In my spare time, I enjoy reading Lao Hu's stock trading diary. My main purpose is to vividly guide my followers by pointing out the mistakes he made in stock trading, so that they can avoid repeating his mistakes. Since new investors will basically make the same mistakes, I will not easily let go of such "new investor error models" like Lao Hu in the teaching process.
Lao Hu's stock trading diary today says:
He adopted a low absorption strategy during the trading session. He placed a very low price, and later changed it to a stock price order 2% lower than yesterday's closing price. When the stock price fell through the very low price order he had withdrawn in the afternoon, he said: "I'm confused, why didn't I have the determination to stick to it and not buy it until it fell to that price?" Later, he submitted an even lower purchase price. As a result, this time there was no transaction.
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It is obvious that his three orders today were all aimed at the "lowest price". As a result, he did not buy at a low price today, and in the afternoon he made a third chase for the lowest price. The habit of liking to buy low prices during the trading session or the daily K-line has been a problem for Lao Hu since he started trading. A few days ago, one of Lao Hu's stocks fell by a few percentage points, and Lao Hu immediately replenished his position. It can be seen that Lao Hu is eager to pursue the lowest price.
With Lao Hu's resolute unwillingness to be trapped, he will inevitably continue to replenish his position in the future. Lao Hu's current fund of 200,000 yuan is not enough for him to replenish his position. In order to buy the lowest price and not to be trapped, Lao Hu's operating funds will continue to increase in the future, and it is possible to reach 300,000 or even 1 million yuan in the future. Don't believe it? Let's wait and see.
Lao Hu's main problem when placing an order is "afraid of being trapped", which is an instinctive reaction of human nature. However, this instinctive reaction is irrational and it is a major mistake in stock investment. Investors can only be considered to have truly entered the door when they are not afraid of being trapped, not pursuing the lowest price, and reaching the state of "if I don't go to hell, who will go to hell."
When I was young, I was like Lao Hu, haggling over the stock price in the plate and being obsessed with the stock being trapped. Looking back now, how naive and ridiculous I was at that time. It was only after middle age that I realized that "only by not being afraid of being trapped can you make a lot of money."
People who are like Lao Hu, haggling over a few percentage points of ups and downs, cannot make a lot of money. On the contrary, such investors become leeks, and most of them lose a lot of money.When I invest, I throw out tens of thousands on a single stock as if it's just a waste of money. I don't really expect much from it. I'm even too lazy to open my account for many days. For me, making tens of thousands today and losing tens of thousands tomorrow is as meaningless as a dream or an illusion. A 50% increase in one stock and a 50% drop in another stock is extremely dull and unexciting, and it can't bring me any surprise or panic.
To invest in stocks, one must achieve my mindset, not to be happy for material gains or sad for personal losses. We should put ourselves in the position of shareholders of listed companies. We have the right to attend shareholders' meetings, to check the company's accounts, and to participate in major company decisions through voting. We should care about the company's operations, its research and development, and its competitiveness.
We must comb a big back hairstyle, wear suits and leather shoes, and walk like Brother Fa. As shareholders of several, even dozens of listed companies, we must have this grand demeanor and pattern.
Advice: Never be a small retail investor busy in the stock market, making a little profit and running away. That is just a speculator. Such speculators will never make a big deal in the stock market for a lifetime.
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