Stock Market Investment Makes Money: Understand What Can Not Be Done.

From the impetuous mentality of eager for quick success and instant benefits, catching up and selling down, and getting rid of more and more losses, it is a fast and stable way to go on the mentality and long-term shareholding.

Let's start with what we should not do in actual combat.

When you know what you can't do, you have time to focus on what you should do.

First, say 3 "no".

First, listen to the news and catch up with the trend.

There are two pieces of news. One is the speculation among friends, and the other is the suggestion of market analysts and stock analysts. Two

For the first point, we often hear that some friends have contacts with acquaintances, and then know what companies have the trend of restructuring and takeover. They are generally skeptical, and then see that the K-line is rising again and again, and finally can't resist the temptation to go up in the last rush.

The capital market is free and free of poison.

Buffett said, you have 1 million scrambled insider, you will lose light in a year.

For the second point, it is even more confusing.

Analysts generally equate the prospect of the industry with the benefits of the enterprises, and think that the market prospect is good. You see, the US stock market has fried the gene concept for several years, and has turned over dozens of times. This gene stock must break through, buy or strongly recommend buying.

Analysts are first-class in logic, and the timing is generally recommended when the stock price has risen sharply. Moreover, the evidence ignores the sunken evidence. Giving people a look at it is visionary, logical and reasonable in recommendation.

There are also some analysts who will use the supply school for a while, use Keynes theory for a while, talk to you for a long time, talk to you about the market sentiment, talk about the capital market, and talk about the economic aspects later. Why is he reasonable? In fact, he is a fence sitter. The purpose is to buy stocks, what you buy is your loss, but how to make his theory correct.

The investors who are caught up in this speculative speculation are, on the one hand, lacking the right investment cognition. On the other hand, they have the idea of being intelligent, unearned and windy.

Two, indulge in short term.

There are many problems in it, and it is the most difficult for ordinary investors to jump out.

For example, if a stock is quilt, then the more it will lose, the more funds will be consumed.

For example, if we fall, we panic and sell. The result is a sell up, then a high catch and a fall.

For example, the account bought a mess of many stocks, and sold it up a little, leaving behind the loss of stocks.

For example, the account has bought a stock, and several other stocks have been heavily loaded up.

These short lines or watching the fluctuation of the K-line are inevitably driven by human weakness. The truly excellent investors seldom make use of the fluctuation every day to make investment decisions. Price fluctuation itself is like the influence of the weather on the wave of the sea, unmeasurable and destructive, and standing on the shore, you will be free from injury.

Find the source, want to make quick money, or take the chance to attribute your occasional success to your strength or intuition and forget your failure.

Without introspection, we lose one day, which is the source of the loss of most investors.

In fact, where God helps anyone, it's all on their own.

If you can jump out of your short-term thinking, you will succeed.

Three, competition is better than winning.

Gamblers' mentality, if they fail to believe that they are always bad luck, make a mistake. When the situation is unfavorable, especially when they are irrational, they increase the stakes and increase the number of bets. This is a very destructive practice.

Sometimes it is very unreasonable to know which stocks can not take and which stocks can take, and they are rebellious.

Not only the above three points, but also some other mistakes which I have made more or less, but these are the big mistakes.

To overcome these problems, we can enter the stage of rational investment.

3 more points.

First, careful stock selection.

What is good stock? The first is good companies, and the second is good prices.

There are many ways to choose good companies. I choose companies that go downwind and do not choose companies that are against the trend.

Companies that are likely to be in the opposite direction, such as those with cyclical industries, are more profitable, but more risky.

The difficulty of sailing against the current is several times as many times as possible, and the risk is too great.

It is better to choose a fast growing industry which is chaotic and orderly and stable, and the inherent conditions of the blue chip stocks are available. As long as the leading companies do not make mistakes, they will stand out from time to time and benefit from the development of the industry. This is an excellent investment target.

As for industry, stability, or recession in the early stages of development,

It is hard for companies to work hard to maintain their current profits and expect to create more value. Companies who invest in such companies will always worry about accidents.

Two phase comparison, emerging industry growth stocks surprises you from time to time, the old economic and industrial stocks occasionally give you panic, investing in which stocks is self-evident.

Let's talk about price.

Any business must have a reasonable price to do, otherwise it is not investment to create value, but to destroy the value.

My p / E ratio to the media, environmental protection and new energy industries is less than 30 times, and the growth rate is more than 30%. Because of the long business cycle, the medical price earnings ratio is below 40 times, and the growth rate also requires more than 30%.

At present, I am afraid to invest in new energy vehicles, gene sequencing, and VR/AR industries. The reason is that the P / E ratio is too high.

Low price earnings ratio stocks may lose big bull stocks, but it makes my investment very safe. This is the most important thing.

Two, focus on long-term holding.

Buffett said that if you buy a stock and do not plan to hold it for ten years, do not hold it for one day.

It doesn't always take ten years, but you need patience and determination, such as war. If you want to fight quickly, don't start the war lightly, because once you make a decision, you can't control the situation easily.

So holding a stock, the intrinsic value of this stock is benefited from the growth in the same industry, and the rate of return on capital is also the highest stock, so it is unnecessary to take some second shares. If we worry about the black swan, then the probability of a basket problem is several times smaller than that of many baskets.

And the key is only long-term.

It's the weighing machine. The earnings of the blue chip stocks can beat the stock and market index a little bit.

It can not be held for a long time. The profit from the increase of the market value of the business is not enough to eat. Occasionally, several times of large meals (daily limit) can not be eaten as fat. Only those who eat enough nutritious food every day can be rich.

The more clearly we know about the intrinsic value of stocks, the more confident we will be able to hold the price fluctuation and win the absolute return.

Absolute return is the bottom line for investment.

For me, losing any investment is an unforgivable mistake.

Studying the intrinsic value of an enterprise is not to focus on short-term business fluctuations, but to look at industry trends, enterprise strategies, business performance, and corporate financial status.

These things do not deviate from expectations, they always have confidence.

Besides stocks, you need to have fun in life.

It is boring and boring. It is an ancient well without waves. The joy of life is in other places, such as reading, standing on the river of history. You can see a person in the year or ten years as a unit to judge a person, so as to understand the general trend of the times.

For example, most people think that the king of Qi Xuan is dodged, and Qi Wang Mingzhi is actually a supernatural being. The former is the Warring States hegemony and created the school of Xia Xia.

It is in this idiom that whoever is taller and who can see clearly.

It was more than a snake like snake. The people who had filled it didn't drink the wine of the game. We laughed at him, but he didn't know that he became a court painter. He drank wine every day.

In the Internet era, products or services that are refined should not be contended for a short time.

It comes from the heart.

There is no heart, no heart.

Investment is the same as any undertaking, and the internal quality is not enough, so it is impossible to achieve outstanding results.