Small individual trader live trading, dividend-enhanced investment record

I am an ordinary individual entrepreneur running a small barbershop for six years. Currently, my family is stable, income is decent, and work-life balance is maintained. I can rest four days a month, feel content and grounded, and am quite satisfied with my current situation.

At this stage, my main goal is to establish a sustainable investment system tailored to myself, using a “main business + investment” approach to steadily grow my family’s assets and improve long-term quality of life.

I have been involved in the stock market for quite some time. Since March 2015, I have nearly eleven years of investing experience.
A few years ago, I mainly traded based on intuition. When lucky, I made some money and used the gains to settle my family. During a two- or three-year period when funds were tight, I basically stopped participating in the market. Last year, I returned to stocks, focusing on a high-dividend consumer stock, but the market declined significantly, and my annual return was nearly zero.

Through this reflection, I have gained a clearer understanding of myself and the market:

1. I am a typical risk-averse investor. A drawdown of over 20% in my holdings causes noticeable psychological stress, and I cannot tolerate large fluctuations.
2. I consider my investing ability average. I lack the sharpness to capture market logic and do not have the professional skills to deeply research companies or analyze industries, making me prone to personal thinking biases.
3. I also have typical retail investor tendencies: unwilling to cut losses after losses, anxious about profits slipping away after gains, and easily influenced by emotions in trading.

Recognizing these limitations, I have anchored my investment focus on dividend ETFs and related assets.
I believe that dividend ETFs can achieve an annualized return of about 8% to 10% over the long term. Based on this, I have developed a simple personal strategy:
Using a basket of dividend ETFs as the core, combined with stocks that have a history of high dividends, are undervalued, and have potential for a rebound with performance reversal, selected across industries based on certain indicators. I aim to build a portfolio of about 5-10 stocks, with the goal of slightly outperforming dividend ETFs over the long term, striving for an excess return of 1% to 3% annually. Achieving over 3% would be considered quite good.

To avoid mistakes caused by emotions and retail investor thinking, I set clear buy and sell conditions before entering trades. I execute all transactions using broker conditional orders, applying rules to constrain myself and reduce subjective decision-making.

I started this thread mainly to document my investment practice and iterative process.
Currently, my stock selection framework is still being refined; I am only tracking strategy and performance.

My benchmark for the strategy is dividend ETFs, not the CSI 300.
If in the next two or three years, this approach can consistently outperform dividend ETFs by more than 5%, it indicates the strategy is effective. If not, I will confidently hold dividend ETFs long-term and stop blindly experimenting.
Additionally, I have another account focused on convertible bonds.
I will continue recording here and welcome advice and guidance from experienced investors.