Phronesis
Active member
In the investment market, the more retail investors want to make money in the stock market, the harder it is to make money. After all, the future is unknown and difficult to predict. Therefore, investors should invest rationally, just as they often use investment strategies when investing.
The experience of successful people tells us that large profits and long-term survival in the stock market must be lonely value diggers rather than hot chasers. Investors should always warn yourself to speculate in stocks .
Because hot stocks generally have a lot of eyes on them, its hidden value has already been tapped, which is reflected in the serious overdraft of stock prices. Hot stocks will always rise quickly and rise far beyond their own valuation. In addition, when the performance of the company's fundamentals is basically difficult to support the continued growth of the stock price, if it is slightly turbulent or not as expected, its decline will be as fast as its rise. If you do not sell immediately, your profit will be Soon it shrank, and even those who chased the higher not only lost profits but also turned into losses. So retail investors should be like successful investors, avoid chasing highs, and look for undervalued high -quality stocks. So how can this be done?
1. Learn more investment techniques.
If you do not learn technology, then you may not know how to judge the trend of stock price development when trading stocks. So in the stock market, using various indicators to judge the trend of stock price development is actually stock trading technology.
Second, understand the meaning of the economic cycle.
The stocks of companies in different industries have different market performances at different stages of the economic cycle. Some companies are extremely sensitive to the impact of economic cycle changes. When the economy is booming, the company's business develops quickly and its profits are extremely rich; on the contrary, when the economy is in recession, its performance also drops significantly. The other types of companies are less affected by economic prosperity or recession. During the prosperity period, their profits will not increase significantly, and there is no significant decrease in the recession period. It may even be better. Therefore, in the economic boom period, investors are better to choose the former type of stocks; and when the economy is in recession or recession, it is better to choose the latter type of stocks.
3. Develop your own ability to select stocks.
Buffett never invested in high-tech stocks because he said he didn't understand. Although a simple answer, it actually contains great wisdom. Because the ability to truly select stocks is not to go to the stock market, but to stick personal investment to a company whose ability can be understood.
The experience of successful people tells us that large profits and long-term survival in the stock market must be lonely value diggers rather than hot chasers. Investors should always warn yourself to speculate in stocks .
Because hot stocks generally have a lot of eyes on them, its hidden value has already been tapped, which is reflected in the serious overdraft of stock prices. Hot stocks will always rise quickly and rise far beyond their own valuation. In addition, when the performance of the company's fundamentals is basically difficult to support the continued growth of the stock price, if it is slightly turbulent or not as expected, its decline will be as fast as its rise. If you do not sell immediately, your profit will be Soon it shrank, and even those who chased the higher not only lost profits but also turned into losses. So retail investors should be like successful investors, avoid chasing highs, and look for undervalued high -quality stocks. So how can this be done?
1. Learn more investment techniques.
If you do not learn technology, then you may not know how to judge the trend of stock price development when trading stocks. So in the stock market, using various indicators to judge the trend of stock price development is actually stock trading technology.
Second, understand the meaning of the economic cycle.
The stocks of companies in different industries have different market performances at different stages of the economic cycle. Some companies are extremely sensitive to the impact of economic cycle changes. When the economy is booming, the company's business develops quickly and its profits are extremely rich; on the contrary, when the economy is in recession, its performance also drops significantly. The other types of companies are less affected by economic prosperity or recession. During the prosperity period, their profits will not increase significantly, and there is no significant decrease in the recession period. It may even be better. Therefore, in the economic boom period, investors are better to choose the former type of stocks; and when the economy is in recession or recession, it is better to choose the latter type of stocks.
3. Develop your own ability to select stocks.
Buffett never invested in high-tech stocks because he said he didn't understand. Although a simple answer, it actually contains great wisdom. Because the ability to truly select stocks is not to go to the stock market, but to stick personal investment to a company whose ability can be understood.