Sharing Good Books: Learn FQ with Chai and Mouse, Be Your Own ATM

Learn FQ with Chai and Mouse, Be Your Own ATM: Lay a Solid Foundation for Investment and Financial Management, Allowing You to Increase Passive Income Without Labor, and Quickly FIRE

Author: Chai and Mouse Brothers
Illustrator: Chai and Mouse Brothers
Publisher: Caishi Culture
Publication Date: 2020/03/26

Book Recommendation Website:

• Books.com.tw: Purchase Link

Preface:

This is the fourteenth book I've read this year. I knew about this book because I have been following the "Chai and Mouse Brothers ZRBros" channel for a long time. To be honest, I bought this book simply to support "Chai and Mouse Brothers ZRBros". But I found that the content of the book is well-organized, and the writing style is also very approachable and interesting. I highly recommend everyone to take a look. If you are new to the stock market, you must watch their channel to learn basic knowledge.

Content Summary and Thoughts:

What is FQ (Financial Quotient)?
FQ is "Financial Intelligence, Financial Knowledge," which is a person's ability to manage money.

In the past, everyone thought that FQ was a required course for financial professionals.
When it comes to "investment and financial management," many people don't think it's their business.
But in fact, FQ is a required course for everyone's life.

Especially in this era of being tired, bored, busy, and low-paying,
Learning FQ with Chai and Mouse can not only relieve your financial anxiety,
but also allow you to manage money and have the ability to build a passive income machine,
From then on, you can increase your salary without side jobs!

The Chai and Mouse Brothers, with their interest in investment and financial management and self-study, combined years of investment experience with media practice experience,
filmed the popular FQ videos, simplifying complex and difficult investment and financial management, which is loved by investment novices──

Chapter Outline

Part 1: The Wealth-Generating View That Makes Investment and Financial Management Twice as Effective / Part 2: The Real Lazy Investment, the Most Basic FQ──Fixed Deposits, Foreign Currency

I'll skip this part as it's relatively basic. But it really starts from the basics.

Part 3: Add External Support to Wealth, Build Passive Income──Funds, Stocks

This section teaches a detailed explanation of K-lines, explaining the meaning of the often-seen Red K and Black K. Is it possible to have a Red K but not make money? And it also explains the meaning of KD. This video has benefited me a lot.

This section teaches about the problems that may occur with regular fixed investments. In the past, it was best to buy regular fixed investments in a rising stock market, which could continuously generate stable profits. But if you buy into a continuously declining trend, how can you save yourself:

• Take profits appropriately, stop investing, or switch targets. After all, regular fixed investments still need to have a good target. It is recommended to choose ETFs that constantly adjust their component stocks.
• Regular fixed investments after a long period of time are prone to become rigid (the impact of later investments becomes smaller).

Buying ETFs is a starting point for many beginners (like me), but there are a few questions about ETFs that I haven't been able to figure out:

• Since it tracks the index, what determines the market price?
• What happens if it goes far beyond the index itself because it's too popular?
• The results caused by the adjustment of component stocks?

These questions are explained in this video, which is really practical. It also made me understand the actions that ETF issuers need to actively control the stock price due to "premium" and "discount". It also allowed me to avoid entering at a high point based on the knowledge of the premium situation of several ETFs this year.

Part 4: Something More Difficult Than Making Money: Keeping Making Money

Warren Buffett once said: "The first rule of investment is *never lose money*. The second rule is never forget the first rule."

This section lets many beginners know some wrong myths:

• Batching, diversification, no leverage
• Avoid trading errors, know your trader.

The risk management part of regular fixed investments is also very important.

Thoughts:

I bought this book mainly for support, but I also read the whole thing. I confirmed that many of my ideas are not inconsistent with the book, and I also avoided having misunderstandings. I highly recommend that everyone buy this book to allow your financial intelligence (FQ) to grow rapidly.