In the world of investing, losing 50 million in a single day is not uncommon. As one investor lamented at a tea gathering: "That night, I returned all my profits from three years to the market, only to realize that the sharpest scythe is not the market trend, but the urgency within myself."

This story reminds us that investing requires wisdom and patience. As an experienced investor, I would like to share three core strategies that can help you maintain stable profits in the next investment cycle.

First, position management: build a defensive wall before considering an offense.

The key is to buy more at low prices and less at high prices, so that costs are always on your side. You might consider using the rectangular method or the pyramid method:

The rectangle method divides funds into three equal parts and adds positions when breaking through key levels. The pyramid rule involves buying different proportions at different price levels, such as buying 40% at 10 yuan, 30% at 8 yuan, and 20% at 5 yuan, keeping 10% for emergencies.

This layout can reduce average costs, increase profit opportunities, and avoid the risks brought by high-position heavy positions.

Second, grasp the market rhythm: wait for clear signals and do not blindly guess the direction.

The main operations usually follow the pattern of accumulation, consolidation, upward movement, and distribution. Among them, the consolidation phase is the most deceptive, often causing retail investors to panic and sell at a loss.

How to cope? You can focus on the following points:
1. The stock price no longer hits new lows and trading volume shrinks, which may indicate a weakening of selling pressure;
2. The price reestablishing above the 20-day moving average may indicate a trend reversal;
3. If the trading volume increases during the breakout, then you may consider following up.

Remember, follow the trend rather than going against it; making moderate profits is wiser than risking for excessive gains.

Third, establish a solid psychological defense: prepare for the worst, strive for the best outcome.

Before each transaction, ask yourself three questions:
- Can I face it calmly if the stock price falls by 30%?
- Will losses affect my daily life?
- Where is my stop loss point?

Protecting the principal is the primary task, while compound growth is the long-term goal. Develop a detailed trading plan and strictly adhere to it.

Taking the time to think about these strategies now will bring you significant returns in future investment cycles. Remember, only by surviving can you wait for the dawn of the market.