As a seasoned investor in the financial markets, I have likely experienced almost all the common pitfalls that both new and experienced investors can fall into, such as blindly following trends, trading too frequently, or operating at full capacity, with the belief that the higher the position, the greater the returns.

Having navigated the ups and downs of the financial markets, I have gone through countless successes and failures, constantly reflecting and summarizing, and have eventually gained some insights.

I. Wait with an Empty Position

1. Holding or Waiting with an Empty Position

When the market trend is clearly upward, hold the position firmly, do not fear short-term fluctuations, and wait patiently for the maximization of profits;

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If the trend is unclear, then decisively wait with an empty position.

2. Empty Position for Risk Aversion

When the market shows a clear downward trend, clear the position without hesitation, and never attempt to bottom-fish for a rebound.

As the saying goes, even experts can slip in a rebound. Only when the trend reverses and the market stabilizes should one re-enter the market. Although this may miss the initial small rebound, it allows for capturing the main trend that follows.These two points are the fundamental principles of financial market investment, which seem simple but are quite challenging to implement effectively.

If one can master them, although it may not make one a top expert, achieving stable profits is not difficult.

Maintaining an empty position in financial market investment is crucial, as it helps to stay calm and enhance market insight.

Opportunities in the financial market are never scarce; there is no need to be frustrated by missing out a few times, nor should one take risks out of blind impulsiveness.

The market cycles through ups and downs, in an endless cycle.

An empty position is also a form of profit, as it at least avoids losses. Entering the market when the trend is clear, with composure and confidence, why not do it!

II. The Practice of Empty Position

Buying is a decision, and maintaining an empty position is a practice.

Having a calm mindset when holding positions and a fulfilled heart when empty are the cornerstones of success in financial market investment.Do not overly rely on others' advice, nor blindly believe in market rumors; the only thing that can accompany you steadfastly on the path of investment is yourself.

Be tolerant towards others' mistakes and humble in the face of a complex market; continuous learning and self-improvement are the directions for moving forward, and maintaining rationality and independent thinking are essential qualities.

Zhuangzi once said: "The ultimate person has no self, the divine person has no merit, and the sage has no name."

This means that by forgetting oneself and not pursuing fame and fortune, one can achieve a transcendent state.

Investing in the financial market is also like this; do not be overly attached to personal gains and losses, break out of self-imposed limitations, view the market from an objective perspective, abandon the mentality of seeking quick success, and reach a state of "no-self," which can reduce the anxiety of missing out and focus on waiting for one's own excellent opportunities.

Being in cash is a profound state!

Letting the mind fly freely is a kind of understanding, a kind of growth, and no longer being confused by missing out.

One of the common mistakes investors make in the financial market investment process is the difficulty of being in cash.

Most investors cannot stand the loneliness of being in cash and always want their funds to be in a trading state, feeling the ups and downs of the market.

However, more often than not, they suffer losses in market downturns.Especially when a real major market trend arrives, the opportunity is missed due to the occupation of funds.

Therefore, learning to hold no positions is the key to improving the efficiency of capital use, and it is also a sophisticated state of mind.

In a bull market, seize opportunities; in a bear market, preserve strength and ensure the safety of funds.

The purpose of investment is to obtain reasonable returns based on one's own abilities, just like a skilled hunter who strikes at the right time. However, if the laws of the market are violated, even with more effort, it may be fruitless.

Investment is like the changing of the seasons, with its own cyclical patterns of ups and downs. Factors such as policies and capital can influence short-term trends to a certain extent, but they cannot change long-term trends.

Have you not seen that in a bear market, many favorable policies have become opportunities for institutions to escape? Policy interventions in a bear market often just trap new investors!

If the market falls, one can build positions at lower prices;

If the market rises, there may be a missed opportunity cost, but this is only temporary.

In the medium to short term, the market's continued rise may be a trap to lure more investors, and there may be a larger drop in the future.

The temporarily lost opportunity cost will eventually be made up for.Using the interest analysis tool to determine, the main force can only maximize profits by operating in this way.

They pursue their own interests and are not willing to let retail investors share a piece of the pie at all, which is the cruelty of the financial market.

There are several situations to consider for building positions:

1. Varieties or sectors that have been fully adjusted in the previous period.

2. Varieties that have been in a long-term horizontal range and have not yet started significantly.

3. Varieties where the main force continues to increase positions.

4. Varieties that often go against the overall market trend and have their own personality.

5. Varieties or sectors stimulated by new policies or news.

6. High-quality varieties with good fundamental support. These types of varieties may even rise against the market during the adjustment period.III. It is difficult to profit without being able to go short, and strict discipline is the mark of a talent.

The financial market has a characteristic: it is hard to rise and easy to fall, with the rising cycle being short and the falling cycle being long. Because of this, there is the viewpoint that "it is difficult to profit without being able to go short." The reason why most retail investors in the financial market suffer losses is that they often go against the market trend, lack self-discipline, and over-trade.

Some investors only know how to invest with all their might but do not know when to withdraw in time. It is not surprising that they become busy workers without results because they do not know how to go short. Another implication of not being able to go short is not understanding the importance of cashing in profits in a timely manner and not grasping the principle that "cash is king."

When their positions are profitable, they show off everywhere, as if the money loses its value once it leaves the financial market, which is actually a great misunderstanding. Whether the time of being short or holding positions is longer is an important sign to distinguish whether financial market investors are mature or not.

Investors should learn to understand the market situation, be good at going short, and only act when the time is ripe. The rest of the time should be focused on research and observation. Hold cash and wait patiently, and act decisively when the market presents favorable opportunities.

As "The Art of War" by Sun Tzu says: "The good defender hides under the nine earths, and the good attacker moves above the nine heavens, thus being able to protect oneself and achieve complete victory."Investing in the financial market should also be like this, reaching a state of being adept at both offense and defense.