The yield phenomenon: if you buy a stock with a capital of 1 million dollars, after a 100% increase is becomes 2 million dollars; but to fall another 50%, it is back to 1 million dollars. This shows that it is much easier to lose 50% than to earn 100%, so it is important to stop profit and stop loss in the investment process.

Up and down stop phenomenon: If you have 1 million dollars, the first day after a 10% stop is 1.1 million dollars, and the second day after a -10% stop is left with 990,000 dollars, instead of the imaginary 1 million dollars. A 10% stop up produces a very different effect than a 10% stop down.

The phenomenon of volatility: If you have $1 million, earn 40% in the first year, lose 20% in the second year, earn 40% in the third year, lose 20% in the fourth year, earn 40% in the fifth year, lose 20% in the sixth year, and have assets remaining of $1.45 million, the six-year annualized rate of return is only 5.83%, which is even lower than the five-year certificated treasury bond coupon rate. This emphasizes the importance of pursuing sound returns in the investment process.