Yesterday wrote how happy to speculate in stocks, I did not expect that everyone still loves to see, today continue to work hard, to give you a little more stock speculation.
First of all, we have to be clear, what are we coming to the stock market for? It must be for the sake of making money. Since it is for money, the first priority is the safety of the principal. Otherwise, before you can earn it, the principal will be lost, so why not play. Therefore, before trading, the first consideration is risk, that is, how to try not to lose money. So how to try not to lose money, this is the key to the problem. Next, we will focus on how to reduce the risk of losing money.
A complete trading process is to buy, hold, and sell. But compared with the next two steps, the risk actually comes mainly from buying, and even buying means losing money. Because a lot of people buy just to buy, they don't understand the real meaning of buying. Buying is to show that you know this company in particular, and are extremely optimistic about the future development of this company, rather than not knowing anything, just close your eyes and buy, waiting to make money, that is not self-deception. Because it is impossible for people to earn money beyond their own ability, even if they earn it by luck, sooner or later they will lose it back by strength. So, first of all, you have to buy what you can see and understand, which is closely related to your life, or related to your work, rather than those high-end concepts that are whimsical and you yourself have two eyes and one black eye. For example, you are an ordinary person, working in an electronics factory, and you find that your factory is more efficient than in previous years this year, working a lot of overtime. Then you can go to see which company your factory or the electronic products you produce are, you can try to buy, and there will be a good result. But some people will say, we are oem for Apple, Apple is listed overseas, I can't buy it. This raises another problem, which is that there are no conditions, create conditions. We can search the browser for the domestic fund with the highest proportion of Apple stocks, and then buy it, sometimes with a little brain, many problems are actually not problems. Of course, this is only a relatively simple example, which also involves specific details such as where to buy and how to buy. However, through this simple example, we will find that in fact, there is no lack of opportunities to get rich around everyone, but only a lack of vision to get rich. So next, let's talk about the specific details of buying.
We have discovered some opportunities later through our daily lives and work. In fact, we don't need to rush to buy, we can first observe for a period of time, and then choose the opportunity to buy. After all, a bull market will last for at least three to five years, and there is an opportunity for you to buy. When we observe that the performance of an industry in which you are in has begun to improve for a long time or the price of a product in your life has begun to rise, we can see whether the stock price of the relevant company is at a historical high. If not, and the position is low, then we can start thinking about buying. Some people will say, I don't look at the position, then you will look at the k line no, look at the year k line can be, lower than most of the time can be. In the case of industry improvement and the position is low enough, buying is the focus of the next stage.
Then there's the question of how to buy, which is not just a simple action, but a systematic project. First of all, everyone is not rich, most of them rely on their own wages or deposits to invest. So, for all of us, the best way is to take a zero-save roundup. After we have allocated our funds and set aside the money for daily use, we can buy a part of the rest of the money first, about a month's salary. Then observe if the decline continues, and if it does not fall below the cost line within a month, then continue to buy. If it falls below the cost line, then keep watching and stop buying. Some people will say, the more you fall, the more you buy, the lower the cost. However, if you make a mistake in judgment, the more you fall, the more you buy, which is the source of all evil, because your loss will multiply. Therefore, if after buying the first amount for a period of time, it is still falling, we are just observing and refusing to add positions. Unless it returns to the cost line, you can consider the next step of adding positions, and so on, until you are satisfied with the purchase. If at this time his performance begins to reflect on the financial report, and the stock price begins to rise, we can hold it with peace of mind until the performance reverses, the stock price falls, and the liquidation is gone. But in the process of holding, we are not left with nothing to do, we can use the same method to discover the next goal, so that personal wealth can continue to roll up, rather than putting eggs in a basket.
At the end of the article, I will tell you a very simple truth. The simplest things are often the most difficult, just like investing, as if individuals can do it, but there are few good things in the end. Therefore, instead of thinking about how to take out each other's pockets, it is better to grow with the enterprise, be a friend of time, and earn money for the growth of the enterprise.