Core Viewpoint - The article discusses common investment pitfalls and how to avoid them, emphasizing the importance of balancing risk, return, and liquidity in investment decisions [1]. Group 1: Risk and Return - Investors often focus solely on expected returns while neglecting risks and liquidity, which can lead to significant losses, especially during market volatility [2]. - The concept of the "impossible trinity" in investing highlights that it is not possible to have high liquidity, high returns, and low risk simultaneously [2]. - It is crucial for investors to consider their risk tolerance, investment goals, and the duration of their capital commitment when selecting investment products [2]. Group 2: Trading Behavior - Frequent trading and chasing short-term gains can be detrimental, particularly in fund investments, as it requires substantial effort and can lead to increased transaction costs [3][4]. - Short-term trading may cause investors to become overly focused on market fluctuations, hindering their ability to recognize long-term trends and make rational decisions [4]. Group 3: Information and Decision-Making - Investors lacking fundamental knowledge may fall prey to market rumors, which can lead to irrational investment decisions [4]. - It is essential for investors to remain calm and rational, independently assessing the accuracy of information and its potential impact on the market [4]. - Making decisions based on thorough analysis and research is vital to avoid the risks associated with following trends blindly [4].