Five Key Techniques for Position Management and Stock Selection: 1. Diversify Investments: Never hold a single stock with your entire portfolio! Hold a maximum of three stocks, and they should be from different industries (e.g., consumer goods + technology) to diversify risk. 2. Buy Low, Don't Chase Highs: Avoid buying during sharp rises. Develop the habit of "entering after a correction"—for example, when the stock price pulls back to the 30-day moving average without making a new low. 3. Winning Through Habits: Mastering these points will give you an edge over most people: Don't chase highs (50% win rate), follow upward trends (70% win rate), select stocks based on fundamentals (90% win rate), and use monthly charts for entry (95% win rate). 4. Long-Term Dollar-Cost Averaging: Hold for at least two quarters, and only enter when the price-to-earnings ratio is lower than the industry average. A thicker safety cushion ensures peace of mind. 5. Distinguish Between Hot and Cold Stocks: Don't hold popular stocks for the long term (the hype fades quickly), and don't trade unpopular stocks for the short term (the gains are slow). Master this rule to avoid 90% of the pitfalls.