Sharing some insights and experiences.
First: Do short-term trading.
The most common one is buying low and selling high quickly, making a profit from the difference, which is called short-term trading. This can be divided into two types:
1. Buying at relatively low levels and selling at relatively high levels, which most people are willing to accept and is a relatively safe approach. This approach focuses more on fundamental analysis of the company, finding undervalued stocks to buy at low levels and selling at high levels. It requires eyesight and patience.
2. Buying at high levels and selling at even higher levels, such as chasing the daily limit. Many friends on Taoguba adopt this method. This method requires good technical skills in short-term trading and a high success rate.
II: Long-term Investment.
The function of the stock market should be to raise funds and use them for companies with good prospects to develop production, promote economic development, and social progress.
From this perspective, the best investment strategy for making money should be to choose industries and companies that are promising and growing, hold them for the long-term, and as time goes on, with the continuous growth and expansion of the company, the market value will increase, leading to wealth accumulation.
The growth experiences of companies such as Vanke, Maotai, Development, Sany Heavy Industry, and Suning Electric all reveal this phenomenon.
If you are lucky enough to recognize these companies and hold them for the long-term, it will be much easier and faster to make money compared to chasing the market every day, trying to catch the rising price limit and profit from it.
If during the time you hold these companies for the long-term, you can buy low and sell high, you will achieve excessive growth in wealth.
The best way to make money is to choose small and medium-sized companies in good industries, with clear growth prospects and located in blue ocean areas, hold them for the long-term, and take advantage of opportunities to buy low and sell high. In this way, achieving a tenfold or twentyfold increase in wealth over three years is very possible.
However, such companies are difficult to find, especially in the current situation, and it is difficult to persist. I myself have switched from long-term holding of stocks to short-term trading.
Everyone should determine the profit model suitable for themselves based on their own situation.
5. Position determines success or failure
In the stock market, the position is a crucial factor. The size of the position is determined according to the position of the large cap and individual stocks. When it is relatively low, take a heavy position, otherwise take a light position or even exit the market.
Good position management, coupled with swing trading, will surely lead to success over time.
The question arises, when is the market at a high position, and when is it at a low position? To be honest, only the institutional investors know. What should we do then? We have to rely on experience. A simple determination is that when the large cap and individual stocks continue to rise, the risk accumulates, indicating a relatively high position.
However, the strong always prevail is the basic principle of the stock market. Losing great stocks due to the above judgment is actually unavoidable, and risk control will inevitably accompany the loss of lucrative opportunities. Mastering the balance depends on each person's luck. Luck is needed in the stock market, this is something we have to admit.
The stock market is one problem after another. After solving one problem, another problem arises, just like the situation mentioned above. Therefore, the stock market is very challenging.
Another important aspect of position management is the issue of the proportion of holding individual stocks. Getting into the market at the right time and buying a bunch of stocks may not make money when the market ends. How many stocks should one buy? It's a matter of finding the right balance.
In my personal experience, it is more suitable to heavily invest in one stock with small to medium-sized capital. Holding a large position in one stock is a necessary condition for high profits. Diversifying positions can reduce risks, but if one stock performs poorly, it can drag down the overall profits.
The most important thing about holding a large position in one stock is to avoid black swan events. The method I use is to always look for stocks that are relatively near their bottom and have relative value when I decide to heavily invest. Instead of choosing black swans, I choose ugly ducklings to heavily invest in. By not choosing swans, the concept of black swan no longer exists.
The most common one is buying low and selling high quickly, making a profit from the difference, which is called short-term trading. This can be divided into two types:
1. Buying at relatively low levels and selling at relatively high levels, which most people are willing to accept and is a relatively safe approach. This approach focuses more on fundamental analysis of the company, finding undervalued stocks to buy at low levels and selling at high levels. It requires eyesight and patience.
2. Buying at high levels and selling at even higher levels, such as chasing the daily limit. Many friends on Taoguba adopt this method. This method requires good technical skills in short-term trading and a high success rate.
II: Long-term Investment.
The function of the stock market should be to raise funds and use them for companies with good prospects to develop production, promote economic development, and social progress.
From this perspective, the best investment strategy for making money should be to choose industries and companies that are promising and growing, hold them for the long-term, and as time goes on, with the continuous growth and expansion of the company, the market value will increase, leading to wealth accumulation.
The growth experiences of companies such as Vanke, Maotai, Development, Sany Heavy Industry, and Suning Electric all reveal this phenomenon.
If you are lucky enough to recognize these companies and hold them for the long-term, it will be much easier and faster to make money compared to chasing the market every day, trying to catch the rising price limit and profit from it.
If during the time you hold these companies for the long-term, you can buy low and sell high, you will achieve excessive growth in wealth.
The best way to make money is to choose small and medium-sized companies in good industries, with clear growth prospects and located in blue ocean areas, hold them for the long-term, and take advantage of opportunities to buy low and sell high. In this way, achieving a tenfold or twentyfold increase in wealth over three years is very possible.
However, such companies are difficult to find, especially in the current situation, and it is difficult to persist. I myself have switched from long-term holding of stocks to short-term trading.
Everyone should determine the profit model suitable for themselves based on their own situation.
5. Position determines success or failure
In the stock market, the position is a crucial factor. The size of the position is determined according to the position of the large cap and individual stocks. When it is relatively low, take a heavy position, otherwise take a light position or even exit the market.
Good position management, coupled with swing trading, will surely lead to success over time.
The question arises, when is the market at a high position, and when is it at a low position? To be honest, only the institutional investors know. What should we do then? We have to rely on experience. A simple determination is that when the large cap and individual stocks continue to rise, the risk accumulates, indicating a relatively high position.
However, the strong always prevail is the basic principle of the stock market. Losing great stocks due to the above judgment is actually unavoidable, and risk control will inevitably accompany the loss of lucrative opportunities. Mastering the balance depends on each person's luck. Luck is needed in the stock market, this is something we have to admit.
The stock market is one problem after another. After solving one problem, another problem arises, just like the situation mentioned above. Therefore, the stock market is very challenging.
Another important aspect of position management is the issue of the proportion of holding individual stocks. Getting into the market at the right time and buying a bunch of stocks may not make money when the market ends. How many stocks should one buy? It's a matter of finding the right balance.
In my personal experience, it is more suitable to heavily invest in one stock with small to medium-sized capital. Holding a large position in one stock is a necessary condition for high profits. Diversifying positions can reduce risks, but if one stock performs poorly, it can drag down the overall profits.
The most important thing about holding a large position in one stock is to avoid black swan events. The method I use is to always look for stocks that are relatively near their bottom and have relative value when I decide to heavily invest. Instead of choosing black swans, I choose ugly ducklings to heavily invest in. By not choosing swans, the concept of black swan no longer exists.
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可不可以 OP : That's all I share. If you have any questions, you can comment in the comments section, or you can trust me privately. I wish you all the stock market Changhong. There are more and better practical information to share at a later stage.
junclj1223 : Ultra-long term is put into retirement, which is called compound interest + time. Short-term people will never understand how a long-term investor like Buffett achieves a compound interest rate of 20% a year.
可不可以 OP junclj1223 : Do you have his strong principal?