The magic of the Three-Three Principle

Previous article, we posted eight pits that investors can easily fall off during trading. Judging from the feedback of shareholders, the fifth pit fell more. So what is the way to climb out of the fifth pit? In the course of actual combat, Sima summed up the Three-Three Principle, which can effectively solve this problem.

The three-three principle is the abbreviation of the "three buy three no buy principle". Specifically, it is "buy good and not buy bad, buy cooked without buying raw, buy low and not buy high". What does that mean? Let's make a note.

The so-called "buy good and not buy bad" means that we must buy companies with sustained good performance, and do not buy companies with poor performance and losses. Why stick to this one? You can filter two risks: the first risk is a sudden thunderstorm, the many areas of thunderstorms are companies with poor performance, companies with good fundamentals will hardly burst thunderstorms, when have you ever seen What thunder will explode in Guizhou Maotai and Katazai? Secondly, once it falls, the gods do not know where it will fall, from the value law of "commodity prices finally reflect value", a stock with poor fundamentals can be infinitely close to zero. No matter how much money you have, what price you are, and you are involved in such a stock, you face the risk of your funds being cleared. Therefore, only stop loss. Pits with frequent stop losses will never jump out.

The so-called "buy cooked and not bought raw", that is to say, we have studied and carefully analyzed a company, and we feel that this company is good and worth investing. What to do at this time? Don't rush to buy first, put it into the pool of self-selected stocks, track it, let it run for a while to see, observe its stock nature, observe its trend, and slowly understand it. When his business situation is understood and the stock nature is familiar, then look for opportunities to buy, and the odds of winning are high. On the contrary, tickets bought on the spur of the moment are random behaviors of emotion control and rationality. I will regret it afterwards and eventually cut the meat. Think about those idiot men and women who rely on hormones to flood and marry on impulse, are most of them going to endure the pain of cutting flesh in the end, and Labor Yan will fly away? On the contrary, those men and women who know each other and appreciate each other will have a long-term happy married life. In fact, it is all a truth.

The so-called "buy low, not buy high". It is said that one of the rules of stock operation is "yin and yang conversion", which must be adjusted when it rises more, and rebounds when it falls more. This is the most basic law. Since it is a law, we must act according to the principle of law. After meeting the above two principles, then patiently wait for the purchase point. This buy point is the low after the pullback. Resolutely not to be seduced by the big Yang line and continuous rise, but patiently wait for the pullback, in the low amount, low price, others can not look at the position, or in the just appeared when the multi-hair force, we go to lurk. Don't worry about not being able to buy a good ticket, as long as you have patience, most stocks will wait until it is safer and more comfortable to buy. To buy according to this principle overcomes the greed of human nature, stands against the masses, and becomes a minority in the market. And the real money in the market is always a minority of people with reverse thinking.

The above three or three principles, as long as you use your heart to understand and practice, you will definitely overcome the vice of "chasing up and killing, repeatedly cutting meat", and begin to enjoy the fun of making money.

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