In classic investment guides, a seasoned investor summarized 10 investment principles that must be checked before getting started. This methodology deeply reflects his core investment philosophy.

Let's start with the first one—risk.

**Risk is the starting point of investment assessment**

All investment decisions should fundamentally begin with assessing risk. It's not about how much you can earn, but first understanding how much you might lose. This mindset determines the entire operational direction that follows.

How to implement this specifically?

First, estimate an appropriate safety margin. Simply put, leave enough buffer space for yourself. There should be a clear gap between the actual value of the investment target and your purchase price. This way, even if your judgment is biased, you won't suffer catastrophic losses.

Second, carefully select trading counterparts. Dealing with people of questionable moral character always carries the highest risk. No matter how good the project or how high the returns, if you encounter dishonest partners, you could end up losing everything. This is no small matter.

Third, insist on risk-matched compensation. The greater the risk you take, the more generous the returns should be. Do not recklessly accept investments beyond your risk tolerance just to pursue high returns. This is the bottom line.

This set of principles may seem simple, but few investors can truly execute them well. Being able to prioritize risk in your thinking has already surpassed the investment level of most people.