There exists a food chain in nature, as well as a food chain in the securities market. In this food chain, individual investors play the bottom link, being eroded by market makers, institutions, enterprises, and the market. In response to this situation, every individual investor must have a clear understanding of the weak environment they are in and develop a suitable investment plan in order to survive in this survival of the fittest environment.

The correct investment strategy is formulated according to the time, place, and people. Although there is no fixed formula for investment strategy, there are also the following fundamental consensus:

1、 Mingshi Operation: According to data statistics, in the Chinese securities market, 80% of stocks turn green during a decline in the index, while 80% of stocks rise during an uptrend. According to this law, the risk to profit ratio in a downward trend can be seen as 8-2; In an uptrend, the risk to profit ratio is 2-8. Therefore, if investors want to avoid risks, they must first choose the trend.

2、 Chip theory: In the securities market, a common saying is' buy stocks to invest '. In practice, we see that the investment community in China profits from price differences, and this reality can also be seen from the fact that the total amount of stamp duty and transaction fees for the whole year of last year was basically equivalent to the total profit of listed companies. This means that both the main players and individual investors make profits in the market at the cost of sacrificing investor capital. Due to this reality, a market for market makers has emerged, which has led to artificial price manipulation and the occurrence of false themes, such as typical examples like Lantian Shares and Yin Guangxia. Therefore, treating stocks as chips, when the chips are highly concentrated, the opposite will happen and investors can sell them; On the contrary, the process of continuous dispersion after the chips are highly concentrated is the stage of continuous bottoming out of stock prices. Investors should use this theory to prevent falling into investment misconceptions.

3、 Band operation: The movement trajectory of the stock market is in the form of fluctuations. The first time the Shanghai Composite Index went from 386.85 points to 1558.95 points, the second time was from 326.92 points to 1052.98 points, the larger time was from 518.18 points to 1510 points, and the recent wave was from 1047.83 points until last year's historic high of 2254.61 points. In the midst of volatility, the investors who make the greatest profits are not long-term or short-term investors, but those who are good at grasping the wave band operation. Since it is a band operation, investors cannot buy stocks every day and have stocks every day.

4、 Calm mind: In the securities market, investors have already decided whether to make a profit or a loss before buying a stock, but they still have to wait for reality to come. When reality arrives, whether it is profit or loss, it will cause changes in investors' emotions. When this emotional change is not significant, investors can still analyze rationally; When this emotional change is too great, investors will become emotional and unable to make profits according to any strategy. This is the biggest enemy of retail investors?? Not the banker or the market, but oneself.

5、 Skilled at summarizing: Ordinary people say, 'Failure is the mother of success.' However, many individual investors lose their rationality and blame others for their failures, and are unable to calmly summarize the reasons for their failures and fight again with strength.

6、 Resolutely stop loss: Stop loss is a difficult issue for retail investors. As soon as the price rises, the expected value increases, while when it falls, there is a mentality of not selling at high levels and being unwilling to sell at low levels. Once trapped, it becomes more difficult to cut flesh and escape. This is also the main reason for the failure of individual investors. Therefore, investors must be prepared to face risks and have the ability to manage them when choosing investment strategies that avoid risks.