The world has seen a major stock market crash this year, a rare occurrence this year, and the Chinese stock market has also bottomed out repeatedly this year. Investors who entered the stock market with great enthusiasm last year to "Share in the growth of the Chinese economy" Are now mostly ashamed and bruised. There are many who have adopted an ostrich policy, not looking, not listening, not asking, not wanting, and rarely opening the software on their computers to look at it, and not daring to face their capital accounts again, which is the opposite of the ambition they used to have when buying stocks.
When the market was good, some investors told me that they could earn several months' salary in a day, which was quite remarkable. But now, when asked about the shares, they reply, "I've already taken a discount, or even a 30% discount, and I’m leaving it to my son, so when my son grows up, he'll be able to unwind, right?"
Perhaps the most successful investor in the world's stocks, Mr. Warren Buffett, is the one who is inspiring the "Hedger" To persevere at this time. Some people say, "Look, Warren Buffett has been holding a stock for 30 to 50 years, and i want to learn from him too. I ask, "Why was warren Buffett born in the United States and not in Japan? Why did Buffett come out after the great stock market crash of 1929?" Of course, Warren Buffett could not come out of the 20-year-long bear market in Japanese stocks, and besides, not only did Buffett catch the 70-year-long economic growth cycle in the us, he was lucky enough to be born at the lowest point of the stock price slump, and by the time he started buying stocks, the market was full of miserable discounted stocks. So it takes external conditions to produce Warren Buffett - the times make the man. A more serious problem is that most people buy stocks to make a small profit and rush to dump them, gloating compared to their salaries, while falling to 20% or more but refusing to stop their losses. As a result, they do not make much money in a bull market, but lose all their profits, and even their capital, in a bear market. In this case, even if there is another bull market, it may not be possible to unwind the hedge. Even if you do, how much opportunity and time costs will you have lost in a few years? (Think about how $10,000 in a few years' time can be of equal value to $10,000 now)
In fact, the current stock market, whether from macro or micro fundamentals, from the surrounding environment or internal structure, as well as the supply and demand of the stock market itself, the trend of market operation has not changed, and is still far from being strong. For those who are already deep in the sleeve, people may no longer have the courage to chop off their positions here, but there are two very key operational points that must be reminded to the outsiders who are trapped.
First, the more most people fall, the more they buy, which is quite dangerous. In the trend is not completely reversed before, if you must invest money into the short term, but also remember to fast in and fast out, must not turn "Live money" Into "Dead money". Secondly, most people like to buy the smaller, cheaper junk stocks, which is very dangerous. Since unfortunately bear the systemic risk of the general market decline, should try to avoid non-systemic risk, the marginalized individual stocks into index-based elves or loft funds, so that there will be no risk of the general market fell by half, it fell by 70%, 80%. Isn't it scary to look at the mass of junk stocks of a few cents or even a few pennies in foreign stock markets, and then look at our junk stocks of a few dollars?
