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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.
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