Four Tips For Individual Investors To Remain Invincible

stay equity market There are four basic theorems.

Theorem 1: in this world, the stock market is indeterminate. If a technical analysis is accurate, unless it is almost unknown, its existence will cause the result to be unknowable.

In the first group of people who drew k-lines, the secrets of the stock market were as clear as an electrocardiogram. Finally, the coordinate paper is out of stock, and everyone will paint it. The result is what it looks like today. K-line Same time.

Theorem 2: in the high-dimensional world, the fluctuation of stock market should be regular.

Unfortunately, the higher dimension of the world is to us, just like the donkey's carrot before the donkey, to find an invincible position, or to waste time and energy to conceive of higher dimensional space. We can stand there and peep at the natural cycle. But if we can really achieve it, we have become Buddhas. Is it not a waste of speculation?

Theorem 3: Retail investors In terms of liquidity, it has the advantage that the dealer can not match.

Unfortunately, almost no one can make good use of this advantage.

Well, these are the first three basic theories of the stock market. The fourth is not for the time being. Let's talk about practice.

The little turkey asked the old chicken: why do I have to do 20%? The old cock answered: the fox can always catch 80% of the turkey.

Only 20% of the leaves on the autumn tree can float out the small area of the 80% fallen leaves.

The diffracted photon of 20% will leave a small range of 80% photons.

When 100 speculate on the height of the tallest person in the world, 80 answers are confined to a very small area.

If we all have the same intelligence quotient, how can we become a more unusual 20%?

Theorem 4: buying point determines profit.

You can't predict the future stock price trend. Only the dealer knows, and he is flexible. But you can decide when you want to buy, no one can force you.

When you have the impulse to buy for the first time, hold back and observe for a few days. If you go up, forget it completely. If you fall, you will have second buying impulses.

When you have the urge to buy second times, hold back, if it rises again, forget it completely. If you fall again, you will have third buying impulses.

When you have the urge to buy third times...

Until you are convinced that your buying cost has fallen below the buying cost of most people, you must buy enough chips at this time.

Originally, "tolerance" is the biggest secret of becoming 20%.

Of course, this way your efficiency will become very low, because you may miss many opportunities, but you have escaped most of the traps that the dealer has laid for you. Once you build the warehouse, your cost point is likely to be lower than that of the banker. Success has been able to bear this opportunity. Often, third days or fourth days, your stock pool becomes red. When you are red, you can easily enter the Zen state. This is the nightmare of the dealer. He has nothing to do but take you to the sedan chair. Fortunately, he doesn't care, because 80% people have been caught by him.

Always remind yourself that the stock market is to earn money instead of paying tuition fees. So what is the hurry? A good time is better than ten thousand actions.

Objectively speaking, the retail business under the guidance of this principle can only be traded two or three times a year. If we can resist loneliness, we will be able to find an invincible position and win the battle. Every transaction will bring you a substantial return.

Where did the money go?

Misunderstanding: the stock market is a zero sum game, and the winner's money is, of course, the loss of the person who has lost money. If someone makes money, someone must lose the corresponding money.

Truth: the profit makers on the stock market actually do not really make profits. They are just mathematical symbols between the two currencies. People who lose money do not really lose money. As long as you don't cut meat, your pain is only illusion, but there is no real money loss.

Finally, let's consider a very simple and fundamental question about the stock market: where does the winner win the money?

Let's do another experiment in the mind, assuming that there are only 1 people at the beginning of the stock market, and he holds 100 shares.

Now 100 new investors are investing in stocks, and each person has invested 10 yuan. After fully changing hands, the final balance price is 10 yuan. 1000 yuan to chase 100 shares, after balancing 10 yuan to 1 shares. {page_break}

The first 1 people made 1000 yuan, and 100 of them later had a total market value of 1000 yuan, and no one lost money.

The 100 men were as happy as a madman, and in the end, they recruited 1000 others.

1000 new investors, each invested another 10 yuan. So how much will the stock price be balanced? 100 yuan.

Obviously, the first 100 people earned ten times, and the total value of the latter 1000 was still 10000 yuan, and no one lost money. Thinking: where did the first 100 people earn money from?

The money making effect has attracted 10000 people, and everyone has invested 10 yuan, and the stock price will be 1000 yuan.

The game has been going on, and the money making effect has attracted more people. The participants are all making money, no one loses money, and the money earned by a person is equal to the amount of money paid by a paid person. Interestingly, the money maker saw the new man earn money again, and he came back. He put in the money he earned. That is to say, the first 1 people in the model, the first 100, and 1000 people, and they returned the earned money, so that the stock price changed to 20 yuan, 110 yuan, and 1110 yuan.

This model is known as the "capital driven bull market". Return to the real stock market, when the speed of new issue can not keep up with the speed of new capital entering the market, a large number of funds chasing less stock will lead to a rising trend of stock. The earning effect will attract more capital influx, but anyone who sells shares will regret it too much, because it is more painful to hold up than to lay off. The emptiness rush to turn around and make the money again into the market. Capital flows continuously into the stock market. The bull market is formed and irresistible. Everyone is making money and no one is losing money.

Wait a minute, we must know what happened next.

When more and more people choose to sell their shares away from the market, everything in the model starts to reverse and the inflection point comes to an end.

When there are 1000 people left, the remaining 100 people are left with 1 people. Wealth evaporates, everyone loses money, everything is back to its origin.

Back to reality again. The reality is much more complicated, because there are 1600 listed companies, 70 million investors, almost unlimited funds and almost the same stock. There are exchanges, tax bureaus, securities companies, there are dealers, there are leading eldest brother, there are funds. These factors overlay the truth and make us think that the stock market is a zero sum game.

The emergence of stock makes the stock market have two currencies - cash and stock. The exchange rate of these two currencies is multithreading. When a currency appreciates or depreciates relative to another currency, a person holding another currency will collectively lose money or make profits, while no one must pay the corresponding profit or loss. So where did the corresponding profit or loss go?

The answer is that it is absorbed by another currency through exchange rate, just like a sponge absorbing excess water.

The profit makers on the stock market actually do not really make profits. The profit is just a mathematical symbol between the two currencies. As long as you do not sell away, you are in the illusion that you have never earned "real money". Similarly, those who lose money do not really lose money, and losses are only exchange symbols between the two currencies. As long as you don't cut meat, your pain is also illusions, and there is no loss of "real money".

Knowing the secret, you will know how you lost money. When you should choose to hold RMB, you change the renminbi into another "money" - share. When you sell the stock that has already lost money, your loss nightmare comes true - you return to the RMB system, and the number is really small. No one will benefit from it on the macro level.

"This money is not the other money", is it fun? It's always fun to find out the truth. Knowing the secret of why the stock market is not a zero sum game, your losses will become voluntary. You will no longer feel that there is a pair of greedy eyes in the dark to stare at you, and calculate you.

When hurriedly walking becomes a habit, it has replaced life and thinking, and the days have been wasted in the rush. Slow down your footsteps before you can see the beautiful scenery that you can't see at all. The stock market is the same. Slow down, normal mind is the truth of all transactions. The enemy is the banker and the big enemy is the general trend.