Not for inventory & fund management

This is not a list of “what to do,”

But a more important boundary constraint — “what not to do.”

The essence of investing is not about how many times you get it right,

But whether you avoid those mistakes that can destroy you in one shot.

The significance of this list is to make rational decisions when emotions, greed, and fear arise,

Allowing the system to operate stably over the long term.

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1. Invest lifelong in no more than 30 stocks and 30 tokens.
2. Don’t waste energy on petty disputes; either go all in or don’t invest at all.
3. No confidence in sleeping peacefully after buying; don’t invest.
4. Don’t invest if the business doesn’t have a 5-10x growth potential in 5 years.
5. Don’t invest in things that don’t align with doing great work with excellent people.
6. Price isn’t so cheap that it’s shocking (50% off) — don’t invest.
7. Don’t invest if there’s no sustainable, guaranteed profitability in the future.
8. Never use leverage strategies; leverage will eliminate me before the lowest price arrives.
9. Don’t invest if you don’t understand, can’t explain, hesitate, or rely on common sense judgments.
10. Total investment in a single asset should not exceed 20% of total assets, with cash holdings not below 20%.
11. There must be at least 24 hours between generating a trading idea and executing the order.
12. The number of simultaneous holdings can never exceed 7.
13. The idea to start a position and the action to build it must be more than a week apart.

If “not doing” addresses decision errors,

Then capital management addresses — even if judgments are wrong, the system won’t collapse.

True long-term gains don’t come from heavy positions in one go,

But from surviving through countless uncertain moments.

1. Shallow Water Zone: mean reversion trading arbitrage, total 20%, individual position no more than 5%.
2. Deep Water Zone: long-term holding with compound growth, total 60%, individual position no more than 20%.
3. Waiting Zone: maintain liquidity for financial management, cash not below 20%, functioning as waiting for the shallow water zone to drop below 50% to upgrade to deep water zone.
4. Maintain living expenses covered for over a year, independent of investment accounts.
5. Establish a stable primary income source, regularly withdrawing a fixed amount into the waiting zone each month.

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Investing isn’t about who makes money faster,

But about who survives longer and more steadily.

Not doing list is your bottom line;

Capital management is your moat.

When both exist,

You truly have the ability to survive long-term and profit continuously in the market.

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