Core Viewpoint - The essence of the stock market is that it is primarily a speculative market, where investors should focus on arbitrage and speculation rather than pure investment [1]. Risk Management - The first rule emphasizes that risk management should be prioritized over profit-making, as avoiding losses is crucial for potential gains [2]. - Investors should only engage in trades when the opportunities outweigh the risks, and should avoid situations where they lack understanding or confidence [2][4]. Quantitative and Qualitative Changes - The transition from quantitative to qualitative changes in stock trends is essential, with a focus on identifying turning points during accumulation and release of market forces [7][10]. - Investors should monitor the strength of market forces to make informed decisions about entering or exiting positions [8][9]. Overall and Local Rules - The relationship between the overall market and individual stocks is crucial, as each stock goes through various phases in its price cycle [12][13]. - Understanding which phase a stock is in can guide whether to adopt a short-term or long-term trading strategy [13]. Internal and External Factors - Stock price movements are driven by both internal factors (like economic development and corporate performance) and external factors (such as policy changes and unexpected events) [14][15]. - It is important not to confuse a one-time success with a guaranteed method for future trades [17]. Complexity of Market Rules - The stock market lacks simple rules, which contributes to the high number of losers compared to winners [18]. - A comprehensive and dynamic trading system is necessary, as successful experiences are time-sensitive and context-dependent [19][29]. Golden Ratio in Stock Market - The concept of the golden ratio is applicable in the stock market, helping investors identify potential support and resistance levels based on price movements [20][24]. - Specific percentage levels derived from the golden ratio can indicate points of significant market reaction, aiding in decision-making [24][25]. Probability Rules - Successful trading requires a focus on probabilities, emphasizing the importance of minimizing risks and maximizing gains [26]. - Investors should avoid making decisions based on isolated incidents and should adhere to a disciplined trading approach [28][29].