My mother retired and speculated at home stocks, although the Chinese stock market has been very bad in recent years, but she started from the initial 5,000 yuan, and now has made a profit of more than 800,000 yuan. It's really not easy. She summed up some dry experience, no nonsense, whether you are a novice or a senior stockholder who has just entered the market, you must read it carefully, I believe you will come back to thank me.
My mom's greatest joy now is sitting in front of the computer and looking at stocks
Many people choose not to act when they lose money, and treat the stocks that were originally intended to be short-term as a growth line, and sell them immediately once they turn from a loss to a win, which is a completely blind operation. Therefore, my mother's advice is to do the opposite: hold on to it when you make a profit, and cut it off if you lose a little. Her take-profit and stop-loss principle is: when the profit is 15%, the profit falls to 10%, and if the profit falls after buying, the loss exceeds 5% of the principal, then stop the loss. Do this 100 times, and even if your win rate is only 50%, your gain will reach 800%. However, it is not difficult to do this, the main thing is to overcome greed and fear.
If you want to make money in the Chinese stock market, you have nothing to eat if you follow the crowd
Try not to touch large-cap stocks, the market value of about 40-5 billion is the best, the stock price should not be too high, the best below 10 yuan, do not buy if the performance is too good, and the poor performance can be considered. For those stocks with more themes, the closer they are to the hot spots, the more stories there are, and there are stories where there are funds, and the stock price will rise if there are funds. My mother mainly does short-term leading stocks, especially like leading stocks with poor performance, small plates, and many themes.
It is best to keep two or three stocks, retail investors often do not know how to take short positions, and they are eager to buy and sell stocks every day. Once the stock in your hand falls, you are anxious to make up for the position, and as a result, the principal is small, the stock is more, the luck psychology is heavy, and of course you lose money in the end.
When the end of the market rises sharply, it is advisable to reduce the position, because the probability of a pullback the next day is greater. A rise in shrinkage may signal a continuation of the rally, while a decline in shrinkage may signal a further decline. If the volume is amplified but the stock price is stagnating, this is usually a sign of a head, and when the shrinkage stops, the bottom may have already appeared. A huge surge is often followed by a pullback, and a moderate increase may indicate a continued rise. If the volume accelerates, this is usually a sign of a fast follow-up. The success rate of these recommendations is as high as 85%.
Stocks have risen and fallen, so stay optimistic
Once a stock is trending, it doesn't need to be analyzed too much, just follow the flow of money. People who don't know how to judge a trend can do so by looking at moving averages. The moving average can divide the market into bulls and bears, with bulls pointing upwards and bears pointing downwards. Short-term traders can observe the five-day moving average, while medium- to long-term traders can refer to the 20-day moving average.
That's all my mom shared. If you're feeling helpless, lost, and overwhelmed in stock investing, give it a try. My mother said that when you make money, you should repay the society, and she doesn't hide these stock trading methods, which can be regarded as giving back to the society. Well, let's talk about it for today, thank you for your attention and likes.