"The Wisdom of Stock Trading" is written for investors who, like the author, really want to make a living from stock trading. The following is a reading experience of the wisdom of stock trading, for reference only.
1:
Comrade Chen Jiangting's "The Wisdom of Stock Trading" found that his stock learning was simply a drop in the bucket, and did not meet the requirements of stock learners at all, nor did he achieve the purpose of learning people. They just stayed at the class materials and the teacher's explanations, and did not deeply understand the essence of stock trading, and did not understand the volatility of the stock market. Then there was no regularity, and stock trading relied entirely on rumors and following the trend.
I am a junior student and I have not studied stocks for a long time. Although I came into contact with stocks very early, I always listened to a certain classmate bragging about how much money my father made by buying XX stocks. , but I have never experienced this thing personally, do not understand the mystery, cannot understand the turmoil of the market, and have not tried to understand it in depth. Since "Financial Market Technical Analysis" is set up in school, it is for us to learn deeply about stock trading and understand the basic common sense of the stock market, and not to blindly speculate in stocks. Mr. Chen Jiangting wrote in his book that the most important thing in stock trading is perseverance and the courage to defeat yourself. It can be said that there is no necessary connection between whether you can read or not and whether you can succeed in the stock market.
Stock trading is a very unique knowledge in Mr. Chen's eyes. It is also a very in-depth and simple book that everyone can easily understand. It also teaches people how to make money, how to overcome their psychology, overcome their inner weaknesses, learn how to trade stocks, learn how to trade stocks well, use what they have learned, make good use of what they have learned, and achieve Chen Jiangting’s best gift to us Chinese investors.
After reading this book, I felt the changes in the stock market, which made me feel fearful. I also felt that the stock market is a training for people's hearts, training people to grow, making them stronger and more endurance. . What exactly is the stock market, how do stocks change, what are the rules of the stock market, and do stocks necessarily move according to technical analysis? These questions are the subject of our research, and these questions have been disturbing the hearts of thousands of investors. There are many insights in the book, but I still don’t quite understand them, maybe because I read them all.
I think the author’s analysis of people’s psychology is quite thorough. This is why stock experts make money. When we see market information, we will think according to common sense and solve the questions in our hearts. Stocks Experts seize people's normal mentality and use these mentality effects to make big money. This is because they have accumulated many experiences and lessons. They continue to grow, they continue to improve, they continue to expand their theoretical knowledge of the suite, they continue to absorb the lessons of the market, and eventually they have a place in the stock market.
The stock market is a gambling market, based on human greed. "Greedy"! Want to get something for nothing. This "greed" is the mentality. You can teach him many tricks, such as not to believe anything he encounters next time, etc. But as long as he does not change his "greedy" mentality, he will definitely be deceived again. The tricks of the liar are always more effective than his defensive tricks. You are teaching him "not to be greedy". When have you ever seen a "not greedy" person get cheated? "Not to be greedy" is also a state of mind. We must change this insatiable mentality and think about how to use wisdom and flexible methods to make money instead of thinking about problems with numb inertial thinking. For example, when high-priced stocks arrive on the market and even the aunties who buy tea eggs go to the market to buy stocks, it is also the time for you to take action, instead of thinking that the price will go up higher or higher so that I can earn more. Profit, but in fact it is impossible. The stock price cannot keep rising. There is always a highest point. When it reaches the highest point, all the concentrated energy is exhausted. The stock cannot continue to rise. It needs to fall to concentrate energy and prepare for the next rise. Appear. When it falls to a certain level, we step in again so that we can make more profits.
Greedy people often do not care whether the stock price reaches the highest point, but blindly pursue higher until the stock price soars to an unexpected level. But will the stock market continue like this? That is simply a fantasy. Institutions and various This kind of organization will not allow that stock to continue to rise. They will use false phenomena to make you sell the stock. If you have not been in the stock market for many years, you will easily be deceived by the illusion and lose the opportunity to make profits. Chance. However, not all of our investors are proficient in stocks, and some even rely only on work experience and market experience to apply to the stock market. This is not feasible. The stock market has its own path and unique trends.
"Don't use "the stock price is very low" as a reason to buy, and don't use "the stock price is very high" as a reason to sell! I still have a stock in hand today, the trading symbol is ihni, and the company opens a nursing home. Five Years ago, it dropped from $15 to $5. I thought the stock price was low, so I spent $5,000 to buy 1,000 shares. The current price is $0.25, and I only have $250 left of this stock. Stop loss was "no" back then, but today I use it to remind myself: "You never know how low the stock will fall!" Because people are very forgetful.
I find that novices like it especially. When buying low-priced stocks, I ask my friends whether a certain stock is worth buying. Most of the stocks they choose are low-priced stocks. This low price means that the stock has fallen from a high price, such as $40 to $20. This idea may be true. It comes from daily life. If the price of clothes is reduced from 40 US dollars to 20 US dollars, it must be relatively cheap. If you extend this habit to stocks, you will naturally look for "discount stocks". Unfortunately, you use the same method of selecting clothes to select stocks. , it’s doomed in this industry. There are usually internal reasons why a stock falls from $40 to $20. How can you judge that it will not continue to fall? There is an English saying: Don’t try. Catch the falling knife, it will prick your hand bloody! The most important thing for speculators is to follow the trend. If a stock drops from 40 US dollars to 20 US dollars, it is obviously a downward trend. You cannot go against the trend. . Of course, if the stock fell from $40 to $10 and now rose from $10 to $20, it would be two different things.
A novice will be very upset when he finds that the stock he bought has risen. I am excited, but also anxious, fearing that the market will take back the profits I finally lent. What I keep thinking about is "has the stock reached its peak?" and "stop being greedy and sell it quickly." Readers are reminded: Don't use "the stock price is high" as a reason to sell. You never know how high the stock will rise. As long as the stock's upward trend is normal, don't leave the stock. Remember the Wall Street motto mentioned earlier: Cut losses and let profits run!"
When we first entered the market, we thought that low-priced stocks were cheap, so the losses would be very small, but this is not always the case. Not all cheap stocks have small losses, and cheap stocks There may be more losses and less room for growth. There are many reasons why their stock price is so low: it may be that they are suppressed by institutional investors, which gives the stock more room to rise; it may be that the company's earnings are not optimistic and cannot drive the company. Profit; it may also be that the industry has little room for development and there is no room for higher profits, etc. High-priced stocks may not necessarily be able to earn profits, for the following reasons: 1. The stock price has risen to a very high level and has no power to rise; 2. Institutional investors have deliberately raised the stock price to make profits and flee; 3. The market prospects are very good. Industry, there is a lot of room for development and so on. Different stocks have different movement methods. You will not find stocks with exactly the same movement methods in the market, and do not blindly pursue listed companies with huge profits. Its listed stocks may not necessarily have good prospects. The premise of the stock price is to establish In terms of good development, good stocks may not necessarily have good company performance, or they may have mediocre performance.
2:
This is a good book. Stock trading is not a science, it is an art.
I have learned a lot after reading this not very thick book, but I cannot say that I have learned these: no longer blindly follow the trend, you must understand it yourself, and only follow after you understand it, no matter what it means No matter what opportunity is lost, as long as the stock market is still there, I will still have opportunities; establish a mid-term goal of three years. You don’t want to make money within three years, as long as you don’t lose money, learning skills is the key. If you keep the green hills, you are not afraid of running out of materials; summarize the gains and losses of each transaction, what are the gains and losses, and why are the mistakes; deeply understand why there is a connection between stock trading and weight loss, that is, everyone knows how to do it, but most people If you can't do it; study hard and keep testing the waters. I will never increase my chips easily; I will consider stock trading as my career for the rest of my life, rather than making some money for fun; when I really can't bear it, I will endure it again. You can cry when you fall, but get up and wipe your tears before moving forward. These also need to be practiced repeatedly in future practice before they can truly become their own things.
The book talks extensively about the psychology of stock trading, from which I learned the following points:
You must have a strong interest in stock trading. Only if you have a strong interest in stock trading will you seriously study relevant securities expertise. This is the most basic condition for stock trading and the most basic mentality for stock trading.
Be confident. You must believe that you will be able to learn the skills of the securities profession well and obtain certain research results in practice. Being fast, accurate and ruthless are the unique skills of a speculator. Many people think it is difficult to do it. Since you think it is difficult to do it, others must be sure that you can't do it at all. Because you have no confidence in yourself, of course others will have no confidence in you. As long as you are very confident and keep studying hard, I believe you will be able to achieve your dreams.
Overcome fear and greed. In a word, only by mastering sufficient knowledge, including securities expertise and related knowledge, can fear and greed be overcome. Only when your level reaches the highest level, you can not only overcome fear and greed, but also learn to be more greedy.
Learning to stop losses is a sign that your stock trading skills have improved. Only by stopping your losses can you minimize your losses in stock trading, admit your losses and get out, sum up your experience and lessons, and make a comeback in the future. Learning to stop losses is not only a sign of improvement in your stock trading skills, but also the first step towards becoming a mature investor. When you no longer lose money in stocks, your level has been greatly improved.
You must learn the ability to think independently and make independent judgments, and do not follow what others say. For anything, you must start from both the pros and cons in order to make a rational analysis of the matter.
Learning from the experiences and lessons of successful people can make a qualitative leap in your own stock trading level in a short period of time. There is a famous saying: A great teacher makes a great disciple.
Learn to be short and patient. As long as you learn to take short positions and be patient, wait for the opportunity to appear, and once the time is ripe and meet the buying conditions of comprehensive technical analysis, you can take a heavy position and attack. I believe there will be generous returns. Learning to take short positions and be patient is also the only way for you to become a master of stock trading.
The next step is some basic knowledge of stock analysis, including basic analysis and technical analysis. I learned some of them when I was in second school, but not enough. What I also learned from "The Wisdom of Stock Trading" is: the general environment. Including interest rates, taxes, exchange rates, monetary tightening, economic cycles, inflation, political environment, and national industrial policies, changes in them will largely affect stock price changes. Small environment. Including corporate operating income, corporate profits, fixed assets, similar company situations, brand value, etc., all have a profound impact on stock price fluctuations. Fundamental analysis mainly analyzes the company's small environment. The big environment is too complicated. To judge the big environment, we mainly use the "big stock market".
Three factors lead to rising stock prices: earnings growth, new product launches, and companies repurchasing their own shares.
Regarding technical analysis, I learned that technical analysis is to look at charts. Technical analysis explores the interrelationship of stock price, trading volume, and time to determine the likely direction of a stock's next move. The purpose of technical analysis is to determine the trend of a stock and changes in that trend.
When looking at pictures, start from the following aspects: stock trends and trend lines, support and resistance lines, double-shoulder charts and head-and-shoulders charts, average lines and comprehensive charts. These should be roughly clear when you are in second college.
About stock trading, I learned from this book:
Stop loss. I don’t know how to emphasize the importance of these two words, and I don’t know how else to explain these two words. This is the highest code of conduct for stock traders. If you feel that you really can't sell your stocks at a lower price than the purchase price, then quit this business as soon as possible! You have no chance of survival in this business. The last time you cut your flesh and it hurts, you still have a few dollars left to buy milk powder for your son.
Spread the risk. You need to have a gambling spirit to do this business, but you cannot be a gambler. If you play *** in this industry, bet big, and dream of getting rich quickly, you will capsize and say goodbye sooner or later, and it will be much faster than you think. The mistake that novices make is to be too eager to make money and gamble heavily, hoping to become a billionaire tomorrow. The ancient Chinese saying that "wealth should not be put into urgent matters" can really be said to be true in this industry.
Avoid buying too many stocks. When there are too many stocks on hand, the result is distraction and a loss of feeling for individual stocks. I have always emphasized that you must have a sense of whether the stock movement is normal at any time. Only on this basis can it be possible to control the timing of entry and exit. Buying a lot of stocks of different categories, eager to buy some of each listed stock, is a typical mistake made by novices, because the attention will be distracted. Focus on three to five stocks with the most potential, and as experience increases, gradually increase the number of stocks to ten to fifteen.
When in doubt, leave. This is a rule that is easy to understand but difficult to follow. Many times, you simply lose touch with the trend of a stock. You don't know whether it is going up or down, and you can't figure out whether it is in an uptrend or a downtrend. At this point, your best option is to get out!
Forget about your entry price. The reason why it is difficult to forget the purchase price is related to the human nature of preferring small profits and never wanting to suffer small losses. If the price of this stock is higher than your purchase price, it will be easy for you to sell it because you have made a profit. If it is lower, you have to face the choice of "suffering a loss"! Ordinary people will find a hundred "reasons" to be lazy for a while. My friend, the price of "being lazy a little longer" is very high. It's hard for people to change their human nature, so try forgetting about the purchase price! This way you can focus on doing the right thing at the right time.
Don’t trade frequently. When you accumulate experience to a certain extent, you will understand that the stock market does not provide profit opportunities every day. You think you have nothing to do if you don't buy or sell. If you lack ***, the price is the handling fee for each entry and exit. In addition to handling fees, daily trading will bring you emotional fluctuations, which distracts from the calm observation of the stock market. Frequent transactions not only lose handling fees, but also reduce the quality of transactions.
Do not spread flat downwards. When you make a mistake, you don't have to admit it honestly and start over. With a sense of luck, you can flatten it downwards and lower the average purchase price in the hope that a small rebound in the stock can recover the loss or even make money. It may be possible, but no one can tell whether it will happen in two years or twenty years! What if you never go back? If you get burned once, you will no longer have the courage to continue trading in stocks. If you are lucky enough that the market gives you an opportunity to unwind, will you cash out immediately and put the money in a rice vat, or will you rest assured that you can touch money every day? Beginners, please remember: Don’t spread it downwards!
Don’t let profits turn into losses. The first priority for stock trading: protect your capital! Under any circumstances, try to protect your principal.
Follow the stock market, not your friends. The simple explanation of this rule is: don't buy or sell with friends, buy or sell according to market conditions. A person who really understands stock trading usually doesn't want others to follow suit, because you can buy from me, but you don't know when I want to sell, and the result may be harmful to you. Make some effort, study the dynamic patterns of stocks, and learn to choose buying and selling points.
When it’s time to sell stocks, make a decisive decision without hesitation. Stocks always fluctuate in various ways. When they fall, they will always give you a small rebound from time to time, giving you a glimmer of hope and making you feel that the decline has begun to turn around.
When the stock falls again, your original hopes are shattered, and you are about to give up, it will rebound a little and tie you down again. What started as a small loss turned into a big loss after a few such back and forths. This is why stock traders who have learned to "stop loss" still lose a lot of money. After setting the exit price, when the stock drops to this point, don't fantasize, don't expect, don't make excuses, sell immediately.
Don’t use “the stock price is very low” as a reason to buy, and don’t use “the stock price is very high” as a reason to sell. When a novice finds that the stock he bought has risen, he will be very excited but also anxious, fearing that the market will take back the profit he finally lent. What's running through my mind all day long is "Has the stock reached its peak?" and "Don't be greedy and sell it quickly." What I would like to remind readers here is: Don’t use “the stock price is very high” as a reason to sell. You never know how high the stock will rise. As long as the stock's upward trend is normal, don't leave the stock. Remember the Wall Street motto mentioned earlier: Cut losses and let profits run!
Make a plan and follow the established guidelines. When investing in stocks, understand what your risks and rewards are. How to respond if the market does not perform according to your intended track? It is best to write down the response strategy.
Many well-known experts on Wall Street have done somersaults on this issue. Once a person is famous, reputation is more important than anything else. They think the stock will rise, but what if it doesn't? The conclusion is naturally that the market is wrong, and the market has not yet experienced the value of this stock. As a result, the experts fell off their thrones one by one. There are many such stories. The smarter the person, the easier it is to be self-righteous. Most of their decisions in life are correct. Some of them start out wrong, but they turn out to be correct in the end. But in the stock market, maybe they are right in the end, but before the market proves it, they can shave their heads and go home. Don't be self-righteous, don't have vanity, decide your action plan based on the information the market gives you, and admit your mistakes immediately if you make a mistake. This is the way to the long-term survival of the stock market.
Three:
Through three interesting stories, I understand the essence of stock trading: First, don’t be afraid, don’t regret it. Now that you have entered the stock market, don’t be afraid, and don’t be afraid if you lose. Regret; second, before playing the game, we must first understand the rules of the game. When faced with artificially manipulated gambling, we must understand the psychology of the other party. Especially when facing the Chinese stock market, which is seriously manipulated by institutions, we must understand the rules of the game in the stock market. ; Third, the thief's skill lies not in stealing, but in how to escape in times of crisis. Similarly, the key point of stock trading is not how to buy stocks and how to make money, but to know how to sell stocks at critical moments and preserve principal.
The author mentioned that human nature hates risks, so they often run away after small profits; the psychology of human nature that can’t bear small losses makes people unable to bear to cut off even when they make small losses, but in the end they cause greater losses. This mentality can be explained by the conclusions of the two experiments in the article: most people would rather take less and have a certain profit; most people would rather take risks than pay a certain loss. This made me realize the importance of stop loss. After buying a stock, you must set a stop loss level in advance. When the stock price falls to the stop loss level, you must sell decisively instead of using various reasons to convince yourself that the stock price will rise. After the stock price rises, the stop loss level should also be continuously raised to ensure profits. The stop loss level should be set between 10 and 20. In the simulated stock trading, I set a stop loss level of 10, but most of the stocks were sold by me before they fell to the stop loss level. Some stocks rose immediately after I sold them. Therefore, by reading From this book, I realized that I must set a good stop loss level, and don't just sell stocks that have not fallen to the stop loss level. I must strictly abide by my own operating rules.
The basic knowledge of stock analysis is nothing more than basic analysis and technical analysis. Basic analysis determines investment objects and is more suitable for long-term investors. Technical analysis determines investment timing and is more suitable for short- and medium-term investors. The author mentioned that basic analysis is only an important but rough reference, because at present, the Chinese stock market has not yet formed a mature medium and long-term investment environment, and short-term is still the best choice for ordinary investors. Therefore, technical analysis is essential.
The technical analysis methods we generally master include time-sharing trend charts, K-line charts, tangent analysis, morphological analysis and indicator analysis. Each method has certain advantages and limitations and must be combined to conduct comprehensive research and judgment on stocks. The author of the book listed 4 common graphics and conducted psychological analysis on them one by one. From this, I realized that I should not operate on stocks that have no potential, but should buy stocks that are in an upward trend. Breaks of pressure and breaks of support are opportunities to buy and sell. But before the double-shoulders chart and the head-and-shoulders chart are formed, we don't know its trend, which makes it difficult for me to grasp good selling points.
The author mentioned that the key to success is to protect capital and continue to make profits, which requires us to learn to stop losses quickly and not bet too much at one time. At the same time, when making profits, as long as the stock movement is normal, we must not press Move and let the profits run. To preserve your principal, you need to pay attention to danger signals, exit the market as soon as possible when there is major negative news, pay close attention to changes in trading volume when the stock price fluctuates abnormally, analyze the trends of large capital investors, and exit as soon as possible when there are signs of shipments by large investors. Exiting the market, such as stagflation, increased volume, heavy volume, etc. If you want to survive in the stock market for a long time, you must have a stock trading model that suits you, establish entry and exit rules that suit you and the market, and have endurance and self-control. I once saw the stock price of Huayi Jiaxin rising sharply in a simulated stock trading, so I bought a large position. As a result, the stock price fell sharply the next day, and I sold it immediately. As a result, the stock price rose sharply again on the third day. This is not having myself. The consequences of the stock trading model, blind following the trend and lack of self-control.
As for when to buy stocks, from the author's discussion, I realized that cheap stock prices should not be a reason to buy. Don't use "the stock has been falling for a long time" as a reason to buy. Before buying a stock, be sure to refer to the stock's trend chart. It is best to buy when it is rising or breaking through a resistance line. After buying a stock, you should set a stop loss point in advance and remember to follow it. The timing of selling stocks is sometimes more important than buying stocks. A simple way to decide when to sell a stock is to ask yourself: Would I be willing to buy this stock at this time? If the answer is no, you're ready to sell the stock. At the same time, you should pay attention to danger signals, remember to protect your capital first, set a stop loss position, and if there is a huge profit, take it first and use the moving stop loss point to sell the stock.
For hundreds of years, the ancestors of the stock trading industry have used their experience to write down family mottos - the principles that must be followed to survive and succeed in this industry. These principles held true a hundred years ago, they hold true today, and they will hold true a hundred years from now, because human nature does not change. Therefore, we must learn:
1. Stop loss, stop loss, stop loss!
2. Diversify risks
3. Avoid buying too many stocks
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4. When in doubt, leave the market!
5. Forget your entry price
6. Don’t trade frequently
7 , Don’t spread it downward
8. Don’t let profits turn into losses
9. Follow the stock market, don’t follow your friends!
10. Don’t let profits turn into losses. "The stock price is very low" should be used as a reason to buy, and don't use "the stock price is very high" as a reason to sell!
11. Make a plan and act according to the established policy. Don't be self-righteous or have vanity. Decide on your action plan based on the information the market gives you, and admit your mistakes immediately if you make a mistake. This is the way to the long-term survival of the stock market.
And always remember: the market is never wrong, but your ideas are often wrong.
Some people say: A master comes to the plate, observes its shape, discerns its meaning, knows its timing, and measures its potential. It moves at the end of Yin and ends at the end of Yang. His heart is as immovable as a mountain, and his nature is like water. Impermanence. But it is difficult to actually achieve this. There are many psychological obstacles to successful stock trading, such as greed, fear, impulse, and hope. They affect every decision we make, making us often unable to do what we should do. To succeed, you must overcome these obstacles and carry out psychological training. First, you must formulate a practical stock trading plan and strictly implement it according to the plan. Secondly, you must correct your mentality, face yourself honestly, and evaluate yourself.
Whenever you buy or sell a stock, write down the reasons for the purchase or sale. Once the transaction ends with a loss, note down whether you think the reason for the loss was greed, impulse, or subjective hope, and draw lessons from it. lesson.
The author said that there are four stages in learning stocks. After a semester of studying financial investment technical analysis courses and simulating stock trading operations, I feel that I am in the exploratory stage. I have roughly understood various technical analysis methods, how to use fundamentals to select stocks, understand the timing of entry and exit, as well as the grasp of buying and selling points, and know how to set stop loss levels. But there is still a long way to go in psychological construction. It is easy to lose rationality in operation. When you see a stock rising sharply, you want to buy it. When simulating stock trading, you like to choose some "excellent stocks" from the stocks that have risen sharply that day. When the stock falls, you want to sell it. As a result, the stock price falls after you buy the stock in an upward trend. After selling the stock in a downward trend, the stock price rises again soon. In order to solve this psychological obstacle, the author mentioned in the chapter of psychological construction how to overcome the human nature of fear and greed, and seek a balance between the two. Perhaps, as the author said, your understanding of stock trading is as much as your understanding of life. How many. At present, my mental state is biased towards greed. I should be more rational and not blindly follow the trend. I should also overcome my fear when the market goes down. I should not sell stocks too early and run away when the rising trend reverses. In addition, the psychological training mentioned in the book is also worth referring to. You must believe in yourself, be honest with yourself, have independent judgment, self-supervision, be good at adjusting plans, and love this industry. Making money is not for the sake of making money, but for the sake of making money. Have fun with it.