage to get up after each failure and become stronger. And admitting a mistake? That's something to be proud of. I can admit my mistakes and forgive others theirs.

I realized I had to act, even if it meant losing the battle. I was ready. Rational behavior only exists in theory; unexpected results can appear at any moment. No perfect understanding. But pursuing more perfect knowledge is beneficial and aligns with the natural desire to understand.

Prices depend on fundamental trends and dominant biases, which are themselves affected by prices. People often do not follow the evolution of things. The causal chain does not lead directly from facts to facts, but from facts to cognition, then from cognition to facts. It's a loop.

To succeed, you need to have enough free time. Reflexivity doesn't always exist, but when it does, price trends follow different patterns. They not only reflect fundamentals but become one of the fundamentals themselves and shape the evolution of prices. This recursive relationship makes evolution uncertain, nothing like equilibrium prices.

Market prices always distort the fundamentals underlying them. It's not that current expectations match future events, but that future events are shaped by present expectations. When total liabilities accumulate, the weight of credit increases and begins to have an appreciation effect on guarantees. This process continues until credit growth no longer stimulates the economy. At this point, the value of loans becomes too dependent on new loans. As new loans don't accelerate, guarantees start to decline. Erosion reinforces erosion. A slight decline can trigger repayment demands, worsening the recession.

This entire world is a scam. You must get involved as early as possible and leave before everyone else discovers the scam. If your situation isn't good, the first step is to reduce your investment, not withdraw funds. When reinvesting, start with a smaller amount.

Not knowing what will happen isn't scary. What's scary is not knowing how to face it if it occurs. Investing isn't about following trends. If you follow others, you're doomed to failure. The important thing isn't whether your judgment is right or wrong; it's to maximize your power when you're right.