As 2024 draws to a close, the A-share market has experienced notable leaps, with an overall increase of 12.67% throughout the yearThe CSI 300 index climbed by 14.68%, while the ChiNext index, representing the growth enterprise market in China, saw a commendable rise of 13.23%. These figures mark a significant rebound in the Chinese stock market post-pandemic, reflecting stronger investor sentiment and economic recovery.

In my personal trading account, I achieved a total increase of 30.10%, significantly outperforming the CSI 300 by 15.42%. While this performance is commendable, I can't ignore the greater height reached by many of my peers, with some doubling their investments by year's endSuch revelations can stir a mixture of pride and envy in any investor's heart.

Despite my year-end assessment, there lingers an undeniable dissatisfaction with the returns I generated against the backdrop of the booming market

It's disheartening that while many investors leveraged the market's upward momentum for substantial profits, I feel I did not fully capitalize on the opportunities available to me during the latter half of the year.

Many sectors caught my attention, notably those related to the HarmonyOS concept, scientific instruments, and the maternal and infant industriesThese segments have shown an immense potential for growthNotably, following September, stock prices in these sectors began not merely to climb but to double, igniting a wave of speculation and investment.

However, despite missing out on these opportunities, my perspective remains analytical rather than regretfulMy investment decisions, albeit rooted in cautious optimism, were not backed by the rigorous research that such volatile sectors demand

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The money lost in these ventures does not weigh heavily on me, as I believe should the opportunities fall outside of one’s strategic purview, the potential loss isn’t a missed opportunity worth mourning.

This analytical worldview, reinforced by my background in statistics, has shaped my approach to investmentI often think in terms of probabilities, striving to ensure a high rate of success over numerous transactions before putting my faith in any trading decisionTo me, earning a profit across a thousand trades solidifies trust in my strategy.

Setting aside the more speculative stocks, my greatest regret comes from two particular equitiesDespite substantial research and adequate time spent observing, I failed to extract the full potential of these investments—an oversight that has imparted critical lessons.

The first was Zhongchong Co., a stock I had monitored for five years

Although it had garnered significant returns post-adjustment during the 2022-2023 period, I overlooked its competitive landscape, marked by low barriers to entry and fierce rivalryI had forgotten the essential rule that when riding a trend, details can often be secondary; the key is to be on the train at the right time.

The second stock that continued to elude me was SMIC (Semiconductor Manufacturing International Corporation). This stock not only reflected a clear value proposition, but also promised substantial returns given the right market conditionsAfter finally managing to purchase it at an attractive price, I mistakenly sold my position to invest in a shorter-term play, only to watch SMIC soar without meHerein lies the critical lesson: while good companies may be hard to find, securing them at favorable prices can be even trickier.

This ordeal has reminded me of a striking passage from "Reminiscences of a Stock Operator" about the importance of maintaining one's positions

Never allow the fear of missing out on a short-term gain to overshadow the pursuit of long-term value.

Aside from those fleeting moments of regret, I hold a measure of satisfaction with my investment journey in 2024. I have adopted a mindset that allows me to stay calm amidst market fluctuations—much like weeding through life's unceremonious trialsI stand at a vantage point where my investment philosophy has crystallized; I now understand what to invest in, when to make these purchases, and the timings of my exits.

Even in the face of underperformance against the broader market throughout the last quarter, I feel a strong sense of accomplishmentI recognize that I have effectively maintained my thresholds and guidelines, sparing myself from impulsive decisions common among so many traders.

The market has educated me on profitable engagement, steering clear of dizzying highs associated with penny stocks, trends, and fleeting fads

I have come to despise risk in its many forms, instead prioritizing opportunities that offer favorable odds—guaranteed victories are my primary objective, outside of which, my interest wanes.

As I navigate through the intricacies of investing, I constantly remind myself that my goal is to profit, not chase adrenalineWith my path clearly defined, I find solace in waiting for the right opportunities to materialize.

As I reflect upon my approach, I wish to share the principles that underlie my investment strategyThese concepts have been woven throughout my previous writings, and I hope they resonate with those ready to grasp themFor those who comprehend, great; those who don't, no matter.

Firstly, it’s vital to understand the fundamental principles governing the stock market

Rooted in the Age of Discovery, it represents a model of shared risk and reward distribution, driven by humanity's collective pursuit of sustainable growth.

The essence of the stock market lies in the aspiration for wealth accumulation, with companies acting as tools to actualize this ambitionUnlike mere gambling, the stock market operates with purpose and directionIt is an arena where discernment can yield rewards—a balancing act between risks assumed and returns gained.

Nevertheless, one must ponder: what is risk?

Contrary to conventional belief, risk doesn't inherently exist in the universeIt's the human experience that births the concept of riskAs articulated in the Dao De Jing, "Heaven and Earth are indifferent; they treat all things as straw dogs." This underscores that the universe operates devoid of favoritism or animosity.

Thus, the rules and trajectories of societal dynamics are predetermined; we are merely observers attempting to comprehend their manifestations

In such a context, where is the risk for those recognizing the paths laid out before them? Risk is subjective, contingent upon the perspective one adopts.

For example, a cow that cannot locate grass faces a risk of hungerConversely, for a lion, a hungry cow translates to an opportunity for an easy huntThis duality exists within the stock market: someone’s assumed risk transforms into another's chance for profit.

The same principle applies in investmentEach individual engages in a different game, where overcoming one's inherent biases is crucial to achieving favorable outcomesSuccess relies on pitting one’s advantages against the opponent’s weaknesses.

In essence, each individual on this planet possesses unique survival instincts, attributing their advantages and disadvantages to their inherent attributes

The essence lies not in declaring oneself superior or inferior, but rather embracing the understanding of how to navigate challenges to one’s benefit.

As articulated by the philosopher M, the idea of the weak prevailing over the strong is a myth; the truth resides in the strength prevailing over weakness, be it through a collective force or concentrated individuals identified through insight.

Thus, the realm of investment becomes simplifiedIt’s a matter of identifying and acting upon exceptional opportunities before they are recognized widelyThis leads us to the core principle that buying stocks equates to purchasing a portion of a company.

Identifying noteworthy companies involves comprehending their future sales revenue, valuing cash flows, and discerning their operational models within the context of market dynamics

Insights into industry cycles can aid in predicting future performance; thus, a learning journey ensues to augment cognitive capacities and informational pathways.

Ultimately, investment is a decision-making process framed by information managementWhether capitalizing on insider information or deploying exceptional analytical capabilities to glean insights from fewer data points, successful investments come from knowledge.

As long as one consistently invests where the odds favor profitability, financial success is a natural outcomeThe challenge lies in recognizing where these certain opportunities exist—a task requiring diligent reading and effort, reflecting the disciplined approach to investmentEven understanding this doesn't guarantee practical execution; success necessitates both strategy and perseverance.