My overall framework is aimed at the mindset of ordinary people. What is an ordinary person? It's someone who panics when others panic, who feels anxious when others feel anxious, and who goes crazy when others go crazy. Therefore, when an ordinary person buys a declining asset, they will feel anxious every day. Watching their own losses while others gain will lead to emotional instability. Ultimately, they decide to sell their losing, stagnant assets and chase after the popular ones.

However, the likely result of this behavior is that the assets sold will rise, and the newly bought ones will fall. This is due to mean reversion, style rotation, and the fact that most people behave this way, and most people cannot make money.

Thus, you must have a strict rule: buy into solid, stable assets as a baseline, and do not be swayed; otherwise, winning or losing is merely a superficial process.

Moreover, aside from the first rule, there is another prerequisite: the assets you buy should not be expensive.

If you buy into a position at nearly 300 points on $SOL with your entire capital, you might have to wait longer to make a profit. If you buy after a 60%-70% decline and then utilize various strategies to lower your cost, your chances of making a profit will increase.

Let me say it again.

Ordinary people only have the capabilities and emotions of ordinary people. To prevent ordinary people from doing foolish things, they can only use strategies to restrain themselves. Cutting losses here today, cutting losses there tomorrow, will reduce the principal, ultimately leading to total defeat.

Therefore, this strategy applicable to ordinary people is most important:

First, the assets will not die. High certainty.

Second, the cost of buying.

Third, selling and taking profits thereafter.

Design the strategy, execute the strategy, and only then can one survive.