[Red Envelope] Brother Bai Bei reads Chapter 18 of the "Tao Te Ching": The more you ignore the Great Way, the easier you are to be deceived by illusions!

Chapter 18

The Great Way is abandoned, and then there is benevolence and righteousness;
Wisdom emerges, and then there is great falsehood;
Disorder among kin, and then there is filial piety and compassion;
The nation falls into chaos, and then there are loyal ministers.

In the previous chapter, we discussed the four levels of investment mastery. The higher one’s understanding, the closer they are to the laws of nature, and the more they can avoid mistakes. Higher mastery is not easy to achieve; otherwise, even Buddha himself would not complain, having sold three measures and three liters of gold, yet still feeling it was undervalued!

This chapter is brief but profound. Laozi offers a sharper perspective: the more one deviates from the Great Way, the more apparent chaos and falsehood become. It is said: weeds grow wildly, crops fail to thrive.

In the investment market, this chapter is a wake-up call. Understanding it helps us see through market illusions, false appearances, restlessness, and traps, and better appreciate the importance of laws, trends, cycles, rules, and wisdom.

1. The Great Way is abandoned, and then there is benevolence and righteousness

The true Great Way is the natural operation of the universe, requiring no deliberate promotion. Only when the Great Way is abandoned do we need to emphasize benevolence and morality.

In investing, the Great Way refers to the market’s inherent laws, cycles, and trends. Only by understanding these can we avoid being deceived by superficial phenomena and recognize the importance of building a comprehensive understanding of the market rather than chasing after one or two trading techniques.

When a market or individual deviates from the laws, abandons the trends, and ignores cycles—meaning the Great Way is abandoned—they turn to superficial appearances, believing in slogans, motivational quotes, and so-called faith, such as:

• Hold long-term, never sell even if it means death;
• Value investing, hold blindly without moving;
• Have a big picture, have faith, hold on…

These words may not be wrong in themselves, but if they are detached from trends, cycles, and laws, they become mere self-comforting lies, self-deception, and denial of reality—that is the abandonment of the Great Way and the appearance of benevolence and righteousness.

Those who truly understand the Way focus only on laws, not slogans; only on trends, not emotions; only on cycles, not motivational quotes. They do not need motivational slogans to boost confidence nor faith to endure hardships.

2. Wisdom emerges, and then there is great falsehood

The more one pursues faith, absolute certainty, and divine calculations, the more likely they are to make serious mistakes and stray from the truth of the market.

No industry, company, or investment method should be regarded as a faith—whether it’s Kweichow Moutai, Nvidia, China National Petroleum, or strategies like value investing, technical analysis, blue-chip stocks, or leading stocks.

When the market weakens, yet people believe that long-term is gold and value is invincible; when stocks break support, yet they comfort themselves with big-picture thinking and avoid short-term trading; when the market is about to fall, yet they listen to calls for national stabilization or long-term optimism—these seemingly righteous beliefs are, in essence, just masks after the Great Way has been abandoned.

Those who truly understand the Way only see laws, not slogans; only trust signals, not faith.

When a person is obsessed with clever tricks and quick profits, they drift further from genuine laws, only seeing false appearances in the market and missing the underlying principles.

Authentic investing is never about clever tricks but about simplicity, calmness, adherence to laws, and respect for trends. Great skill appears simple; great wisdom seems foolish. The more one flaunts cleverness, the farther they are from the Great Way; the more they seek divine accuracy, the more likely they are to fall.

3. Disorder among kin, and then there is filial piety and compassion

A harmonious family does not need to constantly emphasize filial piety and compassion; only when kin are at odds and relationships are broken will these virtues be repeatedly mentioned.

In investing, the more one loses and the more their mindset collapses, the more they shout about long-term holding, big-picture thinking, value, and faith.

Those who truly follow the trend, respect the rules, and can maintain consistent profits are calm, have healthy accounts, and do not need to constantly self-soothe. Only those operating against the trend, knowing little about the market, disrespecting rules, lacking reverence, and relying on gut feelings will keep making excuses and justifications.

The more chaotic the understanding, the more emotional the approach; the more losses, the more they talk about faith. This is the “disorder among kin, and then there is filial piety and compassion.”

4. The country is in chaos, and then there are loyal ministers

When the world is peaceful, it’s hard to see who is truly loyal; only when the country is in chaos and crisis do loyal ministers stand out.

In investing, during a bull market, everyone appears to be a stock god; it’s hard to tell who truly understands the market and its laws. When a bear market hits and crashes occur, it becomes clear who is truly exposed.

In a bull market, everyone thinks they have achieved enlightenment and become stock gods; in a bear market, only then do we see who truly守道, who can survive long-term in this market.

Real experts do not panic in a bull market, do not panic in a bear market, and are not迷失 in volatility. Because they follow laws, cycles, trends, and systems—not relying on market conditions for their livelihood.

Chapter 18 serves as a sober reminder to all investors: investing is not about fooling oneself with clever tricks but about understanding laws, respecting trends, and revering rules.

All chaos stems from the abandonment of the Great Way. All losses originate from straying from laws.

Writing this series is addictive; hours pass unnoticed, eyesight quickly deteriorates. I hope to keep going—keep it up!

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