21 Stock Investment Golden Rules:

1. If you don’t put effort into researching the fundamentals, you’re essentially just handing over money.
2. Don’t blindly trust Wall Street “math wizards”; use the information gap in the industry where you are and focus deeply on one or two areas.
3. Behind every stock is a living, breathing company—first figure out how it makes money.
4. In the short term, stock prices are driven by sentiment; in the long term, they’re driven by performance—be patient with successful companies and you’ll eventually get rewarded.
5. You must clarify why you’re holding the stock; children will eventually grow up, but stocks may not necessarily rise.
6. People who spend all day fantasizing about getting rich with an all-in bet are often the ones who lose the worst.
7. Retail investors have limited energy—at any time, you should ideally hold no more than 5 stocks at once.
8. If you can’t find stocks worth investing in, stay away from the stock market; keeping your money in the bank without losing is still a win.
9. Before buying a stock, you must check the balance sheet to see whether the company has bankruptcy risk.
10. The hottest things are likely to die—avoid popular “momentum” stocks in hot sectors; outstanding companies in less popular sectors are more likely to become big winners.
11. Don’t blindly bottom-fish when investing in startups; wait patiently until they turn profitable before entering.
12. When investing in struggling industries, you must wait for recovery signals, and only buy absolute top leaders that have the ability to get through the tough times.
13. Retail investors’ biggest advantage is concentrated holdings—if you can catch just a few big winners in your lifetime, it may be enough to change your fate.
14. Be observant: watch the stock market from everyday life. You’ll find the timing of high-growth “black horse” opportunities often comes much earlier than for professional investors.
15. Stock market crashes are the norm—be ready with cash and buy core assets at low prices.
16. Making money takes both knowledge and nerve. People who get panicky and cut losses blindly during crashes aren’t suited for trading.
17. Block out all kinds of pessimistic predictions and “market collapse” talk in the news—rest assured, the sky won’t fall.
18. Give up the fantasy—nobody can accurately predict macroeconomy, interest rates, or market trends in advance.
19. Diligence determines returns—the more companies you research, the higher the probability you’ll find companies that are far better than expectations.
20. When holding stocks of excellent companies, time is your friend—the longer you hold, the greater the chance to make money.
21. If you have the courage but no time to do the homework on fundamentals, the best choice is to diversify into funds with different styles.