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Showing posts from June, 2020

What is the essence of the stock market?

If you have invested in stocks for many years, and you already know what stocks are. But if I tell you, even if you have invested in stocks for many years, even if you are still losing money, you may have misunderstood what stocks are. Many people think that buying stocks is investing in a company and becoming a company shareholder. As long as the company makes money, the stock price will rise. As a shareholder, you can share the economic achievements of the company’s development, such as obtaining dividends from the company, such as the appreciation of existing capital, is it not good to return cash flow every year?  If you think so and are willing to keep close to the company's stock if you wait for 5 years, 10 years, 20 years, then this idea may be correct, I will not stop you. But if you buy stocks just to make money, then I can tell you that the idea just now may be wrong. And this idea may cause you to often lose a lot of money, do you want to know why? First, if you a

What is the average cost method?

Due to the recent plunge in the global market, I noticed that some people came out to promote an investment method called the fool-style stock disaster investment method. The thinking behind it is similar to other lazy investment methods, or monthly stocks/funds, just to change the saying, I will dismantle the problems behind you one by one. Let you see the risks you need to bear, first look at the logic behind this method. Its approach is this when the market drops 10%, you invest 20% of the funds to buy stock market ETFs when the market drops 20%, you invest another 20% when the market drops 30%, you invest another 20%, And so on. Until the market drops by 50%, you will put all the funds into the market, and when your average cost is equal to the market drops by 30%, you will buy all the funds in the market ETF (that is, All in). It is a kind of average cost method. The principle of this method is that, first, he believes that the maximum decline in the market is about 50%. A

How to judge the market entry signal?

buy sell Most people lose money when investing in stocks. One of the biggest reasons is that they buy stocks at the wrong time. Why did they buy the stock at the wrong time? Facts have proved that many people do not know that stocks only rise 1/4 times, and that is the easiest time to make money. And in another 3/4 of the time, making money is difficult, and losing money is easier.  Today, I will share how to choose the right time to buy stocks. I hope you can see the final result because, in the end, I will share with you how to use simple technical indicators to help us find the exact input time. First of all, everyone must know a concept, whether it is a stock market or a stock, there are four stages. Let us take the stock market as an example. The first stage is called the "next stage".  At this time, the market has just experienced a sharp decline, and most investors in the market are not interested in the stock market, because their memories are still stuck in t

The signal that the stock market has peaked?

the stock market Although I know how to judge when the bear market is over and when I should buy at the bottom, I still don't know how to judge the selling at the top. I'm afraid I don't know when to leave the market after buying stocks in the future. If you have also tried to avoid the crash, stock market crash, and even bear market, or always hold stocks at these times. These four tricks are based on my experience in the stock market for more than 10 years. They help me hold cash early before many market declines, so I suggest that you must see the end. It is likely to help you invest in stocks.  Raise to another level. Because knowing how to go is more important than knowing how to buy, and knowing how to go is an important factor in determining how much you can earn or lose. The first trick, everyone needs to learn to identify the Distribution Day. As the name implies, the shipping day is a day of huge selling pressure. On that day, it may be that large account

The five stages of company growth!

company Many people who study stocks will analyze the fundamentals of the stock, such as viewing its performance report, PE, PB, PEG, debt ratio, dividend ratio, cash flow, ROE, EPS growth, etc. I don't know if you tried it. After performing many basic analyses, you will feel that the prospects for a particular stock are very good.  You have even read the analysis reports of many large banks, or listened to the analysis of many market participants and obtained a consistent high evaluation.  Then, you will think that this stock will grow in the future, so you buy it and think that you can use this stock to create a better future from now on, and the final development of the story is the opposite of the fact that the development direction will eventually Put you in trouble or lose money. I will not deny the importance of basic analysis, because, in addition to focusing on technical analysis, I am also very concerned about the company's basic factors. I am an investor foc

When did the economic bubble burst?

the economic bubble In addition to the recent ups and downs in the stock market, a lot of things have happened in the financial sector, including a series of bail-out measures including major central banks, the liquidity test of the bond market, and even more, terrible data show that even Wall Street hedge funds, everyone Confused about the current situation. The bubble-filled world of financial assets has triggered a domino effect. The Fed experienced a repurchase that began in September 2019. After a shortage of market funds, it has been printing money to save the market. The crazy bailout should be temporary. Until February 14, 2020, the Fed issued a statement saying that it will gradually reduce the bailout to the repo market from 120 billion to 100 billion per day, and will seize the market for 14 days of repurchase from 30 billion to 20 billion. This move may bring liquidity pressure to the market. In turn, it will cause turbulence in the stock market, I did not expect this

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said

The thinking of value investing

value investing The epidemic continues to spread, the population of new crown infections keeps growing, and the world's economy is facing a huge cold winter. During this period, the death of black people in the United States even changed from anti-epidemic to protest, and economic and social life has always been difficult to return to the right track. But what is surprising is that the US Nasdaq index has gone out of the V-shaped reversal in just over two months, hitting a record high. Looking at the record, some customers left the market in the stage of the world epic plunge in mid-March, and recently reluctantly added the position back, the difference between the previous one and the next 10-15%, this is almost a return The average return of a good fund manager in a year. Sometimes, we always take a look at ourselves, thinking that we can sell high and sell low to make a difference, and even straighten the stock index line, but in the end, it is a fierce operation, al