Investing is like commanding troops and deploying formations — the chances of victory are decided in the war room.

I. Mindset

· The General commands diverse branches and coordinates joint operations.

· The Battalion Commander manages multiple divisions (capital allocations) and knows when to advance or retreat.

· The Platoon Leader trains the troops and maintains morale, strictly enforcing orders.

A platoon leader first cultivates courage, a battalion commander then develops benevolence, and the general eventually integrates wisdom, benevolence, and courage as one.

One must rise through the ranks step by step through real battles.

II. Strategy

“Prepare to be invincible first, then wait for the enemy’s vulnerability.”

· Short-Term: Like scouts and snipers — swift, elusive, and not to be reckless.

· Medium-Term: Like armored units in key battles — take fire and press forward with courage.

· Long-Term: Like massive encirclement campaigns — build strongholds and fight persistent, grinding battles.

III. Tactics

"Military formations are ever-changing, like water taking different shapes."

In daily operations:

· Short-term tradings must follow market momentum (but always with awareness of the long-term trend).

· Long-term positions require buying more when markets drop and trimming when they rise.

It’s very difficult to go against the overall trend in short-term trading. Long-term trend-following should align with macro trends (like an upward-moving market), not short-term price action.

During long-term staged buying, short- and mid-term traders might be shorting. When long-term positions are nearly complete, short-term traders may turn bullish. If the team lacks cohesion, it leads to total collapse.

Generally, averaging down in short-term trades is a fatal mistake. Some deceive themselves by pretending it’s a long-term position after failure.

IV. Logistics

Using leverage to snowball only works in mid-to-long-term buyings — and must follow the trend.

· Mortgage financing: Only refinance in areas where property prices are unlikely to fall.

· Futures: Trade with the trend (long or short), add positions using unrealized gains, and close immediately upon reversal.

· Stocks: Average down while the price falls, then pledge shares to increase position once it reverses — the more you chase, the more you gain. Be prepared but restrained — then strike like a tiger from its cage.

Short-term trading with leverage, sometimes against the macro trend, is extremely difficult. So it must be in a separate account, like a watertight compartment in a large ship.

V. “Great Fullness Appears Empty — Its Use Is Inexhaustible.”

Great skill appears clumsy. 

Investing doesn’t require extreme intelligence — capital management and a solid plan matter more.

Most people never understand this. Some only do after suffering great losses.

Those who understand without first enduring major loss — are rare talents, born with extraordinary gifts.