One, true winners in the stock market are not those who earn a lot, but those who can hold onto it.
Making money is not the difficulty; holding onto it is the skill.
The biggest mistake retail investors often make is not that they can't make money, but that:
Made 2,000 points without selling, lost all after a 500-point drop.
In A-shares, the cycle of long and short is the norm:
In a bull market, everyone shouts profit.
When a bear market comes, everyone is deeply trapped.
Many can make money, but very few can keep it.
Two, do you understand the essence of 'paper wealth' in the stock market?
The 24 trillion yuan 'evaporated' in A-shares is actually just the 'bubble of paper wealth' bursting.
Just like the example of flipping land—
One acre of land rising from 10,000 to 1 million, your paper assets also double.
But when no one is buying, and you can't sell 10,000, your '2 million' is just an illusion.
When market value rises, it's 'marginal leverage'; when market value falls, it's 'bubble burst'.
Many retail investors are consumed by the market in this 'false paper wealth'.
Three, the three psychological traps that can't be held.
1️⃣ Can't bear to sell when making a profit, afraid to cut losses when losing.
"Just a little more profit and I'll exit" "Just a little more drop and I'll add"
Result: Profits evaporated, losses doubled.
2️⃣ Fighting at high positions, panicking at low positions.
Can't bear to sell at high positions, fantasizing about more gains.
When truly at a low point, afraid to bottom fish, no money to add positions.
3️⃣ Can't understand the trend, scared away by fluctuations.
One bearish line, cut at the lowest point.
One bullish line, chase at the highest point.
Four, a true master: not one who doesn’t make mistakes, but one who dares to admit and correct mistakes.
Only those who can cut losses are qualified to talk about making money; only those who can stay in cash are qualified to discuss holding positions.
Their commonality is:
Have clear trading rules.
Have stop-loss points and position discipline.
Having the calmness of 'if wrong, just exit'.
You may not be smart, but you cannot lack rules.
You may not be fully invested, but you cannot move frequently.
Five, 'Playing dead trading method': slow is fast.
Investment masters like Larry Williams and Jesse Livermore ultimately relied not on miraculous operations, but on:
Endure, wait, play dead, and only take action when a major market movement arrives.
Do not move before the trend is established.
Do not act chaotically while the trend is ongoing.
Do not stop before the trend ends.
Those who truly earn big by waiting won't be easily frightened out by short-term fluctuations.
Six, above the trend, fluctuations are friends.
"If you can't see the direction clearly, any fluctuation is torment."
On the contrary,Those who can see the trend clearly regard fluctuations as friends.
The changes you can achieve:
❌ Treat fluctuations as enemies → ✅ Treat fluctuations as opportunities.
❌ Worry about ups and downs → ✅ Use wave highs and lows to absorb.
❌ Frequent stock changes within the day → ✅ One order to capture the entire trend.
Seven, the ultimate practice of stock trading is simplicity and composure.
Once a trend is established, one can 'wait with confidence and boldness'; this is the true advanced state of stock trading.
Not surprised by rises, not afraid of falls.
Only the trend in mind, only the rhythm in sight.
🧩 Summary: Three stages of stock trading advancement.
📍**Beginner stage: watching the market every day, frequent trading, losing more than winning.
📍Intermediate stage: starting to research fundamentals, technicals, and cycles.
📍Advanced stage: **Only look at the trend, only wait for opportunities, only trade familiar stocks.
The greater the simplicity, the simpler the master.
✅ The truth about the Chinese stock market ①: The truth of market value evaporation and the fate of retail investors.
✅ The truth about the Chinese stock market ②: The lazy person's stock selection method; it’s enough to trade 3-5 familiar stocks in a lifetime.
✅ The truth about the Chinese stock market ③: The stock market does not rely on making more, but on holding on.
If you seriously read these three articles, I suggest you
Deep reading 10 times, each time brings new insights.
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