Let's talk about those really simple stock trading methods.

  • 2024-07-16
  • 47

It is often said that stock trading is very difficult. To make money in the stock market is quite an effort.

How to buy, how to lose, it's not easy to make a little, and it's lost again in a few days.

The essential reason for this phenomenon is that most investors are crowded in the fast lane, hoping to make money through gambling.

That is, most investors hope to make money through short-term fluctuations.

There are many cars on the fast lane, and at this time, the difference between good and bad cars is very big.

Most retail investors drive training cars, that is, cars for beginners. The speed is not only slow, but also prone to traffic accidents.

Advertisement

Speculators, main forces, and institutions on the fast lane are driving giant trucks, with large volume, very stable, and safer.

This is like retail investors gambling with large funds in the short line, the chances of winning are almost zero.

Those operations that rise after buying in the short line are mostly just standing on the same side as the main force.

It is really too difficult for retail investors to continue overtaking on the fast lane.Translate the following passage into English:

Unless one has exceptional driving skills, otherwise, traffic accidents are bound to be frequent.

We are all unwilling to become wealthy slowly, but those who become wealthy slowly are the true winners.

Because on the slow track to success, there are few competitors, only companions.

Many people, when they mention becoming wealthy slowly, must think of value investing.

But essentially, the investment on the slow track is not just value investing, but more inclined towards cyclical investments.

Hold long-term on those that are optimistic about, and discard those that are not.

The so-called value investment is actually just holding high-quality listed companies in stages.

There are many ways to become wealthy slowly, which makes investing simpler, but the cycle will be extended.

It's not that money is earned less, but it is earned a bit slower.

One must learn to move forward on a track that is not crowded, and understand that the great way is simple.The money that can be made in the stock market essentially comes in two forms: one is called dividends, and the other is called the price difference.

So-called value investing is actually also about making money from the rise in stock prices, with the price difference being the main factor.

Because of long-term holding, there will definitely be dividends, so one can also enjoy the money from dividends.

Combining the two, it is referred to as value investing by everyone.

If we set aside this perspective and look at it from the bottom up, the simplest way to make money is just two weeks.

The first method is to receive dividends.

Look for stocks with high dividend yields to buy, and then just wait for the dividends.

There are still quite a few stocks with dividend yields exceeding 5% in the market.

The key point is that most of them have stable performance and regular dividends.Especially for the bank stocks led by the four major banks, dividends have never been less.

Even if there are some stages where the trend of bank stocks is not very good, it does not affect the dividends at all.

Long-term holders of bank stocks have almost all made money, and the stock prices of banks are slowly rising.

There are also some high dividend stocks that have been rising all the way, lasting for decades, and the actual annualized return is far more than 10%.

Taking dividends on the slow lane is actually a very comfortable way of stock trading, and you can see money every year.

Don't care about the book value, because no matter how much the book value is, it will not affect the dividends.

What affects the amount of dividends is the net profit of the listed company, whether there is a certain fluctuation.

Understanding the essence of the problem, the investment method is naturally clear and clear.

When the performance of the listed company is climbing, not only the stock price rises, but also the corresponding dividend amount, which will naturally add icing on the cake.

However, the investors who can hold the dividends are too few, and most people still hope to make money by earning the difference.Finally, stop asking about the issue of dividend ex-rights.

To be honest, this question has no significance or value in the long river of time.

The second type is to earn the difference in price.

Actually, it is not difficult to earn the difference in price through investment.

The key issue lies in the fact that investors are eager to earn the difference in price every day, that is, they want the price to rise every day.

From the perspective of the overall market law, the fluctuation of the index is centered on the core valuation, which is the total net profit of this market.

But whether each listed company makes money or not, there is randomness and uncertainty.

Therefore, to eliminate uncertainty, the simplest way to earn the difference in price is to do the index, not individual stocks.

Many people say that A-shares have been around 3000 points for more than a decade and it is still the same.Isn't this a good way to make money?

Buy more when it falls below 3000 points, and sell more when it rises above 3000 points.

But the key issue is that you have micro-ized the macro cycle and the opportunity to earn the difference.

Below 3000 points, you will think it will fall further, and above 3000 points, you always feel it will rise further.

Chasing the rise and killing the fall is a nature, and there is a conflict between human nature and the essence of buying low and selling high.

So, being able to do high sell and low buy is essentially to overcome human nature.

Do not be greedy when it rises, do not be afraid when it falls, the clearer you see, the better you can do.

Doing index fluctuations is actually a superficial phenomenon, and behind it is actually the fluctuation of valuation.

There is an inevitable law in the market, called mean reversion.

That is, the whole market is always on the road from low valuation to high valuation, and from high valuation back to low valuation, oscillating back and forth.Mean reversion is the true secret to making large cycle waves and also the treasure for achieving a stable win.

However, the longer the cycle, the longer the waiting time, and the more people can't hold on.

The great opportunities in the stock market, that is, the historical level of the big bottom, are almost all extremely undervalued, and the great risks, the historical level of the big top, are almost all extremely overvalued.

This rule is actually very simple, but in the market, the players are confused.

The game of passing the flower always makes people think they are not the last one.

But if you react half a beat slower, you will eventually lose your home and stand at the highest position.

The difference is actually very easy to make. When buying, it is enough to be cheap enough, and when selling, the price is reasonable enough.

Following the big cycle of valuation, you can almost make money.

More importantly, you will find that in a big cycle of valuation, many varieties can double.

That is, a cycle of 3-5 years, if done well, it is a doubling market, with an annualized return of 15-20%.The returns can outperform how many investors, it's worth a careful consideration, think about what it means to say, slow is fast.

The shorter the trading cycle, the higher the difficulty of making money, it must be admitted that the market is such a principle.

It is said that retail investors trade under the surveillance of the main capital, and it is actually not wrong at all.

Every move of retail investors is clearly understood by the main capital as the opponent.

In this situation, it is really very difficult to escape.

Only by seeing the end first and starting in advance, no matter how tortuous the road is, can we reach the other side.

It is important to understand that in a market that only goes up, capital wants to make money, it must lift the stock, there must be opportunities, if the listed company really makes money in the long run, it will definitely distribute dividends, and distribute the dividends to investors.

In the investment market, see through the most fundamental essence, and find opportunities according to the essence, investment is not difficult.

Try to put down the word "gambling" as much as possible, that is not something ordinary investors can do.

Leave a reply

Copyright © 2024. All rights reserved. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.