The first is to get back to value and away from the hype. Performance is the basis of value, and value is the benchmark for stock prices. Although in the short term, the price fluctuations of many stocks deviate from the logic of value investing. But overall, the top ten stocks in the past decade have very good performance as support. The stocks with attractive gains in the short term may not be the winners, but the stocks with good performance will certainly give you enough gains in the long run. Soros's success will be difficult to replicate because few people profit from the hype, but value-based investing will never disappoint investors. The second is to reject blind obedience and rational judgment. Many investors are too sensitive to the ups and downs of the market, resulting in a herd effect in the capital market: listening to some grapevine or individual guidance to buy a few stocks, overdraft the gains in advance; Or panic selling when prices fall, exacerbating the decline. This caused many people to blindly enter the market during the bull market. The third is to diversify, not buy just one stock. Buying a particular stock has a high potential return, but it also carries a high risk. Once a black swan event is encountered, under the current limit mechanism, it is difficult for ordinary investors to sell before the limit opens. The point of diversification is to diversify risk. Good diversification can significantly reduce the risk of investment without reducing the potential return. The key to diversification is that the smaller the correlation of the investment industry, the better, because the company is very affected by the industry it belongs to. When an industry declines, the overall expectation is lowered, and even the leading enterprises are difficult to get out of the independent market. Fourth, control leverage and prudent investment. Many people have continuously increased their investment leverage through margin lending and private capital allocation, and obtained rich returns. Then in just a few months, the stock market ended in the chain reaction of tightening and financing, and countless people lost a lot of their savings because of the stock market crash. The most attractive part of leverage is that it can be small and broad, creating investment conditions for investors with insufficient funds.

However, everything has two sides. Leverage amplifies losses as well as gains. Leverage fry, it is to expand the risk that oneself faces undoubtedly. The fifth is to refuse to be emotional, not to buy and sell up and down as a reference standard. Investors find it harder to accept the regret of a bad decision than the actual loss. So, most shareholders choose to hold positions when the surplus fall bag for safety, and in the loss of continuous holding. But it often backfires, leading investors to sell good stocks too early and hold bad stocks too long. This kind of emotional investing is the main cause of failure for the average investor.

Conclusion: Investment methods are only tools, only learn to use, in order to obtain stable returns in the market. And investment in the end, in fact, is a process of overcoming self. Professional investors avoid losses due to their emotional weaknesses through the five disciplines of returning to value, rational judgment, diversification, controlling leverage, and refusing to be emotional.

（Writer：Dirick）