How to establish one's own trading mindset? In fact, brothers, trading is like arranging troops and formations in battle You need to master the identification of traps Determine the intention of the main force and follow closely Give up your childish ideas Whenever there is a hint of distracting thoughts Not far from the Cliff of Death Technology is only for verification purposes War cannot rely on technology to draw lines The enemy won't march along your line segment Don't be wild and take things for granted The "way" of investment: understanding the world and understanding oneself. (1) Knowing oneself means doing the right thing, sticking to one's own circle of abilities, acknowledging human weaknesses, and understanding investment, among others. (2) Understanding the world requires knowledge of various fundamental disciplines, especially paying attention to some common anti common sense phenomena. (3) Contrary to common sense anomalies, there is non-linear growth and irrational behavior. The changes in the world are fundamentally nonlinear, and investors often exhibit irrational behavior. (4) Investors need to consciously train different ways of thinking, including grid thinking, historical thinking, cyclical thinking, long-term thinking, psychological thinking, value thinking, and demand thinking, among others. 2. The "trend" of investment: Only by following the trend can one achieve success in investment. (1) The main factors affecting the cyclical fluctuations of asset prices are economic and financial cycles. Generally speaking, the length of a financial cycle is longer than that of an economic cycle, and one financial cycle will include multiple economic cycles. (2) There are two core indicators for judging the financial cycle: broad credit scale and real estate prices. During the upward phase of the financial cycle, overall liquidity tends to be loose, financial regulation is also relatively relaxed, and asset prices will continue to rise. During the downturn, overall liquidity is tight, financial regulation is becoming increasingly strict, asset prices continue to decline, and financial risks are constantly exposed and cleared. Investors should choose financial assets with stronger liquidity and higher certainty during the downturn period. (3) Investors should seize the energy transition cycle and technological innovation cycle, and focus on areas such as fossil energy transition, clean power supply, transportation electrification, carbon neutrality, energy digitization, as well as technologies such as quantum computing, artificial intelligence, the Internet of Things, robotics, virtual reality and augmented reality, blockchain, stablecoins, etc. 3. The "art" of investment: Asset allocation needs to be flexible. (1) The traditional allocation model of stocks and bonds has become increasingly fragile because in recent years, the positive correlation between stocks and bonds has become higher and higher, often resulting in a situation of a double kill between stocks and bonds. (2) In a highly uncertain environment, investors need to further explore diversified investment allocation plans, build more flexible and stable portfolios, strengthen liquidity management of assets, and allocate different asset plans based on the length of time. (3) Long term strategic asset allocation strategy, mid-term dynamic asset allocation strategy, and short-term tactical asset allocation strategy. In the long term, we mainly consider changes in factors, in the medium term, we consider the rotation of economic cycles, and in the short term, we need to analyze economic fundamentals, policies, funding, valuation, and technology. Important point: The first rule of investment is not to lose money, and the second rule is to do well in the first rule. 2. Financial data is completely abnormally distributed, and a few extreme risks have a significant impact on the financial market. 3. All economic history is the slow heartbeat of the social organism. The concentration and forced redistribution of wealth is its enormous contraction and expansion movement. 4. Going with the flow means grasping the asset rotation cycle of the investment world, investing when asset values are undervalued, and exiting when asset prices are high. 5. By observing the money supply to determine short-term tightness, and measuring medium - to long-term trends by observing credit related situations, one can roughly judge the monetary and financial cycle. Asset allocation is one of the important determinants of investment efficiency.