"Bear market thinking" and "bull market thinking". The two have different ways of thinking execution, and it can be said that they have a 360° turn.
"Bear market thinking" often fails to achieve the "Bear market thinking" model for investors. Why? Because as the stock price gradually falls, there will be thousands of times thinking about " buying at the bottom". However, in a bear market, the decline of the stock market will only get lower and lower, and it is often fruitless in buying at the bottom.
What about "bull market thinking"? Often when the stock market is gradually rising, investors will tell themselves to "stop profit" and "sell" thousands of times in their minds, but the stock market will move higher and higher. Often, after selling chips, waiting for the callback is fruitless, and you can only take over at a high level in the end. What should be done to deal with bear market and bull market thinking?
1. "Bear market thinking", focus on short positions, don't buy at the bottom!
buy at the bottom in a bear market, remember the sentence "The more you copy, the lower you get", so don't buy at the bottom. It is not deny that some investors can buy to the bottom of the stock market, but it is only a very small number of them. For this extremely small probability, ordinary investors can completely assume that it does not exist. Why don’t you buy at the bottom?
1. Ordinary investors don’t know where the “bottom” is, and even professional investors don’t know where the “bottom” is. And when the "bottom" has arrived, there may be a lower "bottom". Therefore, the failure rate of bottom-buying is very high.
2. What is the equivalent of holding shares in the bear market? It is equivalent to having a huge shrinkage in one's own wealth. It turns out that stocks with a market value of 100,000 may have experienced a bear market, with a market value of only 30,000 or 50,000!
So how should we deal with the bear market?
1. Formulate an investment strategy that suits you;
2. Rationally analyze the bear market and resolutely not buy at the bottom;
3. Firmly hold on to the short position plan;
4. If you cannot firmly hold on to the short position plan due to emotions, cognition, etc., and settle for the second best, you can choose a fixed investment method, after all, it can reduce risks and reduce holding costs.
So, how should we buy at the bottom in the "bear market thinking"? In terms of personal experience, there will be some obvious situations when the bear market is approaching its end:
1. The overall stock index of the stock market is at a relatively low level. Every time the bear market is approaching the end of the year, it will be a relatively low level in the stock index. Corresponding response strategies can be formulated when the stock index is below the average level;
2. The stock index points are mainly at a relatively low level;
3. The overall dividend yield of the stock market rises;
4. From the technical level, long-term technical indicators will fall to the "freezing point", which is a very poor level;
5. There are signs of a market economy transformation in the future.
If there are the above five points, then the opportunity to buy at the bottom will exist. This kind of bottom-buying is not a one-time investment, but a strategy.
2. "Bulle market thinking", hold on top, and don't be afraid of rising!
"Bul market thinking" is completely different from "bear market thinking". The bear market thinking mainly focuses on reducing risks, short positions, and not investing, because the decline of most stocks will cause damage to the principal of their investment holdings. But what about the "bull market thinking"?
What is the main thing in the bull market? It is up, and it is upsides rising. So, what are you most afraid of during the rise? It's a short position.
So, what should be like in the "bull market thinking"? That is: hold it as the main! Don’t worry about the price of stocks falling "cliff-like" as it rarely happens in a bull market, and it won’t happen at all. The greater probability is an increase, but the stock’s increase and time are different.
Don’t think about taking stocks off profits in the middle of the process, as they will often continue to rise after the rise.
1. During the bull market, it is mainly to hold stocks, and you are not afraid of rising highs;
2. A-shares are a general type of stock market, which means that when a bull market comes, most stocks will rise, so don’t worry about holding or not rising.
3. Since the bull market has risen significantly, it will be a bad presentation with any thinking to understand it. Find selling points, try to use technology to find selling points, and it is also a technical selling point that is longer than the weekly level.Why? Because, often when the bull market rises, emotions are accompanied by them, and emotions are analyzed from an objective perspective of the stock market, which is incomplete. So, where is the top that may appear?
1. The stock market is obviously bubble-like;
2. Investors are investing in a high position, and even resigning to trade stocks. The streets and alleys are talking about the stock market;
3. The stock market valuation is very high;
4. The points of the main index of the stock market have reached historical highs.
So, when a similar situation occurs, stop profit if you should stop profit, don’t be ruthless.
