What kind of investor are you, and what kind of investment model are you suited to?
Investment philosophy (model): Style is a path determined by multiple factors such as investment experience, investment philosophy, financial qualifications, personality characteristics and values of mature investors. Style also means that investors can make stable money — of course, they may not make stable money; in the end, investors can only leave their money to others to take care of. Therefore, investors must not only make money, but also form a stable style to fix this “sense of rhythm” of making money
The three models correspond to the short, medium and long term. Short-, medium- and long-term investments all have a matching profit model or investment system. In fact, it doesn't matter how to make a profit or what model you choose to work in the short, medium and long term. The important thing is that you must have a perception (including personal personality and ability) and investment system that matches it. You must never mismatch these. You can't be the middle line in the short term; the middle line doesn't take advantage of the long term; long-term thinking also plays games in the short term; in the end, you can only be slapped left and right. Only by following one's own strategy and strictly implementing it can the stock market prosper.
(1) Short-term trading - 3-7 trading days: Short-term trading means respecting the market and following the trend. There are no restrictions on choosing the target item. It only focuses on high purchases and then higher sales. There is no requirement for profit, but losses are strictly prohibited, and you can enter the market if you have a profit margin of at least 3 points. The short term does not require familiarity with the fundamentals of the enterprise, but it requires a good sense of market and strict discipline. The key point is to follow the trend, that is, if the trend does not change, you can always hold shares. For example, when technology stocks were bullish in the past, they often rose for a few months. Although you enter the market with a short-term idea, you must not leave the market too early because profits exceed imagination or time exceeds expectations, so daring to win and being timid to fail is the essence of short-term operation.
Short-term opportunities: generally event-driven, superimposed by emotions. Examples include sudden policy news, major restructuring and acquisitions, and short-term market supply and demand imbalances due to emergencies, such as mask and glove stocks during the severe period of the epidemic. The incident led to a short-term influx of market capital, which was generally dominated by hot money, and continued to rise. Whether an event can bring a clear increase in value to the company is not the most critical variable; rather, sentiment and trends dominate the peak. Some companies with good chip turnover and proper market capitalization are the easiest to cheat. The most authentic ones don't necessarily increase the best. They are hype anyway; the focus isn't necessarily authentic. However, some events have brought substantial value increases to the company, and will become a trend for a longer period of time. Therefore, in the short term, there is usually a lot of short-term increase, but it falls in the medium term. The reason may be a lack of medium- to long-term logic, or it may be that the short-term increase is huge, and the whole logic can be interpreted. Another point is that the emotional capital of short-term games is withdrawn when finished, the sound of drums disappears, and the game of hitting the drums and spreading flowers is over. The appearance of short-term opportunities will definitely leave a mark on the graphic. This requires integration with technical analysis, understanding the “language” and trends expressed in the K-line pattern charts of stocks and markets, familiarity with operating systems such as Elliott Wave Theory, Dow's technology, entanglement, and Gann Theory. Finally, it is also necessary to constantly pay attention to news such as economics, current affairs, politics, etc., and have thorough analysis.
(2) Mid-line trading - 7-15 trading days: Using the method of fundamental stock selection+technical selection and time resonance, starting from capital, using logic as the foundation, using market sentiment to follow the trend, buy stocks with probability+high odds, and strictly set stop losses to obtain absolute returns. The middle line requires a full grasp of the fundamentals of the enterprise and a good understanding of the price valuation system. The target object is an enterprise with relatively stable operations and no major ups and downs. The target is to buy when the market is undervalued and sell when it is overvalued. The expected profit target is 20% or more before entering the market, and a stop loss level of 8% is set. It requires you to be a price finder, have the courage to do what most people are afraid to do, and require you to understand the market but not fully follow it.
Mid-tier opportunities: It is generally a change in industry opportunities or a reversal of corporate difficulties, and an obvious change in industry trend expectations. At this time, it is particularly suitable for band operation. For example, in the electric vehicle community last year, due to changes in foreign electric vehicle policies, Tesla's active expansion of production, and better-than-expected development plans, the entire electric vehicle community created a wave of trends. Generally, companies participate in the mid-tier market because they have a large amount of capital, and trading is relatively slow and steady, and cannot carry the entry and exit of these large vessels in the short term. Only industry and ethnic trend opportunities can allow a large group of corporate capital to trade. At the same time, their transactions also promote the formation of trending markets. 15 transactions are sufficient to obtain 20% to 50% profit, while swing operations are more profitable. (This combination of positive feedback and negative feedback of decline must be carefully experienced)
(3) Long-term layout - 1-2 months: Long-term requirements are the highest. It requires a deep understanding of the enterprise, clearly grasping the company's development trends over the next few years, and sharing the growth of the enterprise with an investment mentality. The target is to pick one out of thousands. The profit requirement is tens of times. In the face of such an opportunity, don't be afraid of any loss, and no stop-loss indicators other than fundamentals are set, because even a loss of 50% or more is insignificant in the face of tenfold stocks. For it, buying or not selling is the best strategy. Confidence, respect for objective values, ignoring, and even being brave against the market are essential investment qualities. Daily fluctuations of 20% and 30% should not be considered in the face of such prospects. Don't give up on big bulls. This is the only motto I'll always keep in mind Only then can stocks truly be a life-changing thing. Tickets with a long-term layout are usually bought at the bottom in combination with technical aspects, so there is limited room for decline, and you can fully enjoy the thrill of the surge after the market rediscovers “corporate value.”
Long-term opportunities: This is probably the most common operation method for most people, but the long-term focus is not on holding it for a long time, but on thinking for a longer period of time. Many tragedies are due to the reverse of the above statement. When I bought it, I didn't think for a long time, but it took a long time to hold it. A long-term way of thinking allows everyone to think more deeply and for the long term, rather than a code of action. The essence of long-term shareholding is understanding, analysis, and judgment of the industry circuit, industry competition, industry space, company business model, competitive advantage, social development status, etc., and selecting a great company with a good track has nothing to do with the K line, has nothing to do with stock price fluctuations; it is only related to the future position, growth, performance, and market value compatibility of the company. This is not a simple thought process. It requires a huge knowledge reserve, excellent thinking and analysis ability, and rich social experience to make a long-term judgment about the company. Moreover, the only constant thing in the world is “change”. In a world of dynamic competition, continuous tracking and learning can we continuously judge whether long-term value changes.
II. Short-term trading discipline
Short-term investors come and go in a hurry in the stock market, and are often prone to mistakes. Short-term risk does not come from the short term itself; it mainly comes from operational errors, which requires compliance with operating discipline. The stock market is a high-risk market. You must have a good mentality. You must not lose your mind because of certain profits, and not regret certain failures or setbacks. As a short-term investor, you should adjust your mentality and don't expect too much. In other words, quit being corrupt, control your desires, and set a good stop-loss point.
In the short term, generally speaking, when a certain group starts up, it can immediately follow up; it is not a problem to throw away profits earned at least 5% when opening higher the next day. However, if you find something wrong, you must resolutely sell it the next day, and even if it is below the purchase price, you must take action to avoid falling deeper. Because retail investors' capital is limited, once a duvet is put on, no matter how cheap it is, it cannot recover. You need to know that out of all the shareholders, only a few can sell at the highest price; similarly, only a few can buy at the lowest price; most people can only follow the trend. Short-term operations require good mental quality, and take action when it is time to take action; otherwise, the gains outweigh the losses.
The current stock market is showing a pattern of fragmentation. Not all stocks are rising, nor are all stocks falling. Today is the rise of the high-tech community; tomorrow it may be the asset restructuring group's turn; the day after tomorrow, it may be the group with excellent performance... It is always changing. As long as the methods are right and bold and careful, they can seize short-term opportunities. Once you see it, you need to act decisively, never delay, and lose your chance.
III. Short-term stock selection techniques
Short-term investment itself has extraordinary appeal, and short-term opportunities are endless, but the key is to master stock selection techniques. If investors can master short-term stock selection techniques when the market stabilizes, they can easily navigate the future development of the market. The specific principles are as follows:
(1) When the general market continues to decline, investors should begin actively selecting stocks to lay the foundation for timely participation in hype when the market stabilizes in the future. At this time, they should focus on selecting individual stocks whose stock prices have fallen sharply and can stop and stabilize ahead of the general market, and list them as the target of attention.
(2) When the general market stops falling and stabilizes, it is necessary to refine the primary stocks and select individual stocks that can successfully form a small bottom pattern in terms of shape. The stabilization time for individual stocks is clearly longer than that of the general market, and after successful bottoming out, individual stock trends must have a certain degree of independence.
(3) For the stocks that have been checked, further select those stocks at the bottom where the trading volume can be moderately increased.
(4) Confirmation. While the general market has confirmed that the decline has stabilized and there are signs of strengthening, for stocks that have undergone multiple strict screening, if any individual stock can show a strong increase in volume, it can be confirmed as a short-term buying signal, and it is necessary to follow up the purchase in a timely manner
It is divided into the following four methods:
① Sudden Stock Selection Act
In recent years, the stock market has had several sudden market outbreaks every year. In the face of this kind of eruptive market, seizing the opportunity means seizing the money. The general trend is upward. There are always certain groups or individual stocks that are ahead of the general trend, such as some well-settled hot money stocks, groups that have not fully exploited the subject matter, and the chips are concentrated on individual corporate stocks, listed companies that use issues, etc., and these individual stocks or groups will be more capable of expanding. By choosing such stocks, you can stay ahead of the general trend.
② Stock Selection Act
The stock market is not lonely. When the market is booming, the market often ends in strength, volume increases and prices rise, and individual stocks flourish across the board. In the face of such opportunities, as long as they bravely pursue and ship when inertia rises the next day, they will generally reap some dividends.
③ IPO Group Stock Selection Act
Before IPOs are listed, brokerage firms generally boost stocks in the same group in order to make the listing of IPOs go smoothly. Every time before an IPO is listed, the groups associated with it will become a hot spot in the market. Investors should resolutely buy the shares of the relevant group of IPOs before the IPO is listed, and it is best to wait until the IPO is listed. If IPOs can still open higher and go higher, related stocks can rise, but this is very rare.
④ Use the comparative law to select stocks. Since they are short-term, stocks with explosive short-term profits are needed, then they must never rebound deeply, because a deep decline is a downward trend, and you don't know where the fall will end. The rebound is often a one-day market with no battery life, so the probability of success if you choose it is small. Therefore, you should choose stocks that have an upward trend and are stronger than those in the larger market. Then buy it in a reasonable place to press it back.
Warehouse management:
You need to know how to manage a warehouse so you don't panic if you have food in your hands, so don't blindly fill up the warehouse.
Short-term tickets (technical points of purchase, minor fuss) are placed on the 2-3 floor
Mid-tier tickets (fundamental reversal+technical purchase points) are generally held at the 5-6 levels
Long-term tickets (asset restructuring or industry trend opportunities, with high certainty) are on the 8-10th floor, and are even leveraged.
Under a rotating pattern, each short-term ticket is now configured with a 3-tier warehouse. There is no effective continuous hype about the subject. If there is a backlash adjustment, there are enough positions to reduce absorption, and the intraday time share rises to the peak. This is the intraday arbitrage model: the risk of harvesting arbitrage+diluting shareholding costs and reducing shareholding costs during the day.
The above is the attitude and mentality of operating mode, position management, and risk control in a rotating pattern. I hope it will be helpful to all shareholders. I also hope that everyone can clearly understand what stage they are at, what they should do, and get out of the current difficult situation as soon as possible.
The three models correspond to the short, medium and long term. Short-, medium- and long-term investments all have a matching profit model or investment system. In fact, it doesn't matter how to make a profit or what model you choose to work in the short, medium and long term. The important thing is that you must have a perception (including personal personality and ability) and investment system that matches it. You must never mismatch these. You can't be the middle line in the short term; the middle line doesn't take advantage of the long term; long-term thinking also plays games in the short term; in the end, you can only be slapped left and right. Only by following one's own strategy and strictly implementing it can the stock market prosper.
(1) Short-term trading - 3-7 trading days: Short-term trading means respecting the market and following the trend. There are no restrictions on choosing the target item. It only focuses on high purchases and then higher sales. There is no requirement for profit, but losses are strictly prohibited, and you can enter the market if you have a profit margin of at least 3 points. The short term does not require familiarity with the fundamentals of the enterprise, but it requires a good sense of market and strict discipline. The key point is to follow the trend, that is, if the trend does not change, you can always hold shares. For example, when technology stocks were bullish in the past, they often rose for a few months. Although you enter the market with a short-term idea, you must not leave the market too early because profits exceed imagination or time exceeds expectations, so daring to win and being timid to fail is the essence of short-term operation.
Short-term opportunities: generally event-driven, superimposed by emotions. Examples include sudden policy news, major restructuring and acquisitions, and short-term market supply and demand imbalances due to emergencies, such as mask and glove stocks during the severe period of the epidemic. The incident led to a short-term influx of market capital, which was generally dominated by hot money, and continued to rise. Whether an event can bring a clear increase in value to the company is not the most critical variable; rather, sentiment and trends dominate the peak. Some companies with good chip turnover and proper market capitalization are the easiest to cheat. The most authentic ones don't necessarily increase the best. They are hype anyway; the focus isn't necessarily authentic. However, some events have brought substantial value increases to the company, and will become a trend for a longer period of time. Therefore, in the short term, there is usually a lot of short-term increase, but it falls in the medium term. The reason may be a lack of medium- to long-term logic, or it may be that the short-term increase is huge, and the whole logic can be interpreted. Another point is that the emotional capital of short-term games is withdrawn when finished, the sound of drums disappears, and the game of hitting the drums and spreading flowers is over. The appearance of short-term opportunities will definitely leave a mark on the graphic. This requires integration with technical analysis, understanding the “language” and trends expressed in the K-line pattern charts of stocks and markets, familiarity with operating systems such as Elliott Wave Theory, Dow's technology, entanglement, and Gann Theory. Finally, it is also necessary to constantly pay attention to news such as economics, current affairs, politics, etc., and have thorough analysis.
(2) Mid-line trading - 7-15 trading days: Using the method of fundamental stock selection+technical selection and time resonance, starting from capital, using logic as the foundation, using market sentiment to follow the trend, buy stocks with probability+high odds, and strictly set stop losses to obtain absolute returns. The middle line requires a full grasp of the fundamentals of the enterprise and a good understanding of the price valuation system. The target object is an enterprise with relatively stable operations and no major ups and downs. The target is to buy when the market is undervalued and sell when it is overvalued. The expected profit target is 20% or more before entering the market, and a stop loss level of 8% is set. It requires you to be a price finder, have the courage to do what most people are afraid to do, and require you to understand the market but not fully follow it.
Mid-tier opportunities: It is generally a change in industry opportunities or a reversal of corporate difficulties, and an obvious change in industry trend expectations. At this time, it is particularly suitable for band operation. For example, in the electric vehicle community last year, due to changes in foreign electric vehicle policies, Tesla's active expansion of production, and better-than-expected development plans, the entire electric vehicle community created a wave of trends. Generally, companies participate in the mid-tier market because they have a large amount of capital, and trading is relatively slow and steady, and cannot carry the entry and exit of these large vessels in the short term. Only industry and ethnic trend opportunities can allow a large group of corporate capital to trade. At the same time, their transactions also promote the formation of trending markets. 15 transactions are sufficient to obtain 20% to 50% profit, while swing operations are more profitable. (This combination of positive feedback and negative feedback of decline must be carefully experienced)
(3) Long-term layout - 1-2 months: Long-term requirements are the highest. It requires a deep understanding of the enterprise, clearly grasping the company's development trends over the next few years, and sharing the growth of the enterprise with an investment mentality. The target is to pick one out of thousands. The profit requirement is tens of times. In the face of such an opportunity, don't be afraid of any loss, and no stop-loss indicators other than fundamentals are set, because even a loss of 50% or more is insignificant in the face of tenfold stocks. For it, buying or not selling is the best strategy. Confidence, respect for objective values, ignoring, and even being brave against the market are essential investment qualities. Daily fluctuations of 20% and 30% should not be considered in the face of such prospects. Don't give up on big bulls. This is the only motto I'll always keep in mind Only then can stocks truly be a life-changing thing. Tickets with a long-term layout are usually bought at the bottom in combination with technical aspects, so there is limited room for decline, and you can fully enjoy the thrill of the surge after the market rediscovers “corporate value.”
Long-term opportunities: This is probably the most common operation method for most people, but the long-term focus is not on holding it for a long time, but on thinking for a longer period of time. Many tragedies are due to the reverse of the above statement. When I bought it, I didn't think for a long time, but it took a long time to hold it. A long-term way of thinking allows everyone to think more deeply and for the long term, rather than a code of action. The essence of long-term shareholding is understanding, analysis, and judgment of the industry circuit, industry competition, industry space, company business model, competitive advantage, social development status, etc., and selecting a great company with a good track has nothing to do with the K line, has nothing to do with stock price fluctuations; it is only related to the future position, growth, performance, and market value compatibility of the company. This is not a simple thought process. It requires a huge knowledge reserve, excellent thinking and analysis ability, and rich social experience to make a long-term judgment about the company. Moreover, the only constant thing in the world is “change”. In a world of dynamic competition, continuous tracking and learning can we continuously judge whether long-term value changes.
II. Short-term trading discipline
Short-term investors come and go in a hurry in the stock market, and are often prone to mistakes. Short-term risk does not come from the short term itself; it mainly comes from operational errors, which requires compliance with operating discipline. The stock market is a high-risk market. You must have a good mentality. You must not lose your mind because of certain profits, and not regret certain failures or setbacks. As a short-term investor, you should adjust your mentality and don't expect too much. In other words, quit being corrupt, control your desires, and set a good stop-loss point.
In the short term, generally speaking, when a certain group starts up, it can immediately follow up; it is not a problem to throw away profits earned at least 5% when opening higher the next day. However, if you find something wrong, you must resolutely sell it the next day, and even if it is below the purchase price, you must take action to avoid falling deeper. Because retail investors' capital is limited, once a duvet is put on, no matter how cheap it is, it cannot recover. You need to know that out of all the shareholders, only a few can sell at the highest price; similarly, only a few can buy at the lowest price; most people can only follow the trend. Short-term operations require good mental quality, and take action when it is time to take action; otherwise, the gains outweigh the losses.
The current stock market is showing a pattern of fragmentation. Not all stocks are rising, nor are all stocks falling. Today is the rise of the high-tech community; tomorrow it may be the asset restructuring group's turn; the day after tomorrow, it may be the group with excellent performance... It is always changing. As long as the methods are right and bold and careful, they can seize short-term opportunities. Once you see it, you need to act decisively, never delay, and lose your chance.
III. Short-term stock selection techniques
Short-term investment itself has extraordinary appeal, and short-term opportunities are endless, but the key is to master stock selection techniques. If investors can master short-term stock selection techniques when the market stabilizes, they can easily navigate the future development of the market. The specific principles are as follows:
(1) When the general market continues to decline, investors should begin actively selecting stocks to lay the foundation for timely participation in hype when the market stabilizes in the future. At this time, they should focus on selecting individual stocks whose stock prices have fallen sharply and can stop and stabilize ahead of the general market, and list them as the target of attention.
(2) When the general market stops falling and stabilizes, it is necessary to refine the primary stocks and select individual stocks that can successfully form a small bottom pattern in terms of shape. The stabilization time for individual stocks is clearly longer than that of the general market, and after successful bottoming out, individual stock trends must have a certain degree of independence.
(3) For the stocks that have been checked, further select those stocks at the bottom where the trading volume can be moderately increased.
(4) Confirmation. While the general market has confirmed that the decline has stabilized and there are signs of strengthening, for stocks that have undergone multiple strict screening, if any individual stock can show a strong increase in volume, it can be confirmed as a short-term buying signal, and it is necessary to follow up the purchase in a timely manner
It is divided into the following four methods:
① Sudden Stock Selection Act
In recent years, the stock market has had several sudden market outbreaks every year. In the face of this kind of eruptive market, seizing the opportunity means seizing the money. The general trend is upward. There are always certain groups or individual stocks that are ahead of the general trend, such as some well-settled hot money stocks, groups that have not fully exploited the subject matter, and the chips are concentrated on individual corporate stocks, listed companies that use issues, etc., and these individual stocks or groups will be more capable of expanding. By choosing such stocks, you can stay ahead of the general trend.
② Stock Selection Act
The stock market is not lonely. When the market is booming, the market often ends in strength, volume increases and prices rise, and individual stocks flourish across the board. In the face of such opportunities, as long as they bravely pursue and ship when inertia rises the next day, they will generally reap some dividends.
③ IPO Group Stock Selection Act
Before IPOs are listed, brokerage firms generally boost stocks in the same group in order to make the listing of IPOs go smoothly. Every time before an IPO is listed, the groups associated with it will become a hot spot in the market. Investors should resolutely buy the shares of the relevant group of IPOs before the IPO is listed, and it is best to wait until the IPO is listed. If IPOs can still open higher and go higher, related stocks can rise, but this is very rare.
④ Use the comparative law to select stocks. Since they are short-term, stocks with explosive short-term profits are needed, then they must never rebound deeply, because a deep decline is a downward trend, and you don't know where the fall will end. The rebound is often a one-day market with no battery life, so the probability of success if you choose it is small. Therefore, you should choose stocks that have an upward trend and are stronger than those in the larger market. Then buy it in a reasonable place to press it back.
Warehouse management:
You need to know how to manage a warehouse so you don't panic if you have food in your hands, so don't blindly fill up the warehouse.
Short-term tickets (technical points of purchase, minor fuss) are placed on the 2-3 floor
Mid-tier tickets (fundamental reversal+technical purchase points) are generally held at the 5-6 levels
Long-term tickets (asset restructuring or industry trend opportunities, with high certainty) are on the 8-10th floor, and are even leveraged.
Under a rotating pattern, each short-term ticket is now configured with a 3-tier warehouse. There is no effective continuous hype about the subject. If there is a backlash adjustment, there are enough positions to reduce absorption, and the intraday time share rises to the peak. This is the intraday arbitrage model: the risk of harvesting arbitrage+diluting shareholding costs and reducing shareholding costs during the day.
The above is the attitude and mentality of operating mode, position management, and risk control in a rotating pattern. I hope it will be helpful to all shareholders. I also hope that everyone can clearly understand what stage they are at, what they should do, and get out of the current difficult situation as soon as possible.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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