Reflecting on years of stock trading experiences, although I didn’t make a fortune, I also didn’t lose too much. The biggest issue was an unreasonable allocation of funds and an unstable mindset. Currently, my primary source of income is work, earning a fixed salary each day through part-time jobs, and my ability to withstand financial fluctuations remains at the level of bonds and bank deposits. However, people are inherently greedy; if you buy too little, even when prices rise, you won’t make money; and if you buy too much, you will lose money. At this point, maintaining a stable mindset is particularly important, as it can help us keep our wealth afloat.

Historical Loss Cases

Aside from when I first entered the market, I’ve encountered small-cap and near-new stocks. Later, my focus shifted to blue-chip large-cap stocks: Industrial Bank, China Unicom, Hisense Electronics, ZTESC, and various large index funds.

Investing in blue chips is like aligning with “old money”:

• When Evergrande’s problems arose, bank stocks plummeted alongside it, successfully identifying the exit point. This reflected a lack of understanding regarding the broader economic market; real estate accounted for too much of China’s economy, and the implications were too extensive to simply “land” – the subsequent continued decline in the stock market saw blue-chip stocks like Industrial Bank continue to rise for about two years.

• During the initial stages of the trade war, ZTESC suffered a severe blow, with its share price also falling dramatically. It has since gradually recovered.

• Hisense Electronics is an old veteran; after Ant Financial withdrew, its stock price also plummeted significantly. However, this stock had a controlling shareholder manipulating it, and it could surge several times each year. With reasonable position sizing, you wouldn’t lose much.

Bond Investment

Let’s just say it was a lucky outcome, essentially benefiting from falling interest rates. There were changes at my job in Hangzhou, leading me to abandon the idea of buying a house and liquidate my existing bank term deposits. I then focused on reinvesting previously held bonds, significantly increasing my bond investment ratio. Fortunately, interest rates have been declining for several years, allowing me to capitalize on the “bull market” in bonds.

During my six months back in Hangzhou, I had plenty of time to reflect and gain clarity. Real estate isn’t a necessity, nor is staying in a particular location – my ability to handle stress was thus improved. If I were to lose my job, the mortgage would be like a mountain to climb.

Investment Return Expectations

“The expected annualized oral commitment is comparable to a three-year fixed bank deposit,” but in reality, it’s greedy and wants more. From the initial frantic increase (adding positions), to later exhausting cash flow. Purchases of insurance, real estate, and weddings represent significant outflows of capital, and overall, there wasn’t enough capital flow left over, leading to insufficient funds later on.

The subsequent plan is to long-term hold brokerage ETFs and the Hang Seng Tech Index, with an asset allocation that still includes insurance as a base, medium-to-long term bonds, and stock funds.