The Way of Risk Management in Portfolio Management

What is the biggest fear in investing? Lack of discipline. If you can establish a rigorous system and then stick to it firmly, the rest becomes simple—just focus on your account performance.

The key words here are two: discipline and trust. Discipline is the framework, and trust is the fuel. Once you've built a risk control framework using data and logic, you should trust your judgment. Don't be scared by short-term fluctuations and keep changing your approach; that only leads to self-destruction.

There's also an interesting phenomenon: success attracts more success. Once a strategy shows positive returns, your mindset stabilizes, your execution improves, and naturally, the results get better. The reverse is also true—people who frequently cut losses and adjust often fall into a vicious cycle of worsening mindset.

So the core logic is simple: build a system → execute the system → trust yourself → accumulate wins → strengthen confidence → achieve continuous excess returns. In highly volatile markets like crypto assets, this methodology is especially important.