$XIAOMI-W(01810.HK) has finally returned to the cost line. The first purchase was made at 48, all the way down to 37, with all sorts of comments in between about Xiaomi was done for, or seeing it drop to 8.

After a year of stock trading, the lesson learned is that news and comments are just for fun—don’t take them too seriously or you’ll easily be misled. Secondly, retail investors are better off focusing on medium- to long-term investments and reducing short-term frequent trading. Only institutions can handle continuous day trading. Once you’ve decided on a strategy, stick to it firmly, rather than changing your moves frequently based on today’s news or tomorrow’s rumors.

Lastly, never let profit margins cloud your judgment. Higher potential returns come with higher potential losses. My strategy is to never buy more than the maximum loss I can bear. Before every purchase, I ask myself if I can handle the worst-case scenario, then decide whether to buy. If it hits the loss limit, cut losses immediately. Even if it rises later, it doesn’t mean you cut losses too early—it means your entry point was too high.

Finally,

First, cut one-third of the position. Bullish in the long term, but worried about selling pressure near the previous support level on the left, so there might be a small short-term pullback. If it returns to 40, I plan to buy back. If not, I’ll hold the rest tightly until 50.