Article statement: All content is derived from the original theory of Chan, combined with my own insights. To achieve the most original insights, one must comprehend the original text.
1. The core of all investments is cost. Cost = opportunity. If it's lower than the market's average cost, you won't lose.
2. Volatility is the market's risk; use volatility to reduce holding costs.
3. The first element for market survival is to eliminate all preferences.
4. A winning investment is a good investment; otherwise, it is all delusion.
5. Recognizing market traps is just the first step; the next step is to learn how to use market traps to win.
6. The so-called rationality corresponds to a set of value system principles; attempting to defeat the market through these so-called principles is the greatest psychological basis of these principles, and this is the foundation of all capital lies and myths. True rationality is to see through various rational lies; rationality has always been merely the imagined emperor's new clothes.
7. For the market, entering it means participating in life and death; without relying on any theoretical basis, moving calmly between various patterns, and not being attracted by anything can allow you to maintain your true self. Once your true self is firm, you can face life and death without fear.
8. For market participants, it is essential to always be clear about the model they are currently participating in. However, most people in the market do not know what they are doing and do not even know how they are dying; the market is basically composed of such people.
9. Once an asset starts to rise, never casually throw it away. If it hasn't even broken the 30-day line, it proves the trend is strong, so hold on. There is a principle for selling, which is divided into two situations. One is a slowly rising trend; once there is an accelerated rise, always pay attention to selling opportunities. The other situation is when the first wave rises explosively; after a correction, if the second wave rises shows divergence or large volume, be very careful and look for opportunities to exit.
10. Bull market principle: In a bull market, ultimately all assets will have a chance to perform; as long as you grasp the rhythm and have a high utilization of funds, if the money earned after a bull market does not exceed several times the final increase of the index, you are basically just a retail investor. To achieve this, there is one principle: avoid major pullbacks and use pullbacks to step in time with sector rotation. Never believe in any fundamental hype; fundamentals are just used to bolster confidence and fool others. Just know the fundamentals in others' minds and their corresponding impacts, but never believe in them yourself.
