My long-term stock market trading strategy!

trading strategy

As a stock market investor, everyone has an investment trading strategy. Through my many years of investment experience, I have tried different investment strategies, used different investment tools, and concluded my own set of investment strategies.

This is a long-term investment strategy, not a short-term one. For ordinary investors, how to cope with the big ups and downs of the stock market, and by sharing my investment trading strategy, I hope that it can help investors and enable the asset portfolio to add value steadily.

First, when the stock market is at different stages, I will use different coping methods. There are usually three stages in the stock market, and I generally use three different approaches.

First, the stock market is in a rising phase. I usually do not use leveraged instruments or make financial loans to trade. Although leveraged trading can make quick and large profits, it can also make quick and large losses.

When trading with high leverage, even if you can judge the long-term upward trend of the stock market, once the callback occurs, you will be forced to close the position, and you will need to pay extra interest and lose all your principal so that you cannot catch the long-term rise. trend.

So when the stock market is in a rising phase, I will conduct fundamental analysis and select some weighted stocks included in the index, such as the weighted stocks of the S & P 500 index.

When selling stocks, I generally analyze whether the value of the stock is overvalued, not whether the price of the stock is too high, and the value of the stock is not equal to the price. When the stock market rises, the price of the stock must continue to hit new highs, but The value may still be underestimated.

Because I use different valuation models to judge, if the value of the stock is undervalued, I buy the stock, and if the value of the stock is overvalued, I sell the stock. Also, it is necessary to cooperate with technical analysis and chart analysis to make the best buying and selling opportunity.

Second, the stock market is in a correction phase. When the stock market pulls back, but the market economy is not in recession, I will take the opportunity to buy undervalued stocks.

However, buying stocks in the stock market correction will have psychological pressure because the stock price is falling. Therefore, I will buy shares by sub-bets. After the first bet is purchased, if the stock continues to fall and falls to a certain extent, I will buy a second bet.

However, it is rare to buy a third bet unless the stock price is cheap enough because the third bet means that the stock price has undergone a significant adjustment and the stock market will fall further.

The first bet on stocks is purchased through fundamental analysis. When stocks are undervalued, they are bought. If the stock is bought at the second bet, technical analysis is required. When the stock price rises, the stock is bought. There are two cases of buying in the second bet.

Buying when the stock price is lower than the price of the first bet, and also buying when the stock price is higher than the price of the first bet. Stock sub-purchase can reduce the risk of investment transactions, at the same time alleviate people's psychological pressure, establish long-term positions, and capture long-term upward trends.

Third, when the stock market is in a down phase. I generally do not trade in stocks, I may only maintain a position of up to 20% and hold some stocks with a small decline. Usually hold cash mainly, through technical analysis and chart analysis, conduct a small number of speculative transactions, focusing on the commodity and foreign exchange market, real estate market, etc.

The above is my long-term stock market investment trading strategy. This trading strategy can increase the value of my asset portfolio steadily. It is also the most comfortable investment trading method with the least personal-psychological pressure, hoping to bring benefits to investors.

Comments

PLTR stock forecast 2025： Long-term holding growth stocks Palantir

Today we are talking about Palantir Technologies Inc.(PLTR) the long-term growth stocks. I have been paying attention to Palantir for a long time before the listing, but after the direct listing, the stock price fluctuated greatly, and the market's valuation faced great divergence. In addition, Palantir chose 80% of the shares to lift the ban three trading days after the financial report. Therefore, I am also prepared to look at the market's reaction after the ban is lifted. However, the stock price did not fall sharply due to the large-scale lifting of the ban. In this round of growth stock valuations, the decline of Palantir is not too large, at about 20%, but the valuation is more attractive than before. From a perspective, I think Palantir is a company worth holding for a long time. Palantir was founded in 2003 as a big data company with founders Peter Thiel, Alex Karp, Joe Lonsdale, Stephen Cohen, and Nathan Gettings. Among them, the third and fo...

Disney stock forecast 2025: Is it time to buy now?

The much-watched Disney released its second quarter financial report this year. Benefiting from the strong recovery of theme parks and the rapid growth of streaming media business, its net profit and revenue both beat expectations. Disney's stock price rose 5% after the market. Let's take a look at the highlights of Disney's earnings this quarter. In the second quarter, Disney’s total revenue reached 17.02 billion US dollars, exceeding analysts’ expectations of 16.76 billion US dollars, a year-on-year increase of 45.5%. Net profit turned from loss to profit, from a loss of US$4.721 billion last year to a profit of US$918 million. From the perspective of departmental business, Disney Parks, Experience and Products departments have brought a boost to the company's revenue. Since the economic restart, Disney's theme parks, cruise ships and offline merchandise retail businesses have all been greatly improved. The quarterly revenue of these bu...

PDD stock forecast 2025: 2021 Q1 financial report analysis

PDD released the financial report for the first quarter of 2021. According to the financial report, as of March 31, 2021, Pinduoduo's annual active buyers reached 823.8 million, a net increase of 195.7 million over the same period of the previous year, leading China's other domestic e-commerce platforms for the second consecutive quarter. In terms of revenue, Pinduoduo’s revenue in the first quarter was 22.167 billion yuan, a year-on-year increase of 239% from 6.541 billion yuan in the same period last year. Under non-general accounting standards, the platform’s net loss attributable to ordinary shareholders in the first quarter was RMB 1,890.3 billion, compared with a net loss of RMB 3.169 billion in the same period last year, and the net loss was significantly narrowed. PDD officially enters a new era of 800 million users The financial report shows that as of March 31, 2021, the number of active buyers on the Pinduoduo platform reached 823.8 m...

Capital Flows Tracking Weekly

Release: January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports. Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

Square（SQ） stock forecast 2025: Is it time to buy?

Today I will talk about a stock that can be held for a long time was born in the field of electronic payment. That is Square, another electronic payment company founded by Twitter co-founder Jack Dorcy. In China, the development of payment methods jumped directly from debit cards to electronic payment, skipping the era of credit card payment, and there is no large-scale popularization. This is due to the continuous innovation of Alipay and Tencent Pay. In the United States, credit card payment was very popular in the past, and the development of electronic payment was relatively slow. Therefore, domestic investors who often use Alipay and WeChat, look at Square's business, it will be very easy to understand, and the development path is relatively easy to predict. Speaking of Square, I have to mention another giant in the electronic payment industry, PayPal. The predecessor of PayPal was Max Levchin, Peter Thiel, and Luke Nosek, founded by Con...

NFLX stock forecast 2025: plummeted 22% after the earnings report.

Time to talk about Netflix, which plummeted 22% after the earnings report. First of all, Netflix's financial report this time does have its thunderous place, but part of the reason for the 22% drop in one breath is because the market sentiment has been very bad recently. At this time, the financial report thunderous will be punished more than usual. It is a wake-up call for companies that are about to report financial reports in the future, so we try to hold the stocks in the hands of companies with relatively stable historical financial reports and try to balance our positions as much as possible, to reduce the risk of financial report storms. After all, this quarter In a more dangerous period, back to the point. Let's take a look at Netflix's financial report this time. In the fourth quarter of 2021, Netflix's EPS was $1.33, exceeding analysts' estimates of $0.82, and revenue was just in line with expectations, with $7.71 billion, an increase of 16% year-on-year...

FinanceLinkway

Search This Blog