Using Strategy To Beat "Three Fears" In Stock Market Investment

Looking back at the ups and downs of the securities market in the past twenty years, it is difficult for most of the individual investors who are always active in the market to get rid of the shadow of "three fears" regardless of their rich experience and painful lessons.

The so-called "three fears", the first fear of "hold up".

The money of individual investors is not "worldly possessions", so almost everyone is afraid of losing money, and second is afraid of "going to the ground".

Since the idea that everyone else has made a profit even if they lose money, they have been deeply rooted in the hearts of the people.

People who do not lose money or have no time to walk seem to have no regrets.

In fact, there are three kinds of market trends: unilateral.

Strategies for preventing "three fears"

To avoid this "three fears" in the investment process, we need to stress some investment strategies.

Although the appropriate investment strategy can not let investors fight all the time, at least we can know what we know and win.

In my view, investment strategies can be viewed from three perspectives.

One is to choose the market, that is, to determine the allocation ratio of assets in different markets; the two is the "selection method", that is, to choose the mode of investment in a single market, usually between the active investment and passive investment; and the three is to choose the opportunity, that is to choose the opportunity to enter the investment, including batch or one-time investment.

Looking at these three perspectives, it is no doubt that the "right way" is the key to the domestic securities market.

First, because the domestic real economy, as a pillar of the stock market, is still in the new stage of pition, which has created the characteristics of short economic cycle and rapid industrial pformation. In particular, investors need to adjust their investment patterns frequently and switch their investment targets in order to adapt to market changes.

Second, in the domestic stock market, whether it is a listed company as a market entity or a participant in the market, it is difficult to compare with the mature market abroad, which objectively results in the short term hot switch in the market and the weak long-term investment effect.

This requires investors to abandon some investment strategies, such as "long-term indexed investment", which are effective in overseas markets to adapt to the "Chinese characteristics" of the domestic market.

"Active investment" to win

So how should we choose to invest in different periods of the market? What kind of investment strategy should we take in the economic recovery stage?

For investors, investment patterns are mainly divided into active investment and passive investment.

The former is that investors build their own portfolios and achieve the goal of defeating the index by choosing stock portfolios.

This kind of investment strategy is more effective in the unilateral falling market and the shock market. In such a market, the relative earning space of individual stock is larger than the index.

Investors can often achieve the goal of "resisting fall" and "winning index" by choosing the right industry; on the contrary, passive investment is the purpose of investors to achieve tracking index by buying index products and synchronizing with big cities.

This investment strategy is often used in the unilateral bull market to fight against the big enemy of "not running the index" to ensure that the average revenue of the market is achieved.

Therefore, if we want to determine whether the future economic recovery is active or passive, the key lies in judging which index and high quality stock portfolio have larger relative income space.

First of all, from the perspective of the real economy, it is easier to win the initiative investment in the future.

Economic recovery is different from economic prosperity, it is difficult to produce a whole industry development situation.

Due to factors such as mobility, strategic orientation and resource allocation, there is a recovery in all industries.

At the same time, in the post economic crisis era, economic recovery is bound to be accompanied by industrial restructuring.

The investment value of enterprises with backward industries and overcapacity will be greatly reduced.

Therefore, the market proceeds will come more from the theme industry and high quality enterprises, and the market will always present structural investment opportunities. At this time, a good grasp of asset allocation strategy and industry rotation strategy will become the key to winning the investment.

Secondly, from the market mentality, the return space of index is relatively within a certain range.

From historical experience, market participants tend to take the historical comparison between index and economy as the main basis for measuring investment value.

For example, when the Shanghai composite index reaches four thousand points, if the profitability of the company does not reach the level of four thousand in 2007, investors will think that the market will be overvalued and the liquidity will be withdrawn.

On the contrary, if the index rises slowly along with the economic recovery, stocks will be fully active with thematic investment, which will be neither fluidity nor market investment desire.

Therefore, in the context of the current economic recovery, the Shanghai Composite Index has been in the three thousand place after a rapid rise. No matter from the wishes of the participants or the investment behavior of the participants, the index tends to show a wide range of shocks, while the excellent growth stocks still have room for improvement.

Of course, even when the era of active investment is coming, it does not mean that everyone is suitable for active investment.

As a personal investor, if we lack confidence, time and experience, it is still a suitable investment strategy to choose a long-term passive index investment in the era of active investment.

After all, "synchronizing with the index" or creating a detached investment mentality.

If you choose to invest actively, then as an individual investor, you can pay more attention to the industry rotation opportunities brought about by policies and economic recovery. At the same time, you can also use the professional investment management institutions such as funds, brokerages and trusts to build a portfolio of theme investments to get excess returns relative to the index.

Although it is not always a hundred test larks, to resolve "three fears", but it has the opportunity to win the strategy in the market, and operate freely.