Investment

Write a wrap-up record to translate investment thinking into text, clarifying one’s thoughts and resisting emotional biases. Trading itself is anti-human, requiring us to maintain clarity, objectivity, and discipline. Through recording and review, we can systematically examine the decision-making process, avoiding emotional pitfalls.

As previously mentioned, the sharp drop in US equities on Friday last week, and concerns regarding a potential “trade war 2.0,” have now settled as the market opened this Monday – essentially a “false alarm.”

For investors seeking to steadily progress in the Hong Kong stock market, success doesn’t stem from precisely predicting every fluctuation of the market, but rather from establishing a scientific, rational, and strictly adhered-to investment system. This system’s core consists of three pillars: reasonable position control, intelligent rebalancing strategies, and unwavering trading discipline. This article will consolidate these key elements to provide investors with a comprehensive and detailed operational guide.

Position Control – The Cornerstone of Resilient Investing

The primary goal of resilient investing is “to preserve capital and develop afterwards.” Position control serves as the “shield” to achieve this, determining your ability to withstand market volatility.

Previously, investors focused on financial news. Since Trump’s return, they also needed to pay attention to his Twitter (a private version). The trade war continued to escalate, leading to a sharp decline on April 7th, which was quickly followed by a rebound. This time, though, are people still willing to jump in?

Background Review

On April 7, 2025, following the impact of the U.S. implementation of an “equivalency tariff” policy, global stock markets experienced a “Black Monday.” The A-share market plunged, with the Shanghai Composite Index falling by 7.34% and the Shenzhen Component Index plummeting by 12.5%, with over 4,300 stocks declining by more than 9%. The Hang Seng Index in Hong Kong also fell by 13.22%, along with European and U.S. stock indices exceeding declines of 4%. China subsequently stabilized the market through state-owned enterprise (SOE) purchases and intervention by Huishang Securities.

In the turbulent and unpredictable stock market, we often use faith and expectations as our compass, attempting to navigate through the fog and reach the shores of wealth. However, when our voyage deviates from the guidance of the compass, it’s easy to lose direction, even to run aground. This essay is about one such journey, beginning with an unwavering obsession with Xiaomi, which rose and fell repeatedly amidst the waves of capital.

Everyone has their own life trajectory, so the concept of “being a good teacher” often seems superfluous in adult circles.

Worldview

Our life’s journey begins with vastly different formative experiences, these experiences converging and flowing like rivers to ultimately shape our unique life paths. Each story, each choice, weaves together and merges within our minds, solidifying into our perception of the world – our worldview.

What you’ve witnessed as tragedy may be merely a story in a book to another person. What you disdain as a lifestyle may be precisely the ideal someone else desperately pursues.

Using AI too much, we start thinking of AI for everything – often, learning new developments is more reliable with search engines plus official project documentation.

Hong Kong stocks entered on the dip, encountered a pullback, and then just randomly traded, resulting in basic losses.

Strategy Trading

Not necessarily to actually practice and make money, but rather to improve my own abilities through learning. I don’t believe in these trading indicators; I mostly trust the national fortune (luck) and investing in broad market indices via a buy-and-hold strategy.

It’s difficult for ordinary people to understand a policy document, and traditional financial planning is based on understanding annualized returns. However, the calculation method of an increasing term life insurance policy is Internal Rate of Return (IRR), and there’s a difference between these two – what’s the difference and why does it exist?

When funds are invested in one go, Internal Rate of Return (IRR) and Annualized Return (Annualized Return) produce the same results.

Backtesting requires: proportionate method (price-weighted return method), a simple explanation, and examples. Also, why cannot use add-subtract method for adjustment, and recommendations for Python historical data sources using the proportionate method.

Okay, let’s explain the “proportionate method (price-weighted return method)” in an easy-to-understand way, along with why the “add-subtract method” is not suitable, and we’ll recommend some Python historical data sources using the proportionate method.