There are only two types of people who really make money in the market:

One type is the talented, extremely smart, and very hardworking individuals. They have a fox-like sharpness for market opportunities, often able to capture major trends and can turn hundreds of thousands into millions within a year or even a few months. Many top performers are this type of person. However, this type is generally very difficult for ordinary people to learn; they may never learn it in their lifetime, as their talent, character, and intelligence are innate.

The other type consists of those with average intelligence, character, and talent, but they are optimistic about the market and have their own understanding and principles. They only buy the well-recognized good assets or leading assets in the market, hold them for the medium to long term, and seem to have done nothing, yet they end up making dozens of times their investment.

Sadly,

The first type is extremely difficult to learn, possibly less than 1% can do it, yet people are eager to learn from them.

The second type can be learned, but many people look down upon it.

Because the first type appears "handsome," "glamorous," and "fast."

The second type appears "slow," "rustic," and "lacking in operational feel."

But the outcome is often:

The first type cannot learn and ends up losing money impulsively and becoming a joke.

The second type is unwilling to learn, resulting in losses and being forced out during a bull market.

What is truly worth cultivating is the ability to become the second type of person.

It’s not about inactivity, but about less activity. It’s not about holding on blindly, but holding based on a big logic;

If you want to become the second type of person, you must achieve these key points:

Your understanding must be stable: Why are you holding it? Is it based on the track? The structure? Or the cycle? Can the logic explain it clearly?

Your principles must be set: Where is the profit-taking point, how often to increase your position, how much loss can you tolerate, all these must be determined in advance.

Remain steadfast: Don't be swayed by emotions, avoid random operations based on news.

Be able to accept profit drawdowns: The market goes in waves; to fully benefit from a segment, it’s basically impossible without experiencing a few drawdowns.

Avoid heavy positions in emotional stocks: No matter how hot a theme is, don’t gamble blindly detached from the fundamentals.

The most important thing during the holding process is to have principles. Wanting to take profits when prices rise, wanting to stop losses when prices fall, wanting to add positions while fearing losses, all of these lack principles. High selling and low buying is not wrong, but if after selling the price doesn't drop back, or it doesn't drop to your expected price and goes up again, you basically end up being out.