What are the principles of becoming a stock market?
First, safety first. Although the stock market came to the stock market to make money, the stock market has always been a "playground" full of risks. Especially in the current situation that listed companies do not pay attention to the return on investment of investors, for the group of investors, the loss is absolute. Therefore, in this venture capital location, I always put safety first. As the saying goes, staying in the green hills, there is no firewood, as long as you can ensure the safety of funds in the stock market, to ensure that they are not eliminated by the institutions, there are opportunities to make money.
Second, you can earn. The essence of buying stocks is an investment. Since investment is of course a return on investment, the necessary profits are still to be pursued. First of all, it is necessary to ensure that the bank deposit interest rate is not too high; secondly, it is to ensure that the money for the purchase of securities newspapers is earned; the third is to earn as much as possible the wages of working in the stock market. This salary can be more or less, depending on the development of the market. It is also based on these three considerations that the lower limit of the target profit I set for myself is 10%, and I can earn 10% each year. This is worthy of my own hard work in the stock market for a year, which is better than many listed companies. False accounts can be much stronger than a 10%.
Third, if you are good, you will receive it. Although greed is a great nature of human beings, it is also a natural enemy of stock trading. Therefore, in the process of stock trading, I always keep in mind the "get it right". I set a target profit of 30-50% for myself every year. Even if I reach 30%, I will complete the task. If I reach 50%, I will complete the task. After that, I will enter the conservative operation stage to keep the results. If you are not allowed, you would rather let go and never make a mistake. Although he will earn less profit, he also reduces many unnecessary risks. After all, the stock market is not a place for more money than anyone else, but a place to see who has lived longer in the stock market.
Fourth, diversified investment. My diversification refers to the ratio of funds allocated between the medium and long term and the short-term, which I usually determine as 6:4. The advantage of this allocation of funds is that on the one hand it can ensure the security of most funds (ie medium and long-term funds), on the other hand, it can take certain short-term gains. However, my fund allocation ratio is not static. As my target profit is completed, the proportion of short-term investment will be smaller and smaller, and the medium and long-term chips will gradually be realized as funds deposited in their accounts.
Fifth, never chase high. My medium and long-term chips are definitely the relatively low-end chips of a stock, because only such a chip can guarantee the safety of his own. My short-term operations will never catch up, especially in the pursuit of stocks that have hit record highs, although according to the technicalists, it is time to break through the record of breaking new stocks, but I would rather The withdrawal will confirm that the breakthrough is effective and will not be pursued when it breaks through. And as a short-term chip, you can only treat it as a short-term holding, from a small one to the next day, and more than three or five days after the sell-off, there are very few short-term operations over a week.