There is no stock that must be bought, and there is no stock that must not be bought.
No matter what kind of stock it is, some people have made money on it, and some people have lost money. It’s a very simple truth, you make money if you buy low and sell high, and you lose money if you buy high and sell low; all stocks go up and down, no stock goes up all the time, and no stock goes down all the time.
Some stocks rise and fall slowly, some stocks rise and fall quickly, some people are in a hurry, and some people are not in a hurry. Everyone has his own favorite companies and stocks.
It’s not necessary to choose a good company, if you think you have the ability to judge whether the stock price will rise or fall. Some people prefer to make and lose money quickly, very exciting.
Choosing a good company is because of the continuous support of profit and cash flow. In the long run, the overall water level tends to rise, and the probability of making money is higher. If you buy high, you will also lose time and money. Of course, as long as you can afford it, there is still the possibility of repayment; while for poor companies, if you buy high, the probability of repayment is much lower.
Everything is a probability, there are no absolutes in the world. Always leave yourself a way back. Decentralization and configuration are tools to reduce risk. Concentration and decentralization are always relative, depending on personal preference.
No company can keep doing well all the time, and a company that everyone is optimistic about cannot be cheap.
Most companies will eventually be destroyed in value, including some former star stocks and blue-chip stocks; while mediocre companies and bad companies are destroyed faster.
Stock prices reflect future expectations, not historical or current performance; but no one can predict the future of a business, and those who claim to know are either gods, liars, or narcissists.
The past performance of the enterprise, or every existing element of the enterprise, has a certain reference value for the future, which is better than knowing nothing about the enterprise, or knowing very little; just as dangerous.
Being able to see the “truth” that others can’t see, or seeing a good company quickly, will make you more money than others, but this ability is extremely rare and requires effort and talent. Most people don’t have it, so don’t have illusions about yourself in this regard.
Always lower expectations. Be consciously aware of your abilities and luck. With the idea of getting rich, there is a high probability that your hope will fail; be less optimistic, relax, and there may be surprises.
Pay more attention to your own investments, and less to others’ investment targets, let alone fight against other people’s investment methods and ideas. It’s none of your business if others make or lose money.
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