Build a Trading Model That Suits You

As an investor, if you truly want to enter the stock market, survive in the long run, and seek growth, the primary task is to establish a trading model that fits you. Determine whether you are suited for long-term investing, medium-term investing, swing trading, or short-term trading, and whether you should invest in funds or individual stocks. These fundamental decisions must be made carefully—do not blindly imitate others.

Many investors often say things like, "So-and-so made a fortune," "So-and-so called this rally correctly," "So-and-so went all-in at the right time," or "So-and-so is simply amazing." I advise all investors (especially retail traders) to establish their own suitable trading model after deciding to enter securities investment, rather than blindly copying others. What works for others may not work for you—what suits you is the best.

To put it simply:

1. If you lack time and skills but have spare money: Buy after a major crash or stock market crash, hold for several years, and profit cyclically.

2. If you have skills and time: Combine medium and short-term strategies, capitalizing on major swing opportunities.

3. If you are skilled and confident: Engage in short-term trading in daily operations—it can relieve boredom and even help prevent dementia!

As for me, I can share my evolution. Over the past decade or so, I’ve mainly used a long-term account for large cycles and major swings, focusing on medium-to-long-term holdings. The position strategies I often discuss are typical short-term + small swing trading accounts, which make up a small portion of my overall investments—the bulk remains in the long-term account. The main purpose of the short-term account is to maintain my market sense, refine my trading model, and earn some extra cash for bills or groceries. Regular followers already know this, as I’ve mentioned it many times.

When it comes to market timing, besides technical analysis, personal discipline is crucial. For example:

• Long-term investing: Focus on respecting the trend.

• Medium-term investing: Focus on respecting major swing points.

• Short-term + small swing trading: Focus on respecting ranges and price movements.

In recent years, many sectors can be approached with a "long-term view, short-term execution" strategy—meaning cyclical rotation is very clear. Many quality stocks surge and then drop 50%–60%, only to be hyped again. "Long-term view, short-term execution" means initially positioning with a medium-to-long-term perspective but using rolling techniques during execution to gradually reduce holding costs and maximize profits. However, this requires strong execution skills and technical expertise.

In conclusion:

• Some profit from long-term investing.

• Some profit from medium-term swings.

• Some profit from short-term + small swing trading.

• Even quant traders made money last year.

Thus, the key question is: How should investors choose a path that suits them and build a trading model that fits them?

Additionally, the stock market is not for everyone, and not everyone can make money. Be clear about your suitability—if it fits you, stay, study techniques, and improve. If not, choose a more suitable career and contribute to the nation’s development!