【Financial Management Academy】 Retail Investors Buying Chinese and Good Stocks Can Win Double What They Are Shocked and Losing Half Hong Kong Economic Times-Financial Management-Financial Academy



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[Accademia di gestione finanziaria]Retail investors who buy good stocks in China can win double what they are shocked and lose half.

It is not easy to invest in stock selection, but even if you choose stocks with appreciation potential, it does not mean that you will make a steady profit – investors still need to pay attention to their mindset and strategy. Financial columnist Zhi Fan shared in his column and channel that a retail friend rarely found an unpopular industrial stock that could have doubled the win, but ultimately lost half of it. He analyzes the mindset of retail investors from this story and believes that retail investors should pay attention to investing to avoid affecting returns due to the state of the investment.

[L’investimento vince sempre lo zuccherificio perché smetti di pensare agli investitori al dettaglio: clicca qui]

Buying good stocks but being shaken could have doubled and ultimately lost half

Zhi Fan shared in his column that this retail friend has always loved analyzing stocks and, using value investing methods for analysis, selected an unpopular industry stock. After learning about the company’s business in detail, he calculated the intrinsic value of the stock of at least 10 yuan using the discounted cash flow method and earnings forecast. But under the shadow of the Sino-US trade war, the share price was only 5-6 yuan. As the retail investor predicted the impact of the trade war would pass over time, he bought at a value discount nearly half the time and planned to invest long-term.

However, as the global epidemic developed, the stock price plummeted to 3 yuan, seeing the book and wealth suffer heavy losses, the retail investor, under psychological pressure, decided to sell first. Unexpectedly, after the US election results became clear and the news of the results of vaccine research and development, the industrial stock jumped to 12 yuan, which was double the retail investor’s average purchase price! The retail investor had already bought a double strength stock, but was tragically shaken and eventually lost half.

[Investire per fare soldi, non aver paura di perdere soldi. Se vuoi vincere, devi prima imparare a perdere: clicca qui]

1. The investment mindset is more important than analysis

Zhi Fan believes the retail investor stock analysis was done well, but he lacked psychological quality and was shaken when the storm was high. He also stressed that investors must have both analytical skills and psychological qualities, but believes that “psychological quality is more important because analysis is not difficult to find, but the mindset and mindset are more difficult to grasp.”

2. Learn from mistakes

Although the retail investor’s unfortunate experience has become a fact, Zhifan pointed out that the most important thing for investors is to review success or failure. Believes that investors should review investment returns or losses, how much is the result of the analysis and how much is the influence of luck, and adapt their investment mindset based on the results of the review, let go of the blame and start over .

https://www.youtube.com/watch?v=JfJRCNpAsy0

Responsible director: Li Ying



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