In a place like the stock market, the vast majority of people trade with emotions.
The fluctuation of stock prices and the setting off of the environmental atmosphere will definitely hook up with retail investors to operate indiscriminately.
Many people must be struggling with the question of whether to buy or sell A-shares after the market opens.
In order to answer this question, it is very likely that everyone will look around to see the prediction analysis of various big Vs.
I just want to know whether A-shares will rise or fall in the future.
If your operation is based on predictions of future trends, listen to me and don't buy it.
This is typical of the behavior of leeks.
As soon as the trend is different from what you predicted, you are immediately overwhelmed.
And the stock market is extremely volatile these days, and with a little hesitation, the numbers in your account will fluctuate greatly.
Then you're going to get nervous.
For everyone, what to do after the opening comes down to two questions:
1. What is your buying logic?
2. What is your selling logic?
As long as you answer these two questions, you're doing the right thing. Even if you lose money, you are right.
But if you can't answer these two questions, you're doing something wrong. Even if you make money, it's wrong.
Let's take a good look at what I said.
Let me give you some tips.
Everyone's buying logic is different, because everyone's investment approach is different.
For example, I'm a value investor, so I won't buy after the market opens.
Because my position has already been bought enough at the bottom, if the stock market does not rise, I will continue to buy.
But when it went up, I stopped buying it.
There's no way, value investing loves to pick up bargains!!
So why are you struggling with whether to buy it now?
Obviously, you are at least not a pure value investor, you just don't dare to take heavy positions at the bottom, and you are always afraid of falling!
Some people even play a clever trick and sell first, ready to fall to 2400 points to pick it up, but now they are empty. Losses are also written to death.
It's much more uncomfortable to step on the air than a quilt cover!
So now I must be in a hurry to buy it back.
Then you must ask yourself, are you doing value or trend?
First, the logic of buying and selling is the most important
1. If you are doing value.
Just see if what you want to buy is still cheap? Is it below your ideal valuation?
If it has exceeded your ideal valuation, you will definitely not buy it, and if it has not exceeded, then you can continue to buy.
The logic of your buying must not be because you take it for granted that the stock price will rise in the future! This is important!!
After you buy, you wait patiently until the stock price is expensive before you consider selling.
2. If you're doing trending.
Obviously, you've missed the best point to chase up.
So, let me say that you are a pseudo-trend trader.
Even you're a four-in-one. I don't even know what my investment or trading system is.
Since I want to buy at the opening, I am afraid of missing the market.
So, be sure to think ahead about what your stop-loss strategy is.
It doesn't matter how you stop the loss, the important thing is that you must stop the loss.
When you have a stop-loss strategy, all that's left is to rush in and dance with the trend.
When the stock price falls below the stop loss level, be sure to sell!
If you can't cut the meat, don't do trend trading.
After the stop loss, you take a closer look at the chart to see where the breakout level for the next buy is.
As soon as the stock price breaks out of the trend, buy it again immediately.
Don't dwell on it. That's how doing trends are.
You have to be mentally prepared because trend trading has a high error rate and you may be able to stop your losses multiple times.
Cutting meat hurts your eggs. In order to seize a big trend and make a big profit.
3. If you are doing asset allocation.
Then think about what position you should use to deal with each index based on its current valuation.
I don't need to explain much about that.
I've already given a hint to my friends on the planet.
When to reduce the position, I will do it for you.
Of course, there is no absolute right position management, just suit you.
4. If you hold a bottom position, use a small position as a swing.
Then you must distinguish between these two parts of the position, and do not mix methods.
Remember!
It is important to know that the error rate of doing bands is very high, and there is no more than 80% certainty, so try not to move around.
Many times, you think that it has risen too much, so you sell it high. As a result, it continued to rise.
Sometimes you sell at a relatively high price, but you may not be able to buy it back at a low price.
Or, maybe you've only bought a fraction back.
Regarding swing bands, I must remind everyone that when the stock price rises to a high level, it is easy to be trapped.
For example, if you sell high, you will buy low when it falls by 20%.
After you suck low, it doesn't bounce back at all and continues to bottom deep.
So don't think it's so easy to do volatility.
In the stock market, people who make a lot of money don't make money by doing swings.
Let's also think about it, the vast majority of retail investors love to do swings. And the vast majority of retail investors are losing !!
Finally, as a reminder, if you are not 80% sure, try not to move.
Dancing with volatility is a skill that every sophisticated investor must exercise.
If you can't adapt to volatility, you can't survive in the stock market.
2. Manage mindset and expectations
When the market continues to rise, everyone's inner greed is easily stimulated.
Greed should be done in moderation!
Don't think you're going to earn every penny.
In all things, when the water is full, it overflows.
Excessive greed will suffer a lot.
We must know that in the long run, people who can achieve an annualized rate of 10% are rare.
If you suddenly make 50%, then you have to think more, why are you?
Everyone's earnings revert to the mean.
Don't be arrogant just because you've made money. It's just luck.
For me personally, I'm very satisfied with the 10% APA.
As for how much excess returns can be obtained, this is within the range of unattainable.
It's right to do your own investment conscientiously and do the process in place.
The result will not be bad in the end.
Many people care too much about the result and ignore the process.
In the end, the gains outweigh the losses.
For example, you may care a lot about making money on every trade.
So reluctant to stop loss.
This is to do the process wrong, then you are likely to not get a good result.
Even if you get good results once in a while, you will lose more money in the future because of your lack of discipline.
In a bull market, remember not to be overly greedy!!
Once you have formulated an investment strategy, you can calmly and strictly implement it, and don't let your brain be flooded with emotions!!
3. Don't be afraid to take the elevator
For value investing and long-term investing, taking the elevator is very normal.
We should not shy away from it.
The market is all about torturing you by taking the elevator.
It will surely torment you to take the initiative to sell when it is rising.
And then it magically skyrockets, leaving you behind.
When you think about a problem, you must consider probability and odds.
For example, after we buy at a low level, we patiently wait for the price to return to the mean, and eventually go crazy.
As long as the price is not overvalued, we will hold it.
It will definitely enter the overvalued zone one day.
It's the law!
And if you operate frequently in the fluctuation of the stock price, you want to do a good job in every band.
Do you think about how hard it is?
Most people toss around in the bull market and operate frequently, and only make a little money as a result. (Although the experience is very good)
And when it reaches the top of the bull market, it will be heavily positioned, just under the cover.
Think about it, buy undervalued, wait for the stock price to enter the overvalued sell. Is this difficult?
It's just patience.
Usually we don't have to look at the plate, how relaxed.
And come to the stock market every day to watch the market, trying to do it right on every band.
Is it easy?
Let's compare it.
It's just that the stock price goes up, you don't sell, and the stock price falls back.
You feel the cooked duck flying. I felt extremely uncomfortable.
However, when the stock price did not enter the overvalued zone, the duck was not ripe in the first place.
Beware of diarrhea after eating!!
You'll have to wait for it to get cooked. Isn't it?
Well, that's all I have for you.
Let's think about it, and after the market opens, choose the way that suits you to deal with it.
Investing is a response, not a prediction.
Remember!!!
I've also shared more specific ways to deal with it in the community.
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