1. Stock trading is a matter of seconds and minutes, so understanding the trading hours of the stock exchange is also very important. Currently, there are only two stock exchanges in China, Shanghai and Shenzhen, and they are open for operation from 9:30 am to 11:30 am and from 1:00 pm to 3:00 pm on weekdays. As for other time points, they are in a closed market state. Therefore, the routine operation of stock trading is to make plans during the closed market and continuously trade and adapt to changes on trading days.
2. The first step in learning to trade stocks is to understand stocks and the stock market. After all, if you don't even understand the specific concepts, don't think about the subsequent entry and advanced stages. The essence of stock trading is to rely on data analysis and operation to carry out a kind of investment, and the essence of stocks is a certificate of ownership, so everything about it is closely related to the issuer. If you want to play A-shares, you must first understand many enterprises in various fields in China, which is the foundation for trading.
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3. The most important thing about stock trading is the mentality. Only a small part of people can make money in the stock market, and 90% of people lose money from the beginning to the end. If you really want to learn about stock trading, you should first look at some failed cases, see how others go bankrupt, jump off buildings, and lose their families due to stock trading, and then think about why you are trading stocks. If you can still be determined after that, continue to look at the specific methods.
3. Entering the stock market requires opening an account first, as it is now possible to operate directly through mobile apps, which is more convenient. You only need to download and install the app, fill in the information, and pass the face recognition to successfully open an account. What you should pay more attention to is the selection of the broker, because the commission and services of different platforms are different. If you are deceived by some small organizations with insufficient funds, it will have a great impact on the early transactions. So, newcomers are better off choosing large organizations such as Guotai Junan and Orient Securities.
After opening an account, there is no need to rush to trade. Opportunities in the stock market are everywhere, and you don't have to worry about missing anything by entering a few days late. The most important thing to do is to familiarize yourself with the interface and functions of the app. When I first downloaded the mobile app, I spent a day understanding where to find information, where to trade, and solving trivial matters such as binding cards. After that, it became much more convenient to use.
5. After officially starting stock trading, you can learn to look at the K-line chart, which is the embodiment of the rise and fall of the stock market and the foundation for anyone to analyze the stock market. The first thing to understand is what the different attributes of the K-line represent, such as red for rise and green for fall, the upper half of the positive line is the closing price, and the negative line is just the opposite. Only after understanding these can you further learn specific analysis skills.
Although there is no absolute rule for the changes in the K-line chart, most of the time it conforms to some fixed experience. The different combinations between the negative and positive lines and the changes in the overall trend of the image all contain some important information. So, before reaching the level of independent analysis, the best way is to memorize some patterns and gradually become familiar with them in the actual operation process, so as to avoid losses to a greater extent.
6. If you want to take a course, you must choose one that is closely related to actual combat, and those that only talk about theory can provide very little help. For example, I learned stock trading skills through Jiang Qi's stock trading practical course, which is also a presence that beginners can use to avoid pitfalls in the early stage. After all, every analysis method shared in it has specific cases as examples. When I listened, I could clearly feel that the speed of understanding was very fast, and this efficiency and method are something that rigid books cannot help me achieve, and even some so-called experts cannot reach this level.In addition to this, Jiang Qi has opened the door to the study of stock trading theory for me, allowing me to start to be exposed to some theories and viewpoints from abroad. What it contains is not only practical skills, but also many foreign masterpieces that have been translated and adapted. The original intention of these masterpieces may not be very suitable for the Chinese stock market, but when shared with me, the degree of sinicization is obviously very deep, so it can provide me with some valuable guidance.
After listening to the class, there are two choices, each with its own advantages. The first is to use the method of simulated stock trading to test the theories and skills learned before. The advantage of this is that there is no need to pay any cost, and there is unlimited trial and error. As long as the number of operations increases, naturally, you can have rich experience.
However, there is a biggest problem that the mentality involving real funds is absolutely different. In the simulation, everyone can maintain absolute rationality, but when they really enter the stock market, they may make some strange operations due to nervousness, so choosing this method also has risks.
The other method is to directly enter the stock market for practice. The speed of familiarizing with the theory through this method is much faster than simulation. After all, pressure has always been able to be transformed into motivation, and the experience absorbed from the actual combat belongs to oneself 100%, without spending more time to slowly understand, these are the advantages of directly entering the market. However, as a rookie, even if the theory is learned well, it is almost inevitable to lose money, so you must consider the corresponding cost before choosing this path.
When gradually transitioning from a novice to an experienced trader, I will start to look at some stock trading related websites and forums. The reason for waiting until this time is that newcomers have a relatively poor ability to identify information, which is not suitable for reading too much unofficial content. After a period of practical operation, at least they will not make low-level mistakes, and at this time, the subjective information on the forum can play a greater role.
Firstly, not everyone has the ability and necessity to directly participate in stock investment. Indirect investment in the stock market can also be achieved by purchasing funds, trusts, or even entrusting others to manage finances. If you do not have the following three abilities, I suggest you do not enter the market.
Part.1
What abilities are needed for stock investment
A very strong desire and ability to learn: For most people, stock investment is a strange field. Before entering the market, you need to learn what stocks are, how to open an account, and which broker to choose. After entering the market, you need to learn professional terms such as price-to-earnings ratio, price-to-book ratio, and current hand; after being in the market for a period of time, you also need to understand hot sectors and concepts such as 5G, edge technology, network slicing, and ubiquitous power Internet of Things, so stock investors also have another title, researchers!In addition to a strong desire to learn, a certain level of learning ability is also necessary. If your math grades have been failing for a long time, you may find it very difficult. It is recommended that you read "Securities Investment Analysis". If you can easily understand it, you can start learning. If you find it very boring, let's take a look at funds.
Scientific cognitive ability: Investing in the stock market is a very vague thing. Without insider information, any prediction is just a probability, and no one can guarantee an increase.
Stock price changes are affected by various factors such as fundamentals, technical aspects, rumors, hot news, weather of the day, and software smoothness. Because there are too many factors, it is difficult to determine the reasons for the rise and fall of stock prices. Once you give up the pursuit of investment logic, stock investment is easy to become a kind of metaphysics.
Confidence: Confident people are not necessarily successful, but successful investors must be confident. Why do you always sell at the lowest point? Why are you prone to panic? Why have you never held a stock for more than a month? Why can you never escape the circle of selling a little bit and resisting a little bit? The core reason is the lack of trust in your own choices and operations.
Part 2
What knowledge needs to be learned
In the eyes of ordinary investors, stocks only have two knowledge points: buying and selling. Selling stocks does not need to be learned, everyone can do it, so only need to learn how to buy stocks. This cognition is very ignorant. If represented by a diagram, a complete stock investment process includes 8 links: information collection, analysis, determining stock selection strategy, stock screening, buying, holding monitoring, and selling, all of which are indispensable.
Learn to collect information: Recall, where does your main information come from? Is it Weibo hot search? Or the morning news in the circle of friends? Or the news pop-up window in the lower right corner of Tonghuashun?Financial investment is the field with the strongest timeliness. You cannot wait until hot events have made it to the top of Weibo's hot search list before investing; otherwise, you will become the one taking over the position. Therefore, it is very important to acquire the latest domestic and international financial and political news in the most convenient and accurate way.
During my university years, in order to obtain news information more timely, I followed more than a hundred news media on Weibo, keeping track of market hotspots at any time. This not only improved the efficiency of information collection, broadened my horizons, but also cultivated a good sense of news acuity, enabling me to quickly discern which information has investment opportunities, bringing considerable returns to stock investment.
Developing a good habit of reading information is very important, as it is the first step to help you achieve long-term stable excess returns.
Learning information analysis: The same information, different people have different interpretations. People with profound thoughts often have unique and accurate points of view.
For example, when Ping An Insurance of China releases its annual report, ordinary investors believe that the growth rate of revenue and profit has declined, which is bearish, and the stock price will fall; investors with a little stronger analysis ability believe that the overall growth rate of the insurance industry has declined, Ping An Insurance's annual report performance is in line with expectations, neutral, and the stock price remains unchanged; and those with excellent analysis ability will carefully review the annual report and conclude that the decline in Ping An Insurance's net profit growth rate is mainly due to the stock market decline, which affected investment income. Its emerging life insurance business is growing rapidly, its industry status has improved, and it should be valued higher, which is bullish and should be increased.
Therefore, the strength of analytical ability directly determines the accuracy of investment judgment. This ability can be learned. You can communicate with outstanding people, read high-quality articles, and learn from securities research reports.
Learn stock analysis: As mentioned above, there are many factors that determine the fluctuation of stock prices, and the influence of each factor on stock prices varies in different periods. The purpose of formulating investment strategies is to find the main factors affecting stock prices and predict the trend of stock prices based on the main factors. Overall, the fundamentals and technicals have the greatest impact on stock prices.
Technical analysis: Technical analysis is the easiest to get started with among all knowledge. All investors can talk about theories such as divergence, moving average breakthrough, etc. Those who are a little more advanced will talk to you about indicators such as KDJ, BOLL channel, chip distribution, and main force control. If you are only satisfied with the application of a few indicators and rely on a few indicators to make investment decisions, your investment ability will stop here.
If you prefer technical analysis, your level should at least catch up with the simplest quantitative trading models. Technical indicators include categories such as reversal indicators, entry indicators, trend indicators, break indicators, selling indicators, and swing indicators. Each indicator has different application methods and limitations. You should at least establish a complete stock selection indicator system to be considered a technical analysis investor. If you use the KDJ indicator for trend analysis, you can close the screen and go home to farm.Stock market investment, the probability of success for winners must be higher than that for losers. The probability of winners catching bull stocks, holding bull stocks in heavy positions, and stopping losses on bad stocks in time will all be higher than that for losers.
Stock market investment is a test of a person's ability to analyze and judge probabilities. A person's ability in this area basically determines the success or failure of their investment, which is similar to the logic of betting on the World Cup.
In stock market investment, both value investment and trend investment pursue the probability of success and test a person's ability to judge probabilities. Value investment is based on the comparison between the company's intrinsic value and the current stock price. When the analysis believes that the price is lower than its intrinsic value, the company's future price is likely to reflect its intrinsic value, so it chooses to buy. Trend investment starts from the market investment behavior, and from the perspective of inertia, the probability of the stock price running according to the trend is high.
The ability to analyze and judge probabilities determines the success rate of stock trading, but it is indeed difficult to analyze and judge probabilities. Here are a few tips to quickly improve the ability to judge probabilities.
There are two ways to improve the success rate of judgment: one is to strive to improve one's own analytical ability; the other is to find ways to reduce the difficulty of judgment, that is, to look for relatively easy opportunities to judge. Buffett once said, "Our success is because we focus on discovering and crossing the 1-foot hurdles, not because we have the ability to cross the 7-foot hurdles."
The tips mentioned below are to help everyone discover and cross the 1-foot hurdles.
1. Big extremes, big transactions
It is extremely difficult to judge the future direction of mediocre markets because the probability of rising and falling is basically fifty-fifty. However, when extreme markets appear, there is a high probability of a turning point, which is relatively easy to judge. The larger the extreme, the easier it is to judge. If you think you are not good at identifying extremes, wait for the most easily judged extreme to appear, such as after a huge drop in the index, followed by a continuous sharp decline, or a continuous sharp decline in the short term.
2. Leading sectors, leading stocks
The probability of leading sectors and leading stocks becoming big bull stocks is high. The performance of leading stocks in a round of market is likely to be good, and the probability of leading stocks encountering black swans is relatively small.3. Turning Pain Points into Sweet Spots
Stocks that are no longer in pain (except for mediocre stocks) have a higher probability of rising than falling when viewed over a long period.
4. Swimming Only in Summer
Invest in the stock market only during a bull market, where the probability of making money is high. Even if the bull market is chaotic and chasing hot spots, the success rate is also high, and the risk is relatively small.
5. Seizing Opportunities Amidst Uncertainty
Opportunities with certainty have a higher success rate, while opportunities with uncertainty have a lower success rate. Therefore, do not be troubled by uncertain matters, but pay more attention to the investment opportunities brought by events that will definitely happen. For example, if fluctuations are certain, then the H333 strategy captures opportunities with certainty.
6. Use H333 Strategy in Non-Major Trend Markets (Volatile Markets)
About 80% of the time, the A-share market is in a stage where the major trend is unclear, and the market shows volatility. The H333 strategy [1/3 base position, 1/3 rolling, 1/3 picking up bargains (buying at extreme times)] has a high success rate in volatile markets. Most people cannot overcome greed and fear, and the principle of the H333 strategy "do not ask about the price, just look at the range, and if you don't roll, you're out" is likely to help investors overcome the greed and fear in their mentality.
7. Improve Trend Investing Skills
In the A-share market, stock selection is more difficult than trend judgment, and the success rate of retail investors in stock selection is lower than that of trend judgment. Therefore, improving trend investing skills can greatly help to increase the success rate of investment. Judging the season of the overall market, sectors, and individual stocks is easier than judging the value of a company, and adopting corresponding strategies according to the season is likely to avoid major mistakes.8. Invest in Familiar Stocks
Making judgments on the trends of familiar stocks will be more accurate. Being familiar with the trends of stocks will not make you panic, and the possibility of stepping on a mine with familiar stocks is smaller.
9. Minimize Short-term Trading
There are short-term trading experts in the stock market, but the proportion is very low. Most people's chances of making money from short-term operations are not high. If retail investors want to improve the success rate of investment, they must first change the habit of short-term operations.
10. Follow People with a Relatively High Success Rate
This is a shortcut to improve the probability of investment success. The key is to have the ability to judge people, which is a bit difficult because it is not easy to view a person objectively. This can only be judged from a probabilistic perspective. The following six criteria can be used for judgment:
(1) The success rate of his judgments in history is high (for more than two years);
(2) People who agree with him are quite outstanding;
(3) He himself is quite successful;
(4) His method is systematic (not mysterious, can be learned).(5) Dare to reveal one's true name to others;
(6) Do not delete historical judgments.
The more conditions are met, the higher the probability of being a truly outstanding person, and the more worthy they are of being followed.
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