Source of this article: Times Weekly Author: Yan Xiaohan
The A-share market has not been so lively for a long time. On September 24, a series of unexpected policy combinations were released, which quickly ignited market enthusiasm. On the same day, the three major A-share indexes rose in volume, with the Shanghai Composite Index closing up 4.15% and returning to 2,800 points, the largest one-day increase since July 6, 2020.
Since then, A-shares have risen one after another, and the Shanghai Composite Index has risen by more than 21% in five trading days. On the last trading day of September, A-shares jumped to the top and ushered in an epic surge - the turnover of the Shanghai and Shenzhen stock markets reached a record high of nearly 2.6 trillion yuan. The Shanghai Composite Index rose more than 8% throughout the day, breaking through 3,200 points shortly after opening, and closing the day at more than 3,300 points.
Enthusiasm spreads everywhere. During the National Day, major brokerages "closed the market without vacation", working overtime to open accounts, and welcoming new shareholders to enter. October 8, the first trading day after the National Day holiday. On the same day, A-shares were still rising, and the major stock indexes opened with a collective surge, among which the Shanghai Composite Index and the CSI 300 both recorded the largest opening gains since 2000.
There are no absolutes in the stock market, and there is no eternity in the rise. On October 9, A-shares pulled back sharply, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index closing down. On October 10, the three major A-share indices fluctuated widely. On October 11, the Shanghai Composite Index fell more than 3% at the end of the session, losing 3,200 points. The Shanghai and Shenzhen stock exchanges traded 1.57 trillion yuan throughout the day, a sharp drop of more than 570 billion yuan from the previous trading day. On the same day, 442 stocks in the A-share market rose, 51 stocks rose to the limit, and 4,862 stocks closed down.
Source: Picture Worm Creative
Nothing new under the sun. This wave of rise, which began on September 24, was referred to as the "924 market" by stockholders. They hope that this time, as it did 25 years ago, will continue to evolve. On May 19, 1999, A-shares started a vigorous "519 market". It was a bull market that lasted for two years. According to the review "519 market" research report released by Zheshang Securities in 2019, the "519 market" was launched on May 19, 1999 and ended on June 14, 2001. The Shanghai Composite Index started from 1057 points and closed at 2245 points, with a cumulative increase of 111.58%.
The only comparable is 2007. In that year, the Shanghai Composite Index started from 2,728 points at the beginning of the year and rose to a record high of 6,124 points on October 15, an increase of more than 100%.
When A-shares were still in the era of the sales department, the crowd gathered in front of the electronic display screen of the sales department, mixed with complaints or ecstatic cries, was the most direct thermometer in the market. Nowadays, the electronic large screen has been fully replaced by the small screen of the brokerage App, and shareholders gather on social media to share their investment experience in WeChat groups and circle of friends. More convenient means of communication have also increased the transmission rate of joy and sorrow to a greater extent. It seems that it is difficult for everyone to completely ignore the market changes in A-shares.
Bulls and bears alternate, and the scenery is lonely and rotten. Facing the same sea, some people are intoxicated by its turbulent turbulence, and some people are alerted to its treacherous and unpredictable. This time, we approached 4 investors up close and listened to their respective stock market investment stories.
The post-70s who hold tens of millions of yuan: "No matter what the situation, shareholders must remain peaceful"
Post-70s, Ning Yi is a veteran shareholder with 18 years of investment experience. More than 10 years ago, when he first entered the stock market, he made a floating profit of millions of yuan, and then quickly turned into a loss of more than 100,000 yuan, and finally decided to cut his meat and leave the market. He has witnessed many bears and bulls, and is now a supporter of Warren Buffett and Munger, pursuing the concept of value investment——
I entered the market in 2006 and experienced the bull market in 2007 and the leveraged bull market in 2015, and the market environment at that time can be described as "thrilling". I wasn't surprised or excited when the market went up this time. Compared to previous bull markets, I don't think this is the most special one.
From a personal point of view, I still hope that it doesn't go up too fast. For retail investors, the best market is a slow bull, where valuation and performance are compatible, and the stock price rises to coincide with the growth of the company's performance, and shareholders can make money for the company's growth. I firmly believe in Warren Buffett's investment philosophy, buying stocks is buying companies, insisting on value investing and holding for a long time.
My position is about 20 million yuan, and I have a floating profit of about 30% since the beginning of this year. After September 24th, my stock holdings rose by more than 10%, and my profit in this market should not be too much, because I am allotted to blue chips, and the stock price usually does not fluctuate much. Of the proportion of my holdings, 30% are allocated to home appliance stocks, and the rest are scattered in sectors such as water and electricity, insurance, etc.
After this rally, I believe that the price of my stock holdings is not to the point of a bubble, and it is still within a reasonable valuation range. So I'm still holding it, and I've added a small amount of some stocks that I've held for many years. If it rises too fast, we must also be vigilant. If the stock price exceeds the company's fair value, it will be overdrawn and a bubble will be created.
Over the years, my investment philosophy has changed a lot. When I first entered the market in 2006, I mainly listened to recommendations from friends. I don't know much about the stock market, I don't know what companies to buy, I don't look at the company's fundamentals, and I don't study the company's performance. But catching up with the big bull market, even if you don't understand anything, you make money.
I remember the bull market before, and the investment atmosphere around me was very excited. Friends are talking about stock trading, what stocks they bought today, and how much money they made today.
Because of the lessons I have learned from the market, my investment style is gradually changing, and 2015 is the turning point. It was also in this year that I really started making money.
In the first half of that year, the Shanghai Composite Index continued to rise, and I sold it when it was more than 4,000 points, and then it rose to more than 5,100 points. At the time, I was a little remorseful, I could have made more. That's human nature. In the bull market of 2015, how did it go up and how did it fall back, and many people suffered heavy losses.
In the past, I was very aggressive at times, but now I believe in value investing. As long as I know the company, even if the stock price falls, I won't panic. I can confirm that this may just be an ordinary swing. I can also grasp the timing of buying and selling, for example, I can buy if it falls too much, and I can sell if it goes up too high.
Now, before I buy a stock, I research the company's fundamentals, its position in the industry, its profitability, annual dividends, etc. To sum up, I believe that investment is a long process, and no matter what the circumstances, investors should remain calm and firm, and cannot speculate in the short term.
Source: Picture Worm Creative
8-year-old stockholders: "Stock speculation is a very test of mentality"
Liu Feng is also an old shareholder, who entered the market in 2016 and also had an aggressive investment stage. Soon, he ushered in two sharp fluctuations in the stock market. He also gradually became a conservative. Restraint reduces risk and sometimes means missed opportunities. When the market came this time, he waited and waited for a few days before choosing to cover his position, but he missed the best time. Now, he sees stock trading as a video game for the joy of life -
I opened my account in 2016 and started with an aggressive investment strategy. Now, I'm the restrained conservative type. I had a sharp loss in the previous two years, so when the stock market rallied this time, I didn't act immediately, which also caused me to miss the best time to increase my position.
I was unimpressed when it started rising on September 24, and then it continued to rise for a few more days. Seeing the people around me making money, I also blushed. On September 30, I made up a little bit of each of the stocks I held, and the profit on the position was less than 20%, and I quickly sold it.
The stock market is also a reaction of emotions, and everyone wants to come in when they see the money-making effect. I used to hold very few positions, and then I chased the funds in. When the stock market first went up, I wondered how long the rally would last. After understanding the specific policies, I think it may not be a big bull market, but it will have a certain stimulus effect.
After that, I observed that the stock market was still going up, and I wanted to buy a little more. On October 8, I had a profit, which led to a more optimistic expectation and continued to increase my position. On October 9th, I couldn't help but make up for the position, and it fell sharply on the same day, and the money I earned was lost again.
Before the National Day, my position was profitable as a whole, but there was a floating loss on October 9. Now, I can only stand still and see the follow-up market trend before deciding.
I am more cautious and restrained, which is reflected in all aspects of stock trading, for example, the money placed in the stock market is only 20%-30% of the deposit, and it will never exceed half, and I will never use leverage. Before buying a stock, I will repeatedly weigh it, first spend more than ten days observing the company's stock price trend, understand the fundamentals and other information before deciding whether to buy it.
Stock trading is a very mental test, and you must consider whether you can withstand large fluctuations and accept the gap. The big ups and downs are painful. When the real estate stock crashed before, I lost half of it in a week. Since then, I haven't touched real estate stocks again. This time the real estate stocks collectively exploded, and the income of some friends tripled, but I basically didn't have a position in real estate stocks, so I didn't catch up.
When you see others making a lot of money, you are often tempted, and people will choose a style of play that is not suitable for them because of impulse. If there is a loss, the mentality will collapse immediately.
I think the two most painful points of stock speculation: one is that it is expensive to buy by yourself, although you recognize the stock, but buy it at a high point, wait for the return of capital every day, and return to the capital has become the highest pursuit; The other is whether to sell or not after the stock rises? After selling, there is no better target to buy; If you don't sell, it's always just a floating profit, just a number.
My attitude towards stock trading has also changed, and I will see it as a joy of life or as a video game. This has increased my awareness of myself, and I will continue to explore more suitable ways to operate in the process.
Newcomer to the Running Entrance: "My dad wants me to exercise a calm mind"
Before this market, Xiaofei didn't know anything about the stock market. Bombarded with advice from her father and information about the stock market, she ran to the market. From learning to open an account, to selecting stocks and buying stocks, nervousness, excitement, panic, anxiety, and all kinds of emotions are intertwined, Xiaofei has experienced unprecedented novelty-
I was born in the millennium, and now I work in a university, so I should belong to the wave of people who run and enter.
On September 30th, I just opened an account, and it was a holiday soon, so I couldn't trade. On October 8, I invested 20,000 yuan, and I made a floating profit of 50 yuan on the same day. On October 8th, my pickled stocks were mostly up. On October 9th, half of the self-selected stocks were green, but they still made a floating profit of more than 1,000 yuan, and I took advantage of the situation.
On the morning of October 10th, although it was green, I still had a glimmer of hope that it would be profitable overall, and I even increased my position in the morning; In the afternoon, when I saw that the account had lost 1,600 yuan a day, I lay flat. On October 11th, as soon as I opened the trading software, it showed a floating loss of 1,200 yuan, which was about 2 percentage points lower than when I bought. At present, my total loss is about 200 yuan, which is quite acceptable.
Stock trading has been very exciting these days, but my gains and losses are not so serious. The money for stock trading was given by my father, and my mentality was that even if I lost, I wouldn't be very distressed.
Source: Picture Worm Creative
Before, my dad saw that the market was good, and gave me 20,000 yuan on September 20 to learn how to trade stocks. He didn't have any special instructions and suggestions, only said that he should be optimistic about the sector, choose one or two stocks that he thinks are good, and then hold them patiently. My dad didn't expect me to make money by trading stocks, but wanted me to exercise a calm mind.
At first, I didn't take stock trading seriously, and I wasn't interested in it either, and I didn't know much about it. My dad started trading stocks in 2007 and has also experienced a big bull market. In the last ten years, he should have lost money. I subconsciously felt that it was difficult to speculate in stocks, so I didn't rush to open an account.
At the end of September, the favorable policy was introduced, and when I saw the screenshots of the income shared by everyone, I couldn't hold back it and opened an account quickly. I can finally buy stocks after the holiday, but I don't even know the most basic operations.
When I actually bought stocks, I was very nervous. On October 8, many stocks opened with a daily limit, and I was worried that I would not be able to buy them. After entering the stock market, my emotions also fluctuated greatly with the stock price trend. When it fell, I panicked. But the hardest part is not the loss, but the regret that I didn't buy at a lower point.
Post-00s after 6 years of stock trading: "Before the bag is settled, the income is just a number"
Xiaobei is a post-00s generation who likes to explore new things and love adventure. In 2018, Xiaobei just went to college and was only 18 years old. This year, he began to learn to trade stocks. Perhaps it was luck, in just 3 months, the income doubled. Xiaobei used to think that stock speculation makes money quickly. Even after a long bear market, he has good returns. After graduating from college last year, he entered the workplace as a part-time worker and began to think about money in a new way-
I have been trading stocks for 6 years, and the A-share market has not improved much. In the past few days, I have witnessed the history of A-shares. Early in the morning of September 27, a colleague in the office asked loudly, "What do you want to drink today?" I'm in for a treat! "I know he must have made some money in this stock market run. On the afternoon of September 30, I drank three or four cups of milk tea invited by my colleagues. The market before the National Day made me and my colleagues very excited.
From September 24th to September 30th, A-shares experienced a seven-day carnival, colleagues around them were discussing the stock market, and even the cleaning aunt was paying attention to the news. Previously, the stock market had been in a downturn for a long time, and many of my colleagues were old stockholders. This rise has a feeling of a long drought and a rainy day for everyone, and the atmosphere in the office is very good and the mood is extremely exciting in those days.
I also have good gains in this wave of market. Before the National Day, I had a total of almost 1 million yuan in principal, and since September 24, I have been able to earn more than 100,000 yuan every day. But I didn't increase my position, and even reduced it on the last trading day before the National Day holiday. I think I already have a good income, I can't be too greedy, I just want to buy a car, so I took out 400,000 yuan.
Frankly, I'm also very tempted by the temptation of the stock market going up. At the beginning of this market, I was relatively calm, but I didn't expect the rally to continue, and on the fourth or fifth day, I began to sit still, and the idea of increasing my position became more and more intense, and my mind was full of "less profit is more uncomfortable than loss".
My parents' advice brought me back to my senses, and they advised not to put all your money in the stock market, and the bottom line of stock trading is that even if you lose all the money in the stock market, it will not have much impact on your life and mentality.
Their advice was right, and my holdings soon began to fall, and they fell hard. On October 8 and October 9, within two trading days, more than 100,000 yuan evaporated from my account.
On October 9, only a few securities stocks in my self-selected stocks performed okay, but a few consumer stocks were in "free fall", and the account lost more than 70,000 yuan a day. Although it is uncomfortable, I think that the loss is also the money I made before, and I think it is acceptable.
I was trading stocks for a long time, and it was related to my school experience. At that time, I was studying in a business school abroad, and the project practice required me to follow up on a stock and analyze its trend. I thought I'd do it since I wanted to do it, so my dad gave me 100,000 yuan to try it out.
At that time, I chose companies that were more relevant to my life and I could see changes in my life. I have a certain understanding of the basic rules of the stock market, through the analysis of the company's fundamentals, look at its price-earnings ratio, liquidity, accounts payable to understand the company, and then look at the stock bar, forum to see the evaluation of shareholders.
I entered the market at a good time and with good luck, I encountered a few price limits. In the first year of stock trading, my principal doubled in three months. Of course I think I'm amazing. At that time, I was young, I felt that the money came quickly, and the money I made was very floating, and I often invited guests to dinner.
Around 2019 to 2020, I added another 200,000 yuan, and in 2021, I judged that the economy would definitely improve, so I added another 300,000 yuan, and the principal was 600,000 yuan at that time, and then I increased my position one after another, until it reached 1 million yuan.
In February this year, the Shanghai Composite Index fell below 2,700 points, and I lost 270,000 yuan. At that time, I was already in a mess, I no longer looked at stocks, and I even felt that there was no hope of recovering my capital. Although I also made money from this big rise, I didn't expect too much. I communicated with my classmates who work in brokerages, and he also felt that the fundamentals have not changed now, and more people's emotions have been mobilized.
I didn't think I was going to make money on stocks, so I bought stocks that were stable. When I was in school, I didn't have a strong sense of money, and the concept was very vague, so I was more aggressive in stock trading; After I went to work, I knew that making money was not easy, and my view of money was changing.
I've become a risk-averse stockholder, holding a stock for a long time and exiting the stock if the expected return is achieved. Because before the bag is settled, the benefits are just numbers.
(The above narrators have been pseudonyms)