After making 1 million, there are no secrets in trading.

What is the fundamental difference between investment and speculation?
Reflections after repeatedly reading 'The Intelligent Investor'
Predecessor Graham pointed out the essential difference between investment and speculation:
Investment operations are based on in-depth analysis, ensuring the safety of the principal, and obtaining appropriate returns; operations that do not meet these requirements are speculation.

Three Core Elements of Investment
From the definition of investment, it includes the following three core elements:
In-depth analysis: based on the fundamentals of the company (profitability, financial condition, industry prospects) rather than market sentiment;
Principal safety: hedging risks through 'margin of safety' (such as buying at undervalued prices);
Appropriate returns: pursuing long-term stable returns rather than short-term windfall profits.

Remember: Avoid chasing highs and cutting losses, remember: Avoid speculative shortcuts.

Four Major Traps of Speculation
Relying on market volatility: focusing on short-term price fluctuations rather than the true value of assets;
Information-driven decision-making: chasing hot trends, insider information, or technical charts, lacking independent analysis;
High-leverage gambling: while amplifying returns, risks increase exponentially;
Emotional trading: chasing highs when greedy, panic-selling when fearful, falling into a 'buy high sell low' cycle.

How to Avoid Speculation
1. Three Soul Questions:
Are you investing or speculating?
Have you analyzed the company's financial statements and business model?
Is your buying decision based on 'price below value' or 'feeling it will rise'?
Can you withstand holding a position for 3 years without growth or even a 30% drop?

2. Four Major Action Guidelines
Establish a margin of safety: only buy when the stock price is below intrinsic value by 30%;
Diversified allocation: allocate stocks, bonds, and cash according to risk tolerance;
Regular review: assess whether the logic of holdings has changed each year, rather than watching short-term fluctuations;
Reject leverage: invest with spare money to avoid the risk of liquidation.

The essence of investment is cognitive realization.
True investment is a game with oneself:
Overcome greed: refuse the temptation of 'doubling in a month';
Cultivate patience: hold assets like a farmer waiting for crops to grow;
Maintain humility: acknowledge the unpredictability of the market and focus on controllable factors.

'Time is a friend of good companies and an enemy of bad companies.' — Warren Buffett
Let's encourage each other!