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$Tesla (TSLA.US)$
$FULU HOLDINGS (02101.HK)$
$Microsoft (MSFT.US)$
$Apple (AAPL.US)$
Peter Lynch, I believe everyone is familiar with this name. Here is a trade from his investment career that I saw him describe in a video by a vlogger.
In 1972, the stock market experienced a significant pullback similar to the current one. The stock of Taco Bell, a chain of restaurants, dropped from $14 to $1. A plummet of 93%. However, Peter believed that Taco Bell was a high-quality company because they were continuously opening new restaurants and had no debt. So, when the stock plummeted from $14 to $7, Peter started buying at the bottom. It was obvious that he caught a falling knife. But instead of panicking when it continued to decline, he not only held his position but also added more when it dropped to $1. Then, in 1978, six years later, Taco Bell was his largest holding. However, it was also in this year that Taco Bell was acquired by PepsiCo at a price of $42 per share. In six years, the stock skyrocketed from $1 to $42.
Blogger's summary:
1. No one can accurately buy at the bottom, even the great guru has times when he catches a falling knife. So this also tells us that when we buy at the bottom, if it continues to fall, we don't need to worry too much. As long as we have conducted a comprehensive due diligence and confirmed that its true value is far higher than its current position, we can continue to hold or buy more.
2. You must have a strong belief in the company you are investing in, which must be based on a deep understanding and the premise that you have determined its true value is much higher than the current price.
After watching this video, I fully agree with the blogger's viewpoint. However, this viewpoint and approach are not suitable for me. The reasons are as follows:
I don't know what kind of due diligence is qualified. I don't even know how to do due diligence for a stock.
I don't have the relatively strong financial support like Peter to buy from 7 yuan all the way to 1 yuan in 6 years and make it my largest position.
I have been in the market for a short time, not even half of 6 years. Even if I think I have a big heart, I am still not sure if I will have the strong belief like Peter to persist in completing this wave of "smile curve".
I am very fortunate to have met a technical blogger half a year ago. Watching him grow from less than 0.01 million subscriptions to over 0.05 million, although not a top-tier video blogger in terms of subscriptions, I still haven't even scratched the surface of his technical theories, techniques, and trading logic.
His theory of stop loss and take profit is highly compatible with my current capital, my trading style, and my mindset. Timely stop loss and take profit can make my account more "refreshing" and allow me to approach trading with a calm mind without succumbing to FOMO or making impulsive decisions.
I'm willing to watch his "ultimate technical analysis of US stocks and experience the joy of speculative earnings."
Do you know what the secret key is, smart person?👆
$FULU HOLDINGS (02101.HK)$
$Microsoft (MSFT.US)$
$Apple (AAPL.US)$
Peter Lynch, I believe everyone is familiar with this name. Here is a trade from his investment career that I saw him describe in a video by a vlogger.
In 1972, the stock market experienced a significant pullback similar to the current one. The stock of Taco Bell, a chain of restaurants, dropped from $14 to $1. A plummet of 93%. However, Peter believed that Taco Bell was a high-quality company because they were continuously opening new restaurants and had no debt. So, when the stock plummeted from $14 to $7, Peter started buying at the bottom. It was obvious that he caught a falling knife. But instead of panicking when it continued to decline, he not only held his position but also added more when it dropped to $1. Then, in 1978, six years later, Taco Bell was his largest holding. However, it was also in this year that Taco Bell was acquired by PepsiCo at a price of $42 per share. In six years, the stock skyrocketed from $1 to $42.
Blogger's summary:
1. No one can accurately buy at the bottom, even the great guru has times when he catches a falling knife. So this also tells us that when we buy at the bottom, if it continues to fall, we don't need to worry too much. As long as we have conducted a comprehensive due diligence and confirmed that its true value is far higher than its current position, we can continue to hold or buy more.
2. You must have a strong belief in the company you are investing in, which must be based on a deep understanding and the premise that you have determined its true value is much higher than the current price.
After watching this video, I fully agree with the blogger's viewpoint. However, this viewpoint and approach are not suitable for me. The reasons are as follows:
I don't know what kind of due diligence is qualified. I don't even know how to do due diligence for a stock.
I don't have the relatively strong financial support like Peter to buy from 7 yuan all the way to 1 yuan in 6 years and make it my largest position.
I have been in the market for a short time, not even half of 6 years. Even if I think I have a big heart, I am still not sure if I will have the strong belief like Peter to persist in completing this wave of "smile curve".
I am very fortunate to have met a technical blogger half a year ago. Watching him grow from less than 0.01 million subscriptions to over 0.05 million, although not a top-tier video blogger in terms of subscriptions, I still haven't even scratched the surface of his technical theories, techniques, and trading logic.
His theory of stop loss and take profit is highly compatible with my current capital, my trading style, and my mindset. Timely stop loss and take profit can make my account more "refreshing" and allow me to approach trading with a calm mind without succumbing to FOMO or making impulsive decisions.
I'm willing to watch his "ultimate technical analysis of US stocks and experience the joy of speculative earnings."
Do you know what the secret key is, smart person?👆
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Freide : The key, of course, is to study hard and read the analysis disk.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Thanks to the prettiest wolf in the tubing, I have learned a lot over the past six months.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Mr RayLiang : Everyone should study and build own trading system. That is for long run.
71741440 : Thank you for sharing.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")