An interesting phenomenon: investors often find that their account gains sometimes surpass what they could earn by spending ten years building a business. It sounds a bit harsh, but many people have experienced this genuine feeling.

But behind this, there is an even more important rule — the more frequently you make moves, the less you end up earning in the end, and the more you lose. The reason is simple: frequent trading often stems from uncertainty about the market, rather than genuine investment opportunities.

Regarding money, there is a fundamental principle worth repeatedly contemplating: never gamble with money that is essential for your life on uncertain returns that are optional. People who do this are often on the path to poverty from this very step.

Everything has two dimensions — first, choosing the right direction; then, executing well within that direction. Both are important and indispensable. Many people only truly understand the weight of this truth after suffering many losses.

When it comes to borrowing money, it’s also a dilemma. Not borrowing might cause you to miss many opportunities in your lifetime; but once you borrow, there might really be no second chance. That’s why risk management is more crucial than chasing maximum returns.