What I gained from investing in the stock market for ten days

At the beginning of the new year of 2022, I decided to make some pocket money through short-term investments.

I liquidated my long-term holdings and began the road of short-term investment exploration.

This does not mean that I have abandoned value investing and stopped insisting on long-termism.

It's just that my needs have changed now, and I want to have real realization in the short term, even if it's not the most profitable way.

Because for freelancers, sustained cash gains give me a real sense of security.

My principal is very limited, only 50,000 yuan.

The chart below shows the earnings for these ten days:

From January 4 to January 19, 2 weeks, the income is 3981 yuan. The yield is about 8%.

This result seems to be OK. But I know that there is an element of luck for newbies here, and there are floating losses on the books.

Overall, I didn't take the risk, and on the basis of controlling risk, I took a fool's errand of buying low and selling high.

The overall investment strategy has the following three points:

1. How to control risks? A leader or quality company with a low valuation.

2. How to realize the benefits? Expectations are starting to improve, valuations are starting to return, and they have been relatively active recently.

3. Set yourself a profit expectation, such as 3%, reach it and sell, unless you are very sure that it will rise, otherwise never nostalgic.

During this period, on the one hand, pay attention to the stock market, policy information, and company research reports; on the other hand, pay attention to their own mentality.

It is still very interesting to examine one's own heart in a way that earns extra money, to learn to control greedy desires, to learn to live with anxious emotions, and to grow in awareness.

This is the path I chose, taking on all the emotions myself, and when I don't make money, it is when I concentrate on studying, reading and investing in myself.

So, I am very grateful to the stock market for giving real cash encouragement to those who have a heart. I will also form my own short-term investment system step by step in this process.

Here's what I learned about investing in these ten days:

(1) The stock market still conforms to the law of two eight, 80% of the time the stock is falling, 20% of the time the stock is rising. Don't invest impulsively, even if you hold it short, leave yourself a chip and wait for the opportunity. Otherwise, a hasty operation will bring losses and entrapment to yourself, which will lead to anxiety and ineffective energy consumption, and will miss better investment opportunities.

(2) Control your greedy desires, remain rational, and if you have summarized some principles, then stick to them.

(3) If you are accurate, when you continue to fall, you must have the patience to wait, and you must also have the courage to gradually increase your position when you prejudge the low.

(4) Don't follow the wind with a little wind, be able to calm down, and only buy what you understand. Otherwise, it is likely to take a step into the air, and your principal is so much, if you want to climb up again, you must not only tearfully cut meat, but also get a higher yield to earn the same amount of money as before.

In short, controlling risks and reducing losses is the first hurdle of investment. This is not enough, just put it down.