As long as we have low-priced potential stocks in our hands, no matter how the main institutions and main players fluctuate, wash up, lure, or torture, we will not give up until we reap big profits while sitting in the "sedan chair". Once you have the patience to hold shares like this, you can engage in a battle of wits and courage with the main institutions and main players, calmly deal with them, and be proud of the world.
How to cultivate resolute and decisive determination?
However, any operational technique is most afraid of going to extremes and getting stuck in sharp corners. For example, when advocating value first and rational investment, some people come forward to attack short-term speculation, which is actually incorrect.
Advocating medium - to long-term investment does not mean advocating holding onto stocks tightly. If one does not know how to adapt and only knows how to hold onto stocks tightly, in the end, the returns may not be very good, and it is even possible to hold onto good stocks. For example, the stock of Guangdong Electric Power Group ranked first on the Guangzhou Tax Glory List in 2000, with a tax revenue of over 200 million yuan. From a fundamental analysis perspective, this is a stock of considerable quality and one of the few stocks worth holding in the medium to long term with investment value.
Once upon a time, due to the strong winds of the internet, people flocked to so-called internet stocks and high-tech stocks, while sneering at the well-established performance stocks in traditional industries. However, after the release of the mid year performance announcement in 2000, the excellent performance and large proportion of distribution plans of Guangdong Electric Power not only shocked and embarrassed many people who looked down on it, but also made many people sit up and have to re-examine its investment value and speculative opportunities.
In fact, when the market began to closely monitor it again, it was discovered that the stock's trend had been quite stable and the increase was also quite significant. From the perspective of valuing performance, it is definitely much cuter than those internet stocks that only burn money.
For medium to long-term investors, holding onto stocks like this is undoubtedly a good operational strategy. However, persisting in holding onto stocks does not mean being inflexible, nor does it mean holding onto them tightly. Instead, it is necessary to closely monitor and deeply study the stock, and based on changes in the market, buy low and sell high, repeatedly making fluctuations.
In short, don't just buy and leave it aside, just wait for the year-end dividend and stock distribution to settle.
Actually, even if it's like Warren? Buffett, who advocates value first and values investment philosophy, will not hold onto stocks like Coca Cola indefinitely, but instead speculate back and forth to earn profits from price differences. So, the so-called persistence in holding onto stocks for a long time is not about holding on tightly, but rather has a deeper meaning. On the other hand, most of the stocks on the Chinese stock market are not worth holding for the long term, and the operating conditions of listed companies are really worrying. There are a large number of listed companies with "one year of good performance, two years of losses, and three years of ST", how can people feel at ease? Their growth and stability are truly questionable, and their so-called medium - to long-term investment value is even more questionable.
The phenomenon of "one year of excellent performance, two years of losses, and three years of ST" is constantly emerging and common, greatly dampening investors' enthusiasm for shareholding. It is completely understandable to prioritize quick success and quick profits over speculation.
In the Chinese stock market, most small and medium-sized investors belong to amateur investors. Their knowledge of securities trading is not comprehensive, and their practical operation skills are not strong. Therefore, making medium and long-term investments is their best choice, and holding stocks has become an essential operating procedure.
However, due to misunderstandings about medium - and long-term investments, or errors in stock holding methods, many small and medium-sized investors often become a group of deep investors, "trading stocks and becoming shareholders". This is undoubtedly a sadness.
So, as small and medium-sized investors in the stock market, we should be particularly vigilant about the problem of hoarding "good stocks". For those so-called good stocks, we need to assess the situation, seize the most favorable timing for shipment, resolutely and decisively safeguard the fruits of victory, and ensure safety. This is the wise shareholding strategy.
Small and medium-sized investors have limited funds and abilities, so they should be alert and vigilant. They should not believe in the so-called benefits created by major institutions and main players for the sake of selling. Instead, they should apply the opposite theory in a timely manner and act when necessary. Remember, market trends often emerge in despair and die in joy. When the main institutions and players strive to create a frenzy and a joyful atmosphere, it is the time when the market is about to face a crisis. This is the national condition of China, which has been the case for many years.
Therefore, according to the opposite theory, when the so-called good news comes, we should resolutely and decisively take the opposite direction of action, clear our positions decisively and leave. Only in this way can we avoid blocking the so-called good stocks and becoming a group of deep traders.
This statement is not intended to promote speculation, but rather the nature of the current Chinese stock market determines that the operational strategy of small and medium-sized investors can only be like this, survival first. Only by protecting their principal from losses can they further play in the stock market. Development is the fundamental principle. Although there are people calling for the protection of the interests of small and medium-sized investors every day, and this voice is really cute, it is not something that can be achieved overnight to truly implement it. Therefore, it is crucial for small and medium-sized investors to enhance their self-protection awareness.
So, in order to preserve their hard-earned money as much as possible, small and medium-sized investors should be more cautious, seize the opportunity, and make a move when necessary. I've been holding onto it for years without letting it go. As the old saying goes, take action when it's time, don't hold onto the 'good stocks'.