Many investors have been investing in stocks for many years, but they still cannot accurately judge the trend. Why?
Many investors are trapped when they buy, but they often rise sharply when they sell. Why?
Many investors are keen on short-term trading and often hit the daily limit, but their returns underperform the market or even lose money?
Many investors have been investing in stocks for many years, but they still cannot accurately judge the trend. I personally understand that the method is wrong. Most people can improve and correct themselves by making continuous mistakes, but the length of time varies. Generally speaking, if you have just entered the stock market and meet a leader who leads you, then this person will have a great impact on you. If this person's ideas are flawed and his methods are wrong, then I regret to tell you that most people need It takes ten years to turn it around. How many decades have passed in my life? In 2005, I had a brother who was a stock trader who took me into the stock market. However, in the bull market of 2006 and 2007, I chased the rise and the fall, and my assets shrank. Although I didn’t lose much, looking back, Horrible.
First of all, is accurate, it is to solve what kind of stocks will continue to rise in the future , which means that we need to predict the future trend in advance. I believe that the daily transactions in Shanghai and Shenzhen have reached trillions recently, and the investment in buying Investors all buy in the expectation that it will rise. If you think it will fall, will you buy? But every day it rises and falls. Compared with the trend of the stock market, many investors make wrong judgments. Many people will repeatedly choose better dishes in the vegetable market. However, when buying in the stock market, some investors are often just influenced by their emotions. Influence, buy and sell quickly, often regret. The essence of
is: high growth + low price-to-earnings ratio + profit model, a good company! However, it is a bit difficult to meet these conditions for . Generally, only when there is a sharp decline, such as when it fell to 2800 points this year, many good companies + good prices will emerge! The current stock market is only 3400 points, but now many such stocks have doubled from their lows. It is unrealistic for many people to wait until 2800 points again to buy.
However, if a company meets the high growth + low price-to-earnings ratio + profit model, can be selected in two ways: buy a small amount + buy on dips to continuously reduce the cost of holding shares.
Secondly, the prerequisite for to dare to take a heavy position is that you know the listed company very well and firmly believe in your investment logic. At least you must conduct in-depth research and long-term tracking to have a deep understanding of the listed company. It can also be said that it is based on your own very effective stock selection model.
If you are just influenced by your own emotions and buy in a hurry, you will generally not be able to hold on to it, and you will not dare to take a heavy position. There are too many factors that affect the stock price. Even the chairman of the company may not be able to judge his own company well. For example, Tencent . Ten years ago, Mr. Ma reduced his holdings of his own stocks many times. If it were later, In a few years, the income will be ten times that of the starting point.
Many successful stock market investments are based on heavy positions, which are spread across many stocks. Not only can the risk not be dispersed, but in fact, big money cannot be made. Heavy positions do not mean high risk. High risk is based on your wrong stock selection logic!
Finally, any successful investment is inseparable from holding on to it. In A shares , many people think that there is no investment value, only speculative value. In fact, this is biased and overgeneralizing.
The reason why many people can't hold on to big bull stocks is that they buy at high points because they are too expensive, and the other is that they hold stocks at high positions, which makes them extremely anxious and makes them feel very uncomfortable regardless of the ups and downs. Look Look at 2006, look at 2015, has a unilateral rise in prices, many investors can’t sleep at night, why? Even if you buy high-priced stocks and hold heavy positions, I believe you all feel the same way!
This is also a problem that most investors have to solve. We often face the stocks of some good companies, but good companies must have a good price, which is a perennially high price. Blindly taking heavy positions is not advisable.
Good company + high position = lower expectations + buy on dips + buy in batches + leave emergency funds! In this way, can deal with it calmly, even if it faces systemic risks, it will not fall into a big fall all of a sudden.
Investment is anti-human. This is the most difficult part of investing. Just like at 2800 this year, many people are talking about risk, not value. Currently, many people talk about value investment, but risk often follows them. No matter how outstanding a company is in history, it is not surprising at all that its stock price has halved or even halved. Even if you see clearly, it is not surprising at all to fall into the same pit.
