Who is our enemy? Who are our friends? This question is the primary question of the revolution. All revolutionary struggles in China in the past have achieved very little results. The basic reason is that they cannot unite with real friends to attack real enemies.
Anyone who is proficient in party history knows that this is a famous conclusion made by a great man of a generation, which has strong guiding significance for the Chinese revolution.
Whether it is a revolutionary struggle, or working in a unit or undertaking a career, we must distinguish what is the most important and the first issue.
At the same time, in stock trading, or stock market investment, we must also distinguish what is most important? Who is first in line?
Many people must think that in the stock market, stock selection ranks first.
Today is February 11, 2023, which is Saturday. Yuan Sheng was idle at home when he received a call from Zhang Sheng, who asked this question.
Yuan Sheng said: Is stock selection the first priority? Let me tell you a story first:
After the Autumn Harvest Uprising in 1927, when the Red Army first came to Jinggangshan, there were only a few hundred people. By the time the fifth counter-encirclement and suppression campaign began, the Central Red Army had grown to about 100,000 people. It can be said that the process from a few hundred people to 100,000 people is the rising stage of the Central Red Army. During this stage, many famous Red Army generals such as General Manager Peng and General Lin were created. At this stage, many famous Red Army generals continued to win battles and became famous.
After the failure of the fifth counter-encirclement and suppression campaign, the Central Red Army was forced to shift its strategy (called the Long March in history). From 86,000 people at the beginning, by the end of the Long March in October 1936, only about 10,000 people were left in the Central Red Army. The period from the five counter-encirclement and suppression campaigns to the end of the Long March was a difficult period for the Red Army. Even the most famous generals, Generals Peng, Lin, and Su, could only retreat while fighting... ... This stage can be called the retreat (descent) stage.
Yuansheng continued: Opening the daily K-line of Ningde Times, we will see that it was 105.01 yuan on March 23, 2020, and then continued to rise slowly, to 692 yuan on December 3, 2021. This process is the rising stage of the Ningde era. Anyone who buys it during this rising stage can easily make money. You can make money if you stick to it, and the longer you stick to it, the more money you make.
Let’s look at another case: Huaxia Ophthalmology was listed on November 7, 2022. The transaction returns that everyone could see in the evening showed that institutions bought 428 million yuan. It can be said that for a small and medium-cap stock with only 56.34 million shares in circulation, it is very rare for institutions to buy so many shares on the first day, so the speculators are very excited and buy one after another on the second day... .As a result, Huaxia Ophthalmology fell from 74.77 yuan to 55.88 yuan before bottoming out.
It took 14 trading days for the price to fall from 74.77 yuan to 55.80 yuan. This process is the descending channel. In the descending channel, it is very dangerous for anyone to buy. To put it bluntly, at this stage, whoever buys it will be ensnared. Of course, in this process, it may rise on one day or two days, but it cannot change the overall pattern of decline. This process is equivalent to the Red Army's Long March. Mr. Lin and others also won partial battles, but they could not change the overall pattern of the Red Army's need to retreat.
Huaxia Ophthalmology started from 55.80 yuan on November 28, 2022, and rose to 90 yuan on January 20, 2023. This is the rising stage. At this stage, it is easier for anyone who buys Huaxia Ophthalmology to make money. Even if it is temporarily trapped, you can make money if you stick to it.
Zhang Sheng lamented on the phone: "The same stock, bought at different stages, will have different fates. It shows that it is very important to look at the general trend and the overall situation. This is the first issue in stock trading!"
Yuan Sheng: "The market has a general trend. For example, the Shanghai Composite Index was 2437 points on November 20, 2014, and reached 5178 points on June 12, 2015. This process is the rising stage of the market. In this stage, it is easy to pick stocks. , and it’s easy to make money.”
"The sector also has the general trend of the sector. At a certain stage, the sector is rising, fight bravely; at a certain stage, the sector is falling, stay away from it. If you are unfortunate enough to buy it, you can retreat first, wait until it really bottoms out, then buy it back and enjoy it. Its rising stage." Yuansheng said.
Zhang Sheng said: "No wonder there is such a famous saying in the stock market: follow the general trend and make big money!"
Yuan Sheng: "My dear, in the rising sector, only by buying the best stocks can you make the fastest and most money!"
Zhang Sheng: "I learned something useful again! In the past, I always thought that stock selection was the first priority. I always thought that if I picked stocks correctly, I could make money. Now I understand: going against the general trend is too difficult. For example, on the second day of listing, I bought Huaxia Ophthalmology for 74 yuan. The process of it retreating all the way to 55.8 yuan was too uncomfortable. If you are trapped in the stock market for a long time, constantly trapped, and the full position is trapped, the pressure must be very high, and it can easily affect your health... .. Even if you can make money by investing in stocks in this way through long-term holding, the cost is too high and it is not cost-effective.”
Yuansheng: "Yes, so smart money and smart people should try to choose stocks in the rising stage and avoid stocks in the declining stage. Only in this way can it be easier to make money by stock trading."
Zhang Sheng: "I have a question. The market has the trend of the market, the sectors have the power of the sectors, and the individual stocks have the power of the individual stocks. It is too difficult to judge in advance. How to deal with it or choose?"
Yuan Sheng: "Making money is one of the two most difficult things in the world. Making money in the stock market is even more difficult. In fact, it is very difficult for you to be outstanding in any industry. For example, 70% of people can sing, but, There is a famous singer who got 600,000 yuan for singing a song. Can we do that? There are executives whose annual income is more than 100 million yuan. What is our annual income? Some people have been admitted to MIT, Harvard, Tsinghua... ...What university did we get into? So, in any industry, everyone can only do things that suit their own abilities."
"In the stock market, on the surface, there are many opportunities. There are dozens and hundreds of stocks with daily limit every day. Some stocks are very good. 99% of investors cannot make money. It is normal, just like 99.99% of people cannot sing a song. Earning 600,000 yuan from a song cannot make an annual income of hundreds of millions or tens of millions of yuan. Most people study hard for 6 years in elementary school, 6 years in middle school, and 4 years in college. After studying for 16 years, their annual income is Tens of thousands of yuan, more than one hundred thousand yuan, this is the fate of most people, and it is difficult to change. This is competition in life, and this is the result. Most people can only accept this result.
"The competition in the stock market is more intense because it is a big competition among 210 million investors. How much time do you spend picking stocks? Studying the K-line... Take a look at what the chief rudder sees every day in his stock trading career. Or it takes 18 hours to review stocks, how many hours did you spend? Everyone’s ability to comprehend, summarize, and execute is different, and the results will naturally be different." Yuan Sheng said.
Zhang Sheng: "Yes, if you are willing to give up, you will get something if you give up! Whether it is studying, stock trading, or working, you need to be willing to spend time and know the key points to be outstanding; at the same time, you must be willing to give up stocks that you do not understand. , and then I buy stocks that I can understand. Today’s call with you made me understand: In the stock market, the importance of looking at the general trend is the first. This general trend has the general trend of the market and the sector. The general trend, the general trend of stocks...stock selection is the second priority! Thank you, Yuan Sheng, for letting me learn something useful again!"
Then Yuan Sheng and the two talked about other stock market matters...
(To be continued)
