BUY! Don't waste every trough in the stock market

time:2023-01-28 03:06:18 source:clevelanddrifters.com author:Trend
BUY! Don't waste every trough in the stock market

I remember that a few years ago, the auto industry fell into a trough, and many auto 4S stores laid off employees, cut wages or even closed down. The 4S shop where my wife is located cannot sell a few cars a month. The boss uses the income from his farming to make up for the monthly loss in car sales. The proprietress has stopped entering cars from the factory. The entire auto industry is in a slump. When I learned about this situation, I immediately began to pay attention to the auto sector of A shares. At that time, I bought Changan Automobile and BYD, and a few years later, I got several times the income. I dare to buy stocks in the auto sector during the trough of the auto industry, because I have long known a simple common sense: the trough of the industry or the trough of the stock market is often the best time for us to buy stocks. In 1996, I just went to the A-share market to open an account. Before I entered the stock market, I observed the stock market for a long time, and I found that every time the stock market reached its trough, the front door of the securities hall was a picture of dazzling doors. That's when I learned from the book "The Dow Theory" that this is called a bear market. When the stock market is in a bull market, the front of the securities hall is like a vegetable market, and thousands of investors come and go in the hall every day. I realized from the book "The Dow Theory" that buying stocks in a bear market is at least a small risk, and that it is possible to make a lot of money by selling stocks later in the bull market. Therefore, I immediately bought the two stocks of Shanghai Petrochemical and Special-shaped Steel Pipes after opening an account in 1996. A few months later, the stock market began to warm up, and I easily made a profit of more than a dozen percentage points. It is a pity that I later learned a lot of short-term and mid-line trading techniques. These techniques led me astray. The idea of ​​these short, mid-line techniques is to make money efficiently. Invest in bull markets, hot spots, and leading stocks, avoid falling, and stay away from bear markets and industry troughs. Buying starts only when the bottom turns in. This "high-efficiency investment" investment idea really made me miserable. It made me not dare to buy stocks in the bear market for many years, let alone increase my positions in the bear market. What I do every day is to "make money efficiently", and I am constantly chasing up and down every day. Doing this so-called trend-following operation will inevitably cut the meat after the stock market plummets, and will inevitably chase after the stock market rises. As a result, for many years later, my stock returns were very dismal. Constantly chasing up and constantly cutting meat is a common situation in my operation. The most typical one is that I bought a lot of Shenergy's allotment shares at a price of more than 3 yuan, and soon the stock market entered a bear market. In order to "invest in stocks efficiently" and stay away from the bear market, I cut my flesh and sold Shenergy's main shares and allotment shares. As a result, Shenergy shares rose several times after more than a year, and if the allotment shares were sold at that time, at least 10 times the income could be obtained! I didn't reflect on my problems until I was in my 30s - wasting a lot of opportunities for market troughs and industry troughs. The trough of the broader market and the bear market of the industry should not be kept away, but embraced! The trough is a rare opportunity for us to buy aggressively! After I entered the stock market, I was completely misled by the wrong ideas in the market. The current A-share market is actually in a trough period, and many industries are also in the trough of the cycle. It is really the right time to buy A shares now. I found that whenever the bull market came, many people entered the market to buy stocks. Due to the sharp increase in trading volume, the trading channels were blocked. Then the transaction failed, and some people began to scold the brokerage and the stock market. Can't they buy stocks in a bear market? In a bear market, the trading channel is unobstructed, and buying stocks will definitely be easily traded, and they can also be bought at a relatively low price. Why are so few people doing this? Many people also know that it will be cheaper to buy stocks in a bear market, but they are still reluctant to buy stocks. It's nothing more than that people want to make money "efficiently", and people hate the possibility that this kind of bear market may not make money for several years. What people love is that the market horse goes up! See the money coming in right away! It's really human nature to be quick and quick. Therefore, most people enter the market when the market is booming and the industry is booming. It is indeed possible to make quick money when entering the market at this time, but at the same time, there is a huge risk of buying stocks with excessively high prices. At this time, entering the field is actually playing the game of drumming and passing flowers. People buy overvalued stocks and enjoy it, and no one knows when the market will come to an abrupt end. There are people in the market who keep fooling everyone that "the stock market will rise by another 2,000 points". Eventually one day the bull market ends and the industry boom ends. The market fell sharply, and the development of the industry was sluggish. At this time, investors who bought overvalued stocks did not sell in time, and all of them were stuck. This is the most common drama in the stock market. As far as I can see, such a plot has never changed in decades. Nine times out of ten, the long-term quilt of investors was because they entered the bull market and bought the hottest industry sectors at that time. The timing of their purchases has already doomed their future losses. On the contrary, the action of the Tao, and the use of the Tao of the weak. In my years of hard work in the stock market, I have found that bear markets and industry troughs are the best time to buy stocks. Every stock market trough period cannot be wasted, and it is worthy of our investors to cherish. I bought the animal husbandry industry fund during the trough of the pork industry last year, when all the farmers were at a loss. For details, please refer to my series of articles "Why is the pig industry a good industry worth investing in? ", "The current A-share sector is most likely to rise! ", "Why am I strongly optimistic about the breeding sector of A shares? ", these articles proposed to lay out the breeding industry half a year ago or even a year ago. At that time, many Christian Democrats and stockholders ridiculed my purchase. They thought I had bought too early and waited until after the inflection point. The question is do they know when the turning point will come? They can only be jealous of the current rise in the livestock sector but dare not start. When one day they dare to buy the animal husbandry sector, it is estimated that the animal husbandry sector is almost at its peak. The current A-share market is in a trough, and many industries are also in a trough. Such as cement, machinery, medical care, insurance and so on. Although these industries are currently underperforming, their stock prices are also very cheap. The current buying risk is small and the future upside is large. Although we may have to wait a long time to buy these trough industries now, I think the wait is worth it. Staying away from the idea of ​​quick success and sticking to the road is very important at present. Let’s recall what the sage Lao Tzu said—the avenues are flat, but people like to walk on small roads. Why do people like to walk the trails? Because the small road can reach the goal quickly, the big road is too slow. Disclaimer: Any opinions expressed in this article are solely those of the author and do not constitute investment advice. Enter the market accordingly, at your own risk.

(Responsible editor:Aerospace stock)

Related content