What kind of personality is suitable for stock trading?
The farmers mentioned here are not peasant entrepreneurs, nor modern farmers, but the most primitive farmers, who plant spring crops and harvest autumn crops, work at sunrise and rest at sunset.
Because the stock market goes round and round, it takes such a route of planting in spring, harvesting in summer and storing in winter.
In spring, the spring is chilly, and at first glance it is very cold. It's like the end of a bear market. After a severe winter, I don't know when spring will come, and what is more desperate is that spring is chilly.
However, the duck prophet in the spring water heating, the grass color is far and near, but there is nothing. Ducks in green water and buds under yellow hay are like pioneers in the stock market rebound. Their appearance suggests that winter is a spent force. As long as the climate gets warmer, they will bloom immediately in spring, and farmers will sow in spring.
Farmers sow seeds, just like investors open positions. If they plant early, the temperature will be too low and they will freeze to death. Plant late, miss the solar term, and the crops will not grow well in the future. Shareholders open positions, buy early, continue to fall, and if they can't stand it, they have to cut their meat; I bought it late, and it went up a lot. The cost is much higher than the market, and my future profit and psychology will be affected. And the seeds sown in different periods are different. It's like investors opening different stocks at different times.
When the seeds are sown, farmers will start fertilizing, watering, weeding and killing insects, and take good care of the crops. During this period, the temperature rose, the sunshine was abundant, and the crops soared like death. Although there are sometimes natural disasters such as rainstorm, tornado and hail, after the storm, the injured crops will continue to grow rapidly, which will be a vibrant and lush scene. This is like the main rising wave of the stock market, mainly rising, with a relaxed and cheerful rhythm. Adjustment is like summer rain, which comes and goes quickly. Although it is sometimes a rainstorm (one day plummeting), it will be sunny the next day (the sun will rise the next day and recover the lost ground in a few days).
Slowly, the fruit is ripe and autumn is coming. At this time, although the temperature is still very hot, such as autumn tiger, it is already cold in the morning and evening, and the fiery atmosphere has quietly changed. The farmers are ready to harvest the grain. This is like a stock market that has reached its peak: although it is still booming, some stocks, especially leading stocks, have stopped, or the driving force for rising, such as trading volume, is getting smaller and smaller as the index hits a new high, and the market begins to show fatigue. At this time, investors will also sell their own shares. In late autumn, it seems that the head of the stock market began to fall. If we don't harvest in time, the first frost and rainy days in autumn will rot the fruits in the fields and affect the harvest.
The same is true of stocks. If you don't lighten your position in time, negative decline and wide fluctuation will greatly reduce your income. It's raining, just like a gloomy autumn. When will it end? After a year of hard work, farmers have worked hard and the land needs to be fallow. Winter is a season of rest and rest. The same is true for investors, whose stocks have soared and need to find their own position again.
The cold snow and ice in winter is very beneficial to the land. When the stock market plummets, the value of stock investment will reappear. Although there is Koharu in winter, it will be stifled by more severe climate, just like a bear market rebound, and it will die at any time. In winter, farmers should either plough deep into simple farming to conserve their physical strength, or renovate the land to make it more fertile, and never sow seeds too early. Even if they do, they will plant some crops that can resist the cold.
At this time, investors can either enjoy leisure travel or learn to recharge and improve their level. Even if you want to build a position, you should learn from farmers and buy some stocks that are less affected and have strong anti-fluctuation ability.
As soon as winter is over, farmers will stretch their muscles and prepare for a big fight. When the bear market is over, investors should also be full of energy to welcome the arrival of the Year of the Ox. Therefore, winter or bear market is a time to recharge your batteries. Those who don't know how to rest and those who have no patience will not overcome the cold until spring blossoms.
In some years, the weather may be favorable and the harvest is good; In some years, there are many natural disasters and there may be no harvest; This so-called "big year" and "small year". It's like the stock market. Under the background of strong growth of the real economy, some enterprises have very high profit expectations and abundant market liquidity, which will develop into a once-in-a-lifetime bull market. Some enterprises may have poor real economy and are likely to continue to deteriorate, but abundant liquidity has brought a round of "not bad money" market; Some may be stock market speculation opportunities brought by unexpected profits of enterprises under the condition of general or tight liquidity.
For another example, some winters are freezing, and some winters are basically not too cold. It's like a bear market. Sometimes everyone thinks that the stock has fallen to the floor price. I didn't expect there was a basement under the floor, and there was hell under the basement. There are actually 18 floors in hell. And sometimes it may just be a normal drop in standards.
Therefore, I think it will be very powerful for farmers to use their farming techniques for stock trading, sow in time in spring, wait patiently for seeds to germinate, grow, blossom and bear fruit, and harvest in time, and then patiently survive the cold winter and wait for spring to come again. Of course, the spring, summer, autumn and winter in the stock market are not as distinct as those in nature, so it is very difficult and complicated to judge.
If you want to be a successful stockholder, you must learn to establish a suitable system to judge the season of the stock market.
If you want to try, I'll give you some advice:
1, keep reading and studying a lot. Books on stock investment, as well as some basic economics, accounting, management and so on. Keep reading and studying a lot, perhaps this knowledge may not be needed, but the change of people's way of thinking is subtle.
2. Fully understand your own situation. For example, when the savings rate is not high, you should put more energy into your career. In addition, you need to set your own expected rate of return and risk tolerance, and allocate funds according to your own situation.
3. Understand the industry and company. Understand the industry knowledge of listed companies, the company's profit growth point, and the relationship with upstream and downstream. Learn to read financial statements and mine information from them.
4. Sum up experience and establish an investment system suitable for your personality. Stock investment is for continuous profit, so it is very important to establish your own investment system. You should be clear about your stock selection principles, trading timing and stop loss and take profit.
5. Think independently and don't rely on others. Always think independently and always listen to others, and you will never make progress. Moreover, many so-called "experts" are talking nonsense, deviating from the market and following them will only lose money.