In the stock market, confidence is more important than anything else. Without confidence, all possibilities are gone.
Many people say that with 30,000 yuan entering the market, they want to achieve financial freedom. What are they talking about?
Xu Xiang was the one who entered the stock market with 30,000 yuan and became a billionaire-level private equity big shot.
Dropping out of school to trade stocks, he used leverage to borrow 30,000 yuan to enter the market, made tens of millions and then retired. Later, he became a super speculator, managing hundreds of millions of funds.
Bai Mao also entered the market with 30,000 yuan, and his total assets exceeded seven figures very early, and he is working hard towards eight figures.
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Who says that 30,000 yuan cannot achieve financial freedom in the stock market?
Whether you can make money and achieve financial freedom is nothing more than whether the methods are correct and whether you have seen through the capital market.
Although the market is said to have more losses than gains, it does not mean that there is no money to be made.
This is like an exam, only the top students can get good grades and receive awards, which is the same principle.Here is the translation of the provided text into English:
I have a few suggestions for those who harbor dreams.
1. Investment does not necessarily have to be in A-shares; take a look at the US stock market, perhaps there are more opportunities.
Many people think that stock trading is only in A-shares, but in fact, there are many investment channels available now, and investing in the US stock market is also completely feasible.
If nothing else, directly buying a NASDAQ ETF is also a way to participate in the US stock market.
Why do we always talk about stocks as if they are our big A when discussing stocks?
We should have a global perspective, and the current choices are diverse, so don't limit ourselves.
A-shares are recognized as the most difficult stock market in the world; if you can achieve financial freedom in A-shares, then going to the stock markets around the world would be like crazily shearing sheep.
Of course, if you don't understand the global market and invest rashly, it is also not advisable.
2. Timing is always the foundation of investment.
The essence of investment is timing, not stock selection.No matter how good a stock is, if the timing of the purchase is wrong, it will still result in a loss.
No matter how bad a stock is, if the timing of the purchase is right, it can still make money.
Since there is no stock that only rises and never falls, the importance of timing is self-evident.
Timing is not only for individual stocks, but also for the entire market, which will be more effective. Try to choose stocks when the market is at a low point.
And when the market is at a high position and there is a risk, each purchase must be extremely cautious.
3. Understand the cycle, understand the cycle, and make money from fluctuations.
Since the market pays attention to timing, there must be a cyclical nature.
When is it high, when is it low, and how should the wave be done.
Of course, it seems very easy to do the wave by selling high and buying low, but it is actually very difficult to operate.
Because we don't know where the high and low are, so we need to combine the market environment to do a good job of timing analysis.Making money from market fluctuations is a necessity for investors, but the approach must be based on judgment.
Dividing the investment into multiple positions is a wise strategy; putting all your eggs in one basket can easily lead to missing out or being deeply trapped.
Understanding the cycles is a crucial foundation for understanding the trends.
4. High-quality listed companies can weather the bull and bear markets, but ordinary people can't wait that long.
We all know the simple truth that good listed companies will rise in the long term.
But as ordinary people, the difficulty of waiting for a listed company to weather the bull and bear markets is very high.
It can be said that we simply can't wait, nor can we afford to wait.
It's not that there's not enough time, but the time is too long, bringing too many uncertainties.
High-quality listed companies can indeed weather the bull and bear markets, but who can judge whether they will always be of high quality.
What if the listed company fails during the process of weathering the bull and bear markets, then what should be done?Whether it is ultimately worth the wait is the biggest challenge facing value investing.
5. For small capital to double quickly, there is only one way: short-term trend trading.
We all want to make money quickly, turning 30,000 into 300,000, then 3 million, and 30 million.
But increasing tenfold is not that easy, and ten-bagger stocks are not made overnight.
The method that can quickly accumulate profits must be short-term trading.
This short-term trading is not about hitting the board every day, and then buying today and selling tomorrow.
This kind of trading is too frequent and there is no way to do it well.
Short-term trend trading is a better way, selecting stocks by looking at the short-term volume and trend of the stock.
When the volume and price rise simultaneously, the short-term trend comes, and following the trend can seize the opportunity.
6. Strictly control the drawdown, and stopping loss is a kind of wisdom.To accumulate small gains into something substantial, one must avoid significant drawdowns.
If a stock incurs a loss of 30% all at once, it is highly likely to put you in a difficult situation.
Therefore, setting a stop loss for short-term trades is extremely important, and it is better to make a mistake than not to set one at all.
Failing to set a stop loss is not only about the potential to suffer losses, but the bigger issue lies in the long-term occupation of capital.
Strictly controlling drawdowns is a form of wisdom.
Only by controlling drawdowns can we maximize the efficiency of capital utilization and seize the opportunities brought by trends.
Otherwise, when the trend comes, it would be quite embarrassing if the capital is still occupied.
7. Do not set profit targets; preserving the principal is always the top priority.
Investing should not have profit targets, especially when aiming to make a lot of money.
Do not lock yourself into a specific investment philosophy; isn't it good to catch a few stocks with extremely high returns?Buying and selling requires adherence to rules rather than focusing on the amount of return.
Setting a profit target is not a bad thing, but it is best if the profit target is not a percentage, but rather corresponds to the market changes and where the selling point is.
However, there is one thing that must be firmly done, which is to protect the capital.
Profit is the icing on the cake, but protecting the capital is the foundation of staying in the game.
Don't get too excited and be unaware when the elevator is going down.
8. Go with the flow, don't be stubborn, and don't be addicted to gambling.
Don't be stubborn in the stock market.
Paranoid people, if they become inventors, may achieve great success.
But those who like to be stubborn may end up in a complete failure when they go to the stock market.
Persistence and blind persistence are completely different things. In the stock market, you need to be humble, don't be arrogant, and don't be blindly confident.When you are wrong, admit it, instead of always thinking you are right.
There is no way out by obsessing over details; it only leads to a dead end.
Additionally, never approach the market with a gambling mentality, as you simply do not possess the ability to gamble.
Remember that you are a retail investor, and in front of the big players, you are insignificant; do not attempt to fight against overwhelming odds.
9. Financial freedom is the outcome, but taking the process of stock trading seriously is more important.
Financial freedom is the result, not the process itself.
What you pursue in stock trading should not be financial freedom, but rather achieving self-fulfillment in the stock market.
When you can find a stable way to make profits, naturally, you will be able to earn money.
Financial freedom is the inevitable outcome of stable earnings, it's just a matter of time.
When trading stocks, don't always think about the outcome, think more about how to do things, how to make money.In simple terms, doing things well can make money, but doing things well is not that simple.
There are many people who have more time than you, are more professional, have more investment experience, and control more capital, and they cannot guarantee to make money, so what qualifications do you have?
Therefore, taking the time to do your homework is actually a required course, which is the foundation to ensure that you can at least defeat your peers.
10. The mindset is always the most important part of achieving success in the stock market.
In the end, the majority of people fail in the stock market, and if you are not the right material, don't be discouraged.
The mindset is always the core factor for success in the stock market.
There has never been a person with an unstable mindset who has made a lot of money in the stock market.
On the contrary, those investors with an impetuous mindset and great emotional fluctuations every day are almost all losing money.
Without a good mindset, don't mess around in the trading market, otherwise, you are just messing with the money in your pocket.
Financial freedom in the stock market is actually very "childish" because there is always a group of experts who treat the stock market as an ATM.Everyone should carefully consider why they are investing in the stock market.
If financial freedom is the goal and the outcome, then think more about how to make decisions around the goal and how to reach the other side of victory.