Why can't homework be copied randomly?

Today, April 29th, is a truly remarkable day. The three main themes of Super Central Bank Week + AI earnings frenzy + geopolitical shocks have experienced an epic-level upheaval. Combined with the closure of the Japanese market, this has triggered an astronomical volume of trading.

On such a day, I coincidentally found the answer to a question I couldn't figure out in the past: in the same market, whose homework should you copy? Why do you sometimes get trapped after copying a big shot's homework?

Actually, homework cannot be copied blindly. Others' models cannot be replicated. There is one most fundamental, yet most easily overlooked reason: the scale of capital is different.

The target strategies for the three tiers of small capital, medium capital, and large capital are different.

Small capital needs to be steady, preserve principal, and make profits without losing the initial investment.

Medium capital needs to grasp risk control, manage drawdowns, and allocate assets properly.

Large capital looks at the long term, betting on high odds, using the idle money of the wealthy.

Therefore, before copying homework, you need to see which tier your capital belongs to, and which tier the other party (the big shot's capital) belongs to.

Only then does copying homework make sense. Different goals, using the same battle plan, is inherently unsuitable.

I have experienced this before, specifically with that Mara copycat homework incident. Some people criticized, some supported. In reality, it was simply not seeing clearly how much capital you have in your pocket before copying the homework.

This stock is also the one where I have suffered my biggest loss, and I still hold it, with no intention of cutting losses.

The wealthy's play is to hold a target they've identified for 3-5 years without moving. The money lost is not called a loss; it's a high-volatility held asset.

For small capital, if you can't withstand this volatility, the play is different.

In investing, whether you are the one copying homework or the one being copied, there is no right or wrong. It's about seeing which approach is more suitable for whom.

If you want to have fun in the game arena, adjusting your mindset is more important than learning techniques. If you take a risk and copy the homework of someone not in your same tier, then you have to pay the tuition fee of losses.

Warren Buffett's homework is not easy for ordinary people to copy, and that's precisely the reason.

In short, before making a choice, while assessing the risks, the first thing to do is to look at the capital tier in your pocket before making a decision.