The biggest lesson I learned from the stock market is "long-term waiting." When I was young, I was impatient and hated nothing more than "waiting for someone on a date." In the early years of my stock market involvement, I was eager to make money and frequently engaged in short-term trading.
Later, I bought Sichuan Changhong at 30 yuan. A week after the purchase, the stock did not rise. I was very optimistic about it and was unwilling to sell without making a profit, so I decided to make an exception and continue to hold it. That was the first time I held a stock for more than a week. After holding it for two weeks, Sichuan Changhong rose to over 38 yuan, and I couldn't hold it anymore, so I hurriedly sold it. This was the most profitable trade I had at that time, with a profit margin close to 30%! Although, later Sichuan Changhong rose to over 60 yuan. But being able to sell at 38 yuan was already a great breakthrough for me in investment skills!
Since then, I found that holding stocks for two weeks or even a month often yields higher profits, often with an investment return of more than 20%. From then on, my trading gradually changed from three to five days to about once a month.
Holding stocks for more than a month inevitably involves accepting fluctuations in the market or the main force's washing. After many such operations, I gradually adapted to waiting and accepting the stock price fluctuations.
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Because I benefited from waiting to hold stocks, I began to try to challenge holding stocks for more than a year. As a result, I found that I still couldn't adapt to waiting for more than a year. That time, I held a bank stock for more than a year, and it didn't rise. I was almost spitting blood while waiting, and finally, I had no choice but to cut my losses and sell. And I vowed never to buy bank stocks again and never to do long-term investments.
However, the biggest problem with holding stocks for one or two months is that a single trade can only make a few percentage points of profit, and it is easy to miss the opportunity to double the big bull stocks. As my experience in stock trading increased, I became more and more aware of this. Years later, I decided to do long-term investment again.
At that time, I was in my middle age and started to pay more attention to the investment portfolio. I bought 10 stocks at one time. After holding them for half a year, I made a profit of more than 20%. At this time, there was a voice in my heart calling: "Sell it! You have made so much money." But another voice in my mind told me: "Now is the bottom of the market, if you want to make a lot of money, you can't make the same mistakes as before, you need to be patient and hold on firmly."
I listened to the rational voice and did not sell. Soon, my holding rate of return fell back to zero, and the holding rate of return of more than 20% was gone. A few months later, my holding rate of return rose back to 20%, and I still did not sell, and then my holding rate of return fell back to zero. In more than a year, I probably took the roller coaster three times.
A friend advised me: "The stock market is not doing well now, you should take advantage of the good situation and make a 20% profit. Sell the stock and then buy insurance, and when the stock market is good, buy the stock again."I listened and chuckled. I thought to myself: "It's precisely because the stock market is not doing well that I am determined to hold on and not sell. If I wait until the market is doing well to buy stocks, it might be too late."
Some people say: "It was really foolish of you to ride the roller coaster three times in over a year. If you had sold high and bought low, the three 20% gains would add up to a 60% profit! Why didn't you sell at a high point and then buy back at a low point?"
In fact, I have also thought about selling high and buying low, and I also dislike the roller coaster ride. But my more than 10 years of experience in swing trading tells me that this is unrealistic. I cannot guarantee success every time I try to sell high and buy low. If I make a mistake even once, I may never be able to buy back in. I would most likely miss out on the opportunity to double my investment. I have done this kind of thing many times before, letting countless stocks that could have doubled in value slip away. I can no longer do this "seemingly smart" foolish act.
In this trade, I ultimately held on for nearly two years. The bull market finally erupted. Out of my 10 stocks, 7 of them doubled in value! It was the first time in my life that I experienced the substantial returns from long-term stock holding.
From then on, I developed the habit of holding stocks for the long term. Holding a stock for two or three years has become a common occurrence for me. Note, I am not saying that buying a stock randomly and holding it for the long term will result in doubling your money. The long-term holding I advocate in my articles is based on carefully selecting stocks and creating a well-thought-out stock portfolio. The reason I was able to hold this investment for nearly two years was mainly because I carefully selected 10 stocks. The purpose was to avoid holding only one or two stocks, which could lead to holding them for years in vain if I made a mistake and ended up with nothing.
For most investors with some stock selection skills, "long-term holding" is much more difficult than "stock selection". Because long-term holding not only means potentially riding the market roller coaster, but it may also result in significant losses due to long-term holding. Without the courage and determination to throw your 100,000 yuan off the rooftop, you will never be able to do well in stock investments.
My extraordinary patience in stock investing has gradually influenced my life. Now, I am also very resilient in life. It is manifested in the ability to live a long-term life of enduring humiliation and burden, which was something I dared not even think about in the past.
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