Can ordinary people really achieve financial freedom through stock trading? What
Yes, but both luck and strength are indispensable.
In fact, in life we can see many stock investors. In the hearts of most investors, they will wonder whether they are suitable for stock trading, and whether they have the talent for it. How to solve the problem of making small profits and incurring large losses in stock trading?
If you want to trade stocks, you must first master several basic skills.
First, you must continuously learn professional knowledge, understand finance, economics, and the market, and also be able to conduct technical and fundamental analysis. If you lack these skills, you will be like a headless fly, bumping around in the stock market, easily following the crowd, listening to rumors, and finally losing everything.
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Second, cultivate strong psychological quality and stress resistance. Stock trading is like a roller coaster, with huge fluctuations. If you have poor psychological quality and panic at the slightest market movement, you will definitely make wrong decisions. Like my brother, as soon as he sees the stock falling, he quickly sells it, and then regrets it after it rises, and finally ends up with nothing.
Third, strengthen risk control ability. You need to know when to buy and when to sell, and also formulate a reasonable investment strategy and risk control plan. Some people, as soon as they see high returns, become envious and reckless, disregarding all risks, and ultimately end up losing badly.
Fourth, time and energy are also a problem. Stock trading requires a lot of time and energy to study the market, collect information, and make decision analysis. If you don't have this time and energy, it's better not to join the crowd. Like my neighbor, Mr. Wang, who is busy with work, picking up his children, and cooking every day, he has no time to watch the market, and as a result, he bought a few stocks and left them unattended, finally losing even the principal.
Fifth, investment also requires a long-term mindset. The fluctuations in the stock market are very easy to induce short-sighted behavior and make it difficult to adhere to long-term investment. However, long-term investment is the key to obtaining stable returns! If you always want to make a lot of money in a short period of time, it will often backfire. If you have finally found a potential stock, bought it, but see other stocks rising faster and chase them, the result is predictable.
So, stock trading is really not that easy. If you want to do well in the stock market, you must master the basic skills.
To stand firm in the stock market, the foundation is very important.I've noticed that many people start trading stocks without fully understanding candlestick charts, which is why others have become stock market experts while you're still losing money.
Here's a summary of the basic knowledge of candlestick charts, which I recommend you save for future reference. It's full of valuable information.
Candlestick charts, also known as "Yin-Yang line charts," allow us to record the market conditions of a day or a certain period in full. After a period of trading, the stock prices form a special area or pattern on the chart, and different patterns show different meanings. In layman's terms, it records the changes in the stock market over a certain period, composed of the opening price, closing price, highest price, and lowest price.It seems that the text you want to be translated into English is missing. Please provide the text or content you would like to have translated, and I will be happy to assist you.The following candlestick technical indicators are of some reference significance for beginners. The market is changing at any time, and investment is risky, so be cautious when entering the market. What is the most important thing about stock trading? There are the following points.
The first point is position, and it's important to say it three times: position, position, position. You need to distinguish whether you are in a bull market or a bear market. In a bull market, you can increase your position; in a bear market, you can rest or trade with a small position. This point is the most important and must be firmly remembered.
The second point is the rhythm and the sector. The current capital in the stock market is not enough to allow all stocks to rise universally. So what? Sector rotation is the norm. For example, in a bull market, the first to rise are usually securities stocks and financial stocks. Then it's cyclical resource stocks, such as coal, steel, and non-ferrous metals. Finally, it's the two barrels of oil, Sinopec and PetroChina. At the end, it's the bank stocks to rise to the limit, and the party is over. So this rhythm and rotation are extremely important, don't do it in reverse. If you make a mistake, maybe others have already made 50%, and you may not even have made 10%.
The last point is the selection of individual stocks. After determining the sector, you need to hide in advance. How to choose individual stocks at this time? Generally speaking, you need to look at the overall market situation. If recently, the large-cap stocks and blue-chip stocks are active, then you need to choose blue-chip stocks in this sector.
If recently, small-cap stocks and small and medium-sized innovation stocks are in a good overall market, then you need to choose small-cap stocks. So the above three points are the important things to remember in trading, and the first is the most important, the position. The second is the next, and the third depends on fate.
Next, I will share with you 7 simple and practical stock trading tips.
Skill one: On the issue of stop-loss and take-profit
The setting of stop-loss and take-profit is particularly important for non-professional stock investors. Many retail investors will set a stop-loss, but they don't take-profit. Today, it is necessary to discuss with everyone. Everyone knows about setting a stop-loss, setting a fixed loss rate, and strictly implementing it when it reaches the position. But taking-profit, most retail investors don't. Why is taking-profit important?
For example, a friend bought AnCai High-tech (600207, buy) at 20 yuan, and I told him to set a take-profit at 26 yuan. He didn't sell it. At 25 yuan, I told him to sell, and he said he didn't sell at 26, and he wouldn't sell at 25, and he would sell it at 30. In the end, he cut his meat at 11 yuan. If a take-profit was set, the tragedy could be avoided. Those who have recently chased core assets and large blue-chip stocks should also set a take-profit. How to set a take-profit? For example, if you buy a stock at 10 yuan in line with the hot spot, and it rises to 11 yuan, you set a take-profit at 10.4 yuan. Generally, the short-term washing of the market will not wash you out. If the price falls back to 10.4 yuan at 11 yuan, you immediately take-profit. Although you earn very little, it reduces blind action. After the stock price reaches 12 yuan, your take-profit is raised to 11 yuan, and when the stock price reaches 14 yuan, the take-profit is set to 12.8 yuan, and so on. In this way, even if the market washes and unloads, you can profit calmly and exit.Skill Two: Don't hope to buy at the lowest point, don't dream of selling at the highest price
Some friends always want to buy at the lowest price and sell at the highest price, which is impossible. People who have this idea are not experts. Only the market makers know to what extent the stock price may rise or fall, and the market makers cannot completely control the trend, let alone everyone else. In the past, I also hoped to reach this state, but now I have long changed my concept. I don't even look at stocks that have hit a new low, as there may be a new low below the new low. I only buy individual stocks that have risen by about 10% from the bottom, and they must enter the rising channel, which often allows me to catch the most profitable part.
Skill Three: The issue of volume matching
Some stock commentators always talk about the increase in price and volume. After years of summarizing, stocks that set new highs without volume should be paid special attention to, while stocks that set new highs with abnormal volume should be cautious. For short-term stocks, those that fall back with increasing volume should be a good opportunity for rebound, of course, excluding stocks that fall to the limit and stocks that fall with abnormal volume at the top. Therefore, in terms of blue-chip stocks recently, those that have been rising continuously without much volume are safer, while stocks that keep increasing in volume should be on guard.
Skill Four: Be good at association
What is association? What I want to say most is, based on a certain reflection of the market, expand the association to obtain short-term profits. Generally, mainstream leading stocks are often quickly pulled to the daily limit by hot money, and short-term experts often can't catch up. At this time, association can often give you unexpected surprises. Take a previous example: At that time, in the morning, China Unicom was suspended, and China Unicom Guomai rose by 5% at the opening, and then quickly hit the daily limit. At this time, using association, who else in this market has a close relationship with China Unicom? Accumulating little by little is the principle. Association is not only suitable for short-term, but also for medium and long-term linkage, you can choose to invest in the same sector.
Skill Five: Learn to be empty
Many folk experts are very good at using funds for short-term operations such as chasing rises and killing falls, and sometimes they can obtain high returns. However, for non-professional stock investors, it is difficult to watch the market every day, and it is also difficult to track the hot spots every day. Therefore, in stock operations, not only should you buy stocks in the rising trend, but also learn to be empty. When you feel that the stocks in the market are difficult to operate, the hot spots are hard to grasp, the vast majority of stocks have a large drop, the stocks on the rise list have a small increase, and the stocks on the fall list have a large drop, it is necessary to consider being empty, which is very suitable for non-professional stock investors.
Skill Six: A sharp drop is a major opportunity
A sharp drop is divided into a sharp drop in the overall market and a sharp drop in individual stocks. The opportunities for a slow decline are much less than those for a sharp drop, and a sharp drop often presents major opportunities. In these years of stock trading, the overall market often has 2-3 sharp drops every year. A sharp drop is often caused by a major bearish or accidental event. A sharp drop that occurs at a relatively high point of the overall market should be treated with caution, but for a sharp drop that occurs after the main decline wave or a long period of slow decline, you should pay attention to the stocks, because many opportunities for bull stocks are created by falling.Skill Seven: Preserving the Fruits of Victory
Many netizens are experts at making profits in a bull market. A friend recently made a profit of over 50% in the blue-chip stock market, but he admits that he is not an expert because he is a short-term trading expert. In a volatile market and a bear market, he often gives back the fruits of victory obtained in the bull market, working in vain for the brokerage firms. How can one preserve the fruits of victory? In addition to setting stop-profit and stop-loss points, accurately grasping the overall trend and timely taking a break to observe the market is also very important. How to preserve the fruits of victory in a bear market? After years of experience, the method to preserve the fruits of victory in a bear market is to always track a few stocks, constantly try virtual buying and selling according to market conditions, and not attempt to buy at the lowest historical price. Only after the upward trend is established should one enter the actual trading operation.
Stock trading is like this, always facing continuous challenges. Excitement comes one after another in the early stage, and in the middle stage, one climbs over one high hill after another, until finally reaching the destination, where one can enjoy the scenery they desire. So if you plan to be in the stock market for a lifetime, you must maintain a calm and rational state. Those who can persist to the final destination will find that it can satisfy all your imaginations. However, there is one major premise here, which is continuous self-improvement.