tech

The essence of stock trading, like falling in love, is a test of human nature.

Nowadays, people are increasingly less inclined to believe in love because they have seen too much evil in human nature.

Some time ago, a company about to be delisted claimed that it had been fraudulent from the start, and now the person has already immigrated abroad, blatantly declaring that they are not only scum but also pure deception.

This is like wanting to fall in love, only to encounter a professional marriage scam, leaving one with nothing but loss.

Therefore, in the stock market, choosing the right person and the right "love" object is very important.

In the stock market circle, when people mention choosing the right person, many will think of various so-called teachers.

However, most of these so-called teachers are actually self-taught, and they may even lack practical experience and are just fraudsters.

Some teachers are not even human, but just an empty shell, an account, a code.

Teachers who can make money are busy making money themselves, and if they have time to teach others how to make money, it's really a joke.

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When it comes to choosing the right person in stock trading, it certainly does not refer to these so-called teachers, but to a few other types of people.Category One: The Boss of a Listed Company.

The so-called "picking the right person" includes an important aspect, which is the boss of a listed company.

This may be one of the key issues.

For a listed company to achieve something and grow, the leader is very crucial.

Only a founder who is dedicated to running the business can create a listed company that continues to rise, which is a very important point in a positive cycle.

Of course, many people believe that judging whether the boss of a company is good or not is actually very difficult.

It is indeed very difficult because there is too little relevant information, especially for the bosses of some small and medium-sized market value companies.

However, there are a few things that can be observed.

One is the public information about the resume, what exactly is it like, how did the boss make a fortune, is he a professional talent, is he from marketing or from technology.

The second is whether the big boss, as well as some major shareholders, have the behavior of reducing holdings and cashing out.Outstanding entrepreneurs are mostly low-key, simple, and not adept at cashing in from the capital market.

The second category is professional investment institutions.

Recently, there was an incident that had a significant impact on me.

A large number of stocks were labeled as ST, and many professional investment institutions got caught in the trap.

Private, public, and foreign funds, almost none of them escaped, all were on the list of getting caught in the trap.

Only the social security fund stood out, a big winner in the stock market, the most professional investment institution.

If you think stock selection is difficult, just follow this type of capital to select stocks.

As for why it is professional, why it doesn't get caught in traps, I think everyone knows this.

Of course, there will also be objections.

They believe that the disclosure of social security is generally lagging, and the stock price is also high, sometimes even social security loses money.Looking at individual cases, there indeed are some issues present, but when viewed over a long period, the error rate is significantly lower.

At least following the social security is much more reliable and safer than following some rumors.

The third category, friends who can alert to risks.

The last category is people who can alert you to risks.

When the market is booming, you will find all kinds of folk experts everywhere.

Everyone will tell you to buy this and that, as if you can make money, and it's big money.

But when you find that the market is not good, these all "disappear", or they simply refuse to talk about it.

This situation is very common and is also a very realistic situation.

In the stock market, there are many who can share the wealth, but naturally there are not many who can share the hardships.

Most people will not alert you to risks, because it's hard work and not appreciated.It's like employees in a company, warning the boss about risks and suggesting preventive measures. However, once the risks are mitigated, they become invisible, and the problem is not truly solved or brought about substantial benefits.

When you look back and wait for a downturn to assess the risks, you will realize how valuable those who warned about the risks were.

There are many people who can make money in a bull market, but not many can successfully preserve their profits.

In summary, the three major logical threads are actually a single investment thinking line.

Follow professional investment institutions to select stocks, observe whether the leaders of listed companies are reliable, and finally pay attention to risk management to secure profits.

Investing in this market is nothing more than these few things.

Of course, if you can choose an exceptionally outstanding professional manager, like Warren Buffett, entrusting your money to him and letting him invest for you can also make you a lot of money.

However, in real life, such people are too few, and most are still scammers.

Many investment managers did indeed make a lot of money for their clients in a bull market and took a significant share of the clients' profits. In a bear market, they still suffered huge losses and then disappeared without a trace.So, choosing a professional investment manager is essentially a false proposition.

In the past two years, public funds have repeatedly proven to be false. No matter how well-packaged the fund manager is, they ultimately cannot escape the fate of losing money.

Some even have all kinds of scandals, such as bribery and insider trading, which are everywhere.

Choosing a high-quality fund manager is even more difficult than choosing an outstanding chairman of a listed company, as the information is completely asymmetric.

Therefore, the task of selecting people is actually very challenging.

1. It requires long-term tracking.

Do not hastily judge an investment manager, a corporate chairman, or a so-called investment expert.

Long-term track his words and deeds, his performance, his investment philosophy and logic.

At least 1-2 years, you can determine whether a person is suitable, a listed company is suitable, and an investment manager is outstanding.

2. It requires repeated verification.The so-called repeated verification refers to the need for verification regardless of whether it is a bull market or a bear market.

There are too many people who can make money in a bull market, and there are not many who can lose less money in a bear market, let alone make money.

Even truly outstanding listed companies can deliver good profit reports in a not-so-good economic environment.

3. Once you are sure, don't change.

If you are sure, whether it is a person, a company, or a leader, don't change.

The reason is very simple, the proportion of truly good stocks and good investment managers is too small.

This is like a big bull stock, which also needs us to hold for a long time to enjoy the real profits.

Investment is a very difficult thing, stock selection is like selecting people, and it requires a pair of wise eyes.

Not everyone is born with these wise eyes, more often, we need to increase our own cognition and experience to make better choices and gain more.