How Should Small Funds In The Stock Market Work?

The stock market is proportional to risk and return investment Although the losers account for the majority of the market entrants, it is not difficult for us to find that a small amount of capital has entered the market around us, and eventually become a big business. From another point of view, it is impossible to "get rich" by a very limited number of wages, and money is often favored by people who dare to take certain risks and have an enterprising spirit. Therefore, it is justifiable to use petty cash to enter the market to gain greater benefits. However, investment should focus on ways and means, blind investment is simply "blind horse whip", it is strange not to fail. As small and medium-sized investors with small amount of capital entering the market and high expected return on investment, it is more critical to establish a sound investment philosophy. Specifically, the source of funds should be healthy. The reason why the word "health" is used here is that some investors enter the market with funds from relatives and friends' fund-raising, borrowing, loans, and even misappropriated funds. For small and medium-sized investors, it is the most practical to keep a sober and calm mind and "do as much as you can with as much capital". The funds entering the market must be the funds that are not in urgent need after arranging family life. "Borrowing money to make money" is only applicable to production and operation activities, not suitable for stock market investment.

To establish steady The idea of investment is not to get rich overnight. Stock market investment is not about buying lottery tickets. You can't expect to win the lottery and become a millionaire immediately after you buy stocks. This is especially true today, when the era of rising and falling limits and short-term prosperity has passed. In fact, since most small and medium-sized investors are "wage earners" and do not have time to "soak" in the stock market all day long, it is an ideal investment strategy to embrace the bull market and stay away from the bear market.

The selected stock should be consistent with the national industrial policy, and the product has no market or is near the end of the road listed company It's better not to touch stocks. Although restructuring and M&A will still be the best means for "shell" enterprises to transform themselves in the past, now and even in the future, and restructuring stocks will therefore continue to tell the story of "black chicken becoming phoenix", as small and medium-sized retail investors who have neither timely nor sufficient information grasp, it can be said that this money was not earned by themselves, However, it is safer to choose the stocks of listed companies supported by policies, and it is also more suitable for medium - and long-term investment.

In addition, we should learn to read the financial statements of listed companies to stay away from fraudulent listed companies and choose enterprises with strong profitability, good growth and good asset quality for investment.

Finally, it should be pointed out that many investors do not lack the courage to buy stocks, but are not good at grasping the opportunity to buy stocks; But when selling, they are often greedy, so that sometimes the stock price has gone up and down several times, but investors are always sitting in the "elevator" unwilling to come out. In fact, small and medium-sized investors can grasp a simple principle, that is, the "season" of buying stocks will come when the market sentiment starts to rise from the extreme downturn; And when the market is buzzing with people and he has made a lot of money in the market, it is time to execute the "retreat order".