Respect the markert and balance your positions

The market has felt torn since last year. From consumption and medicine to science and technology, new energy and periodic table speculation, the right buy is a bull market, the wrong buy is a bear market. However, there is no investment "if", we can not assume that they can predict the market trend in advance, more can not predict the short-term trend of stocks.

As individual investors, we are unable to do a comprehensive, in-depth and detailed study of the macro trend and individual stocks. This year the top managers have suffered a significant pullback, so we have to be more cautious and in awe of the market. My strategy is to select individual stocks, dynamic balance positions, lower expectations, no margin trading.

By selecting 5-7 leading (or partial leading) stocks in different industries, choose a safe margin to intervene and hold for the long term. When picking individual stocks, we tend to think that they are more likely to go up than down, but sometimes we get them wrong. But even if we get individual stocks wrong, the probability of getting them all wrong is very low. Stocks between profit and loss hedge, holding investment income retreats during the range will be controlled, investment during the feeling will be better. If one or two stocks perform better than expected, the overall rate of return will be ok, more unlikely to appear like a single hanging Changchun high-tech and the tragic explosion of positions.

Assuming that the initial investment principal is 250,000 yuan, 5 stocks are held on average, and the annual return rate of each stock is 100%, 50%, 0%, -25% and -50% respectively, then the annual comprehensive investment income is 37,500 yuan and the investment return rate is 15%, which is far more than the ordinary financial income.

If you consider the new income, cash dividends reinvestment and other factors, the actual return on investment will be higher. If you invest over a long period of time, the return on investment can be very impressive. So do not follow the market blindly, select stocks, balanced position, long-term holding, no margin trading, I think it is a very good investment strategy. $East Money Information(300059.SZ)$ $Ping An Insurance(601318.SH)$ $China State Construction Engineering Corporation(601668.SH)$