From trial and error in investment to steady growth: discussing the underlying logic of market survival.

When I first started investing, the market fluctuated wildly. I entered the market with limited capital and experienced continuous losses, leading to a significant reduction in my account balance. I even once thought about giving up this field. But after calming down, I realized that the essence of investing is not relying on "insider information", "connections", or "early bird opportunities", but rather establishing a survival logic that suits oneself.

In recent years, I have consistently adhered to three core principles: respect the signals of market trading volume, perceive the emotional cycle, and wait for a clear trend rhythm. There are no so-called "miraculous operations" or overnight wealth miracles; it is only through repeatedly monitoring and reviewing the market that I have gradually understood its temperament.

Today I want to share some experiences summarized from practical situations, which may help you avoid some common investment pitfalls - but please be sure to note: all investments carry risks, especially in high volatility areas, and you should carefully assess your own risk tolerance.

On the investment journey, these "survival rules" are worth remembering.

1. Capital management is the lifeline.

Even if funds are limited, do not put all your chips on a single trade. If you can capture 1-2 clear trend opportunities in a week, it's enough to achieve reasonable returns. Always keep a portion of cash reserves to cope with sudden market fluctuations. Avoid being fully invested or going all in, so you can have some leeway during market downturns.

2. Cognition Determines the Limit of Returns

Profits always match cognition. Simulated trading can help practice skills, but the real test with real money is mindset and judgment. Spending time studying the fundamentals of the assets and learning basic analysis tools is more important than blindly following trends. Remember: every penny you earn is a realization of your understanding of the market.

3. Learn to "take profit when it's good", and more importantly, "cut losses in a timely manner".

After positive news is announced, if you do not take profits in a timely manner that day, the high point at the opening on the next day is often a good time to cash out — market sentiment tends to quickly realize profits after good news, and a correction may occur afterwards. More importantly, is the stop-loss: once you realize that your directional judgment is wrong, exit immediately, do not hold onto the illusion of "waiting to break even," protecting your capital should always be the top priority.

4. Avoid the risks of "special periods".

As the holidays approach, market liquidity typically declines, and price fluctuations may become more severe. It is advisable to reduce positions or pause trading during this time. In a low liquidity environment, even small amounts of capital can trigger significant volatility, which is not favorable for ordinary investors.

5. It's not about having many tools, but about using them skillfully.

You don't need to be proficient in every technical analysis tool; just find 1-2 indicators that suit your style and study them in depth. For example, short-term traders can focus on the combination of short-term candlesticks and trading volume, along with trend indicators to determine buy and sell points. However, tools are only aids and cannot replace an understanding of the essence of the market.

6. Mindset is more important than skills.

In investing, "not being able to sleep" is often not due to the amount invested, but rather a lack of in-depth research on the assets or the use of leverage beyond one's capacity. True prudent investing should allow you to remain composed while holding positions, just like a reasonable asset allocation—remember: any trade that requires relying on "gambling" to profit is not worth participating in.

Final words

There has never been a "foolproof" method for investing. The essence of turning losses into profits is a process of continuously refining the trading system and restraining human weaknesses. Focusing on a strategy that suits you, consistently sticking to it, and optimizing through reviews is far more reliable than chasing various "profit models."