Three Key Investment Principles

✅ 1. Do Not Invest Based Solely on Others' Opinions

One of the biggest mistakes in investing is relying solely on rumors or popular opinions like "I heard it's good" or "Everyone is buying it."
The problem with this approach is that it makes post-mortem analysis impossible.
Before investing in any company, you must thoroughly analyze its key indicators, financial statements, business performance, and market share.

📌 Why Are You Buying It?

• Clearly define your reasons for buying or holding off.
• Set your desired entry price and target exit price in advance.

📌 Investment Without Analysis VS Investment With Analysis

• Investing based on rumors leads to emotional reactions during losses.
• On the other hand, if you analyze before investing, you can learn from your mistakes and avoid repeating them.
• Even if two investors lose the same amount of money, one gains experience and insight while the other is left with emotional exhaustion.

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✅ 2. Establish Clear Stop-Loss and Take-Profit Criteria

Without clear criteria for stop-loss (minimizing losses) and take-profit (realizing gains), you may miss the right timing both in down markets and up markets.

📌 Stop-Loss Criteria

• -30% or more decline → Sell 20-30% monthly
• -50% or more decline → Sell 50-60% monthly
• -70% or more decline → Sell all shares

📌 Take-Profit Criteria

• +30% or more increase → Sell 20-30% monthly
• +50% or more increase → Sell 20-30%
• +70~100% or more increase → Sell 50-60%

Blindly holding onto a falling stock is not always the right answer. If a stock is consistently dropping, holding it indefinitely only magnifies the risk.

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✅ 3. Diversification is Essential

There's a famous saying: "Don’t put all your eggs in one basket."
This means that instead of putting all your money into one asset, you should diversify across multiple assets to minimize risk.

📌 Diversification Strategy

1. Divide investments into short-term, mid-term, and long-term holdings
2. Allocate investments across safe assets, growth assets, and dividend assets
3. Adjust the asset mix based on economic conditions

Just like you wouldn’t buy only tangerines in winter because they taste good, you shouldn't only invest in one sector. Your portfolio should be as diverse as a well-balanced fruit basket.

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✅ 4. Do Not Let Emotions Control Your Decisions

Regrets like "I should have bought," "I should have sold," only add stress.
Investing is half mental battle.
Even when you feel anxious or regretful, you must make decisions based on principles, not emotions.

📌 Three Principles for Managing Emotions

1. Do not regret past losses.
2. Follow your stop-loss and take-profit guidelines like a machine.
3. Minimize stress to stay in the market for the long run.

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✅ 5. Set Up an Investment Plan That Fits Your Financial Situation

Don’t just jump into investing with a vague idea.

You need a well-structured plan that matches your current financial status.

📌 Strategies Based on Financial Standing

1. Less than 50% of annual salary saved
   • Focus entirely on building seed money
   • Allocate 100% of your monthly savings to building capital
2. 50% to 70% of annual salary saved
   • 70% to savings, 30% to investment
   • Use spare funds to strengthen your foundational assets
3. 80% to 100% of annual salary saved
   • 50% to savings, 50% to investment
   • At this stage, you have a foundation and can expand your assets
4. More than 100% of annual salary saved
   • Increase your investment allocation to 70%
   • Maintain at least 30% for savings as a safety net

Never forget: The difference of just one zero in your principal can result in a difference of one zero in your returns.

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✅ 6. Increase the Proportion of Long-term Investments

Holding a larger percentage (60% or more) of your investments for the long term allows you to stay calm during market fluctuations.

• Maintain a certain amount of cash reserves
• Secure some liquidity for short-term trading opportunities

If you focus on the big picture instead of short-term volatility, you’ll achieve solid returns in the long run.

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✅ 7. Final Advice: Don’t Be a "Should’ve, Could’ve" Person

Regrets like "I should have bought," "I should have sold," will only weaken your mental strength.
Clearly define why you bought a stock and when you plan to sell it.
The biggest enemy in investing is your own emotions.

"Think before you invest, plan before you invest, review after you invest."
If you can practice these three principles, you can invest without regrets.

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📌 Where Is Your Investment Strategy Right Now?

Are you just following rumors and tips?
Or are you moving based on analysis and structured planning?
Now is the time to reflect on your investment approach.