Value investment, buy more as you fall
$Netflix(NFLX.US$
I'm sure anyone entering the stock market has heard the above two terms. But how many people are seriously thinking about how to use these two sentences in our investment process?
To figure out how to apply these two sentences, this goes back to what I've been emphasizing recently. First, we need to understand our role in the stock market. Investor or trader?
As a trader, my current crude understanding is that not setting a stop loss and buying more as you fall is an outright leek act. Buying more and more when it falls can actually lower your holding costs. However, if you buy the same number of stocks or the same amount of money each time, then you will inevitably experience a passivation effect. In other words, as you buy more and more, the cost reduction effect of each purchase becomes less and less. Your costs will only drop significantly if you buy much more each time than you currently hold. But ask yourself how much money you have in the stock market for you to use. No matter how many digits it is, it's not infinite. And who can always buy more and more at a lower price? The reality is that after we bought it a few times, we just had to wait and see because our funds were exhausted. If you have a good mentality, you can still hold it; if you don't have a good mentality, you can just cut meat.
Having experienced the above, it is entirely what I learned after teaching tuition fees. I believe everyone has experienced this. If not, it means you're really new to the market, and congrats on reading this post at this point.
After watching the Wolf King video, in my current understanding, my understanding of buying more as you fall is that you must take profit or stop loss before you can buy more as you fall. I understand this content, and I'll talk about it later.
I'm sure anyone entering the stock market has heard the above two terms. But how many people are seriously thinking about how to use these two sentences in our investment process?
To figure out how to apply these two sentences, this goes back to what I've been emphasizing recently. First, we need to understand our role in the stock market. Investor or trader?
As a trader, my current crude understanding is that not setting a stop loss and buying more as you fall is an outright leek act. Buying more and more when it falls can actually lower your holding costs. However, if you buy the same number of stocks or the same amount of money each time, then you will inevitably experience a passivation effect. In other words, as you buy more and more, the cost reduction effect of each purchase becomes less and less. Your costs will only drop significantly if you buy much more each time than you currently hold. But ask yourself how much money you have in the stock market for you to use. No matter how many digits it is, it's not infinite. And who can always buy more and more at a lower price? The reality is that after we bought it a few times, we just had to wait and see because our funds were exhausted. If you have a good mentality, you can still hold it; if you don't have a good mentality, you can just cut meat.
Having experienced the above, it is entirely what I learned after teaching tuition fees. I believe everyone has experienced this. If not, it means you're really new to the market, and congrats on reading this post at this point.
After watching the Wolf King video, in my current understanding, my understanding of buying more as you fall is that you must take profit or stop loss before you can buy more as you fall. I understand this content, and I'll talk about it later.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
出來看上帝 : I can't agree to any more. I like to buy shares in a pyramid way. For example, if the stock of Xinxin has fallen sharply as expected, it can be divided into shares by a certain percentage of the market. In this way, it will not be moved. Look forward to sharing after the Lord! The tweet will certainly learn more about it.