Value investing is the cornerstone of my thinking, but that doesn't prevent us from learning from the brilliant wisdom in the trading world, especially regarding reverence for the market and strict capital management.

We often say value investing is "buy and hold," but this absolutely does not mean turning a blind eye to losses. This reminds me of the most fatal trap for traders: holding onto losing positions.

Many traders' tragedies follow the same script: starting with reckless all-in bets that ignore position management, even making their first profit by luck, and then mistaking luck for skill. When they find that many losing positions "miraculously" recover after holding on, they treat this illusion as gospel. However, what truly determines their fate is always that one out-of-control afternoon—continuously averaging down in a one-sided market, fighting the trend until they're forced to liquidate.

Do they really not understand stop-loss? Not exactly. They just haven’t experienced that one painful lesson that shatters all illusions. You can’t teach someone with words; life teaches them, and once is enough.

What I want to say is that the "long-term holding" of value investing should not become an excuse for "holding onto losses stubbornly." A mature investor should have both the deep insight of a value investor to separate truth from falsehood and the risk awareness and iron discipline of an excellent trader to cut losses.

By broadening our thinking and combining the in-depth research of value investing with a trader’s reverence for risk and adherence to discipline, we may be able to go further and steadier in this turbulent market. Let’s encourage each other.