This is a return of 80% of the true meaning of the stock market
If you want to do a good job in stocks, you must enrich your stock knowledge. Let's talk about the true meaning of 80% return.
A friend has been practicing for more than six years since he entered the stock market. At first, he was always losing money and was always led by the main force by the nose. He was very unconvinced and held his teeth tight. After entering the third year, I finally realized the true meaning of stock speculation. Since then, his annual return rate has been more than 80%, including the bear market in previous years. If you want to ask him the secret of making a profit, it's very simple to say, just the following:
Adhere to long-term investment
From the perspective of long-term development, the overall trend of the stock market is always upward. As long as the fundamentals of any stock are relatively good, the scale of its share capital is bound to be larger and larger.
Take the history of the development of American stock market as an example. From 1925 to 1975, the share capital of large cap stocks increased by 1113 times, while that of small cap stocks increased by 3822 times.
In China, the scale of equity expansion is also staggering. Therefore, as long as the stock you choose is not a hopeless junk stock that may be delisted at any time, then, after buying it, you can rest assured to hold it and make medium and long-term investment, and the future income will not be too bad. Of course, the medium and long-term investment referred to here is not to hold on to the high price and not to speculate in the short term.
The price should be moderate or low
This experience is fully understandable, low price stocks are easy to double. Of course, the stock price is not small and medium-sized retail investors can control, therefore, do not expect to buy the lowest price, in fact, it is impossible to buy the lowest price, as long as the price is not too high, you can consider buying.
Don't exchange shares easily
The stock market often turns. If a stock whose fundamentals are not too bad and its price is not too high, its share price is likely to rise again after falling or adjusting for a period of time. After buying a good quality low price stock, be patient. As long as the original reason for buying has not completely disappeared, do not throw it away easily. Practical experience shows that the reason why a stock does not rise temporarily may be due to the following reasons:
1. Maybe the price adjustment is not really in place;
2. It is possible that the time of horizontal trading is not long enough and the consolidation is not over yet;
3. Maybe the main force has not collected enough chips;
4. It may be forgotten temporarily;
5. It may not conform to the current market theme and mainstream.
However, the situation of the stock market is often like this. When people look down on a certain stock, the main force will start to act. After they have a low price, the strong speculation will start. Moreover, at the end of the rising trend, the profits are the most abundant. Therefore, investors should seize the opportunity and firmly hold shares.
Market behavior determines everything
Stock speculation is a kind of market trading behavior. The market behavior ultimately needs to be determined by the market. In the face of market behavior, a person's power is very small.
Practical experience shows that stock market does not need too much wisdom. The reason why most of them become stock elites is that they are good at continuous learning, dare to believe in themselves, and establish their own relatively fixed style of speculation, as well as a set of simple and practical speculation principles, and resolutely implement their own discipline, which makes them become the elite stock speculators.