Essence Edition Are you suitable for buying stocks?

Chapter 3 Are you suitable for buying stocks? (3)
I believe that the sharp drop this afternoon has deeply hurt many small investors who entered the market in the past two days expecting to make a small profit and run away.Last week, the editor just finished writing the article "The Shanghai Composite Index hit a new high in the past three and a half years yesterday. Should investors buy or sell?" Thinking that the plunge would come so fast!So violent!The investment strategy of independent thinking at that time has protected my principal well today. Not only did I not get caught, but it also locked in the early profits well.

The editor still has 10% of the position in his hand, but the loss is not large, and the stock in his hand is of very good quality. Even if it continues to fall, because of the support of the company's performance, there is no need to worry about the stock in his hand.The decline is a good thing, allowing me to buy stocks of good companies at a cheaper price.

Well, it's a bit off topic.The editor is not trying to brag, but just wants to explain how Xiaosan should operate in order to protect his principal when the market risk is very high.

The editor said in the article "Shanghai Composite Index hit a new high in the past three and a half years yesterday, should you buy or sell" that you must never borrow money to speculate in stocks, secondly diversify your investment, and finally buy stocks that are of good quality and cheap stock.But the last point is that for those who have only opened an account to buy stocks in the past two days, they may not even understand what a stock with good quality and cheap price is.This is not something that can be explained clearly in this 1000-word article, but it needs to be studied systematically to understand.So, if you are a novice in the stock market and want to enter the market during the ups and downs, how can you ensure the safety of your principal?
The editor still puts forward two suggestions based on the knowledge he has learned in Changtou Academy:
First of all, don't take a full position, but only take 10% to 50% of your principal into the stock market. After buying stocks, if the stocks in your hands continue to rise, then sell the stocks in batches to maximize your capital and stock market value. Keep it at a ratio of 10% to 50%.If the stock in your hand turns around and falls sharply, you don’t need to rush to cover your position. You should wait for the stock market to stabilize before buying the same stock. It is still necessary to keep the ratio of your funds to the stock market value at 10-50%.If it is not falling sharply, you can buy the same stocks in batches every 15% to 20% fall, and still keep your capital and stock market value at 10% to 50%.The above three strategies all adopt the method of "dynamic rebalancing".

If the position is already full, it is recommended to close it first if there is a profit. It is very painful to be covered with a full position; if the position is not full, you want to cover your position when you see the stock falling. You should be careful like others do T+0. The current stock market is too volatile. It's easy to get new money in as well.Just want to operate?The editor did not dare to forget the bloody lesson of losing 60% of the principal before!The lessons are hidden deep in the memory, far less vivid than the pain in front of me!Make it up... wait a minute!Long Tou Academy also taught a trick!Do reverse repurchase of government bonds.Sell ​​7-day treasury bond reverse repurchase, your funds will be frozen for 7 days, and you will earn interest!What?If you don’t know what reverse repurchase of treasury bonds is (actually you don’t understand stocks either! Stocks are not just codes!), hurry up and learn at Long Tou Academy.

Seeing this, are you curious about what Changtou Academy teaches?So, the next thing is the advertising time of Long Tou Academy!Since it is a magazine with the theme of stocks, and Long Tou has a series of courses on stock investment, it would be unreasonable not to introduce the course system of Long Tou by the way.So, let's take a look at how to become a value investor in Changtou!You can also come to test your own investment level!

A Story of Making a Value Investor
Section [-] Value Investor Test

It is said that "the stock market is as deep as the sea once you enter the stock market", and every time you stop on the long road of investment, do you feel a sense of confusion and helplessness of "I don't know the true face of Lushan Mountain, but only because I am in this mountain"?It turns out that the stock market is also divided into various factions such as value investors, speculators, and news listeners. Everyone claims to be a decent school, and as long as they practice their own martial arts, they will be able to dominate the world.

"Young man, do you know which sect you should join?"

"I accidentally fell down the valley that day and met an uncle with small eyes and a wretched smile. He called himself Little Bear. The long-term way. He asked me to find a place called Changtou Academy, which is the best place for value investing to practice. I have been walking for almost a month, may I ask where it is?"

"This is the Changtou Academy. If you want to enter the school, you must complete this test paper first!"

"What? Let me take the exam as soon as I come!"

"Don't be angry with teenagers. Long Tou School not only provides a full set of courses from elementary to advanced for value investors who want to practice, but also adopts the most advanced teaching concepts in the world to teach students in accordance with their aptitude. The knowledge structure of value investors is divided into three parts. There are three levels, the lowest level is accounting and basic valuation knowledge, the second level is business logic, and the highest level is investment skills. If you don’t have the inner skills of the first and second levels, we will definitely not teach you investment If you are skilled, it is easy to go crazy; if you have deep internal strength, we will let you learn from the beginning, isn't it a waste of your time and money? You must know that although this school is the best in the world, it still has to charge Money!"

"So that's the case, then let the horse come over!"

How do you think about discounted items?

A. Local tyrants like me don’t want the best but the most expensive when buying things. If you tell me about discounted products, get out of here!

B. As long as it is a discounted product, I want it, this one, this one, this one, all wrapped up for me!

C. There are good and bad discounted products. Of course, you have to choose carefully to find the most cost-effective one.

D. Oops, I know you want to say that value investing is buying good discounted stocks, that's enough, let's get to the point!
Students who choose A, please go out and turn right, don’t send them off. You can still save students who choose B. Those who choose C and D, you have different talents. It’s a waste not to come to Changtou Academy to study!
Level [-] value investor

(The test time is 10 minutes, and you can enter the next stage by answering at least 6 questions correctly. If you fail, please sign up for the long-term primary course on the left hand side) 1. Do you know what PE is?

A. Polyethylene (p·lyethylene)

B. P/E Ratio

C. don't know

2. How do we know if a company is currently on discount?

A. follow the feeling

B. It can be valued by price-earnings ratio and price-to-book ratio

C. There are many valuation methods, and these methods can be combined to judge the value of a company. 3. If a company wants to increase its gross profit margin, what can it do?
A. Reduce selling expenses

B. to increase employee wages
C. Negotiate with raw material suppliers to obtain lower raw material supply prices 4. What does the so-called reduction of the proportion of three fees mean?
A. Reduce public consumption
B. Reduce the ratio of the sum of sales expenses, management expenses and financial expenses to operating income 5. At the end of a fiscal year, which of the following companies really earns real money?
A. Net profit of 1000 million yuan, net cash flow - 490 million yuan
B. Net profit of 300 million yuan, net cash flow of 267 million yuan
6. How should we treat corporate liabilities?
A. The companies that borrow money are not good companies

B. Now is the era of capital operation, which company does not borrow money, it is better to use the borrowed money to make money C. We must rationally look at the debt of the enterprise, carefully analyze the debt situation, and judge the possible impact of the debt on the enterprise Risk 7. What is the basic value of the Cubs?
A. What is a bear?What is the basic value?
B. The basic value of the bear is the ratio of the sum of the company's net cash flow over the years to the sum of its capital expenditures. In layman's terms, it is how much money the company has earned from its expenses over the years. C.The basic value of the bear refers to the basic information of the bear, such as height, weight, measurements, etc. 8. What do R·E and R·A refer to?
A．Haha, I know this, R·A is the name of a Japanese singer, R·E is the abbreviation of 21st Century Evangelion New Theater Version B. R·E and R·A are two-letter combinations that look very similar with only one letter difference. R·E refers to the return on net assets, and R·A refers to the return on total assets, both of which are indicators to measure the company's profitability (the correct answers are: BBCBBCBC, 1 point for the correct answer, 0 points for the wrong answer, 6 points pass) The second section of internal strength and mental method is very important. The long-term primary and advanced courses discuss the importance of laying the foundation from Guo Jing's growth experience. It has not been reached yet, it seems that you need to learn from the beginning of this school's elementary courses."

"It's impossible. Although I haven't been involved in the stock market for a long time, I have studied hard and practiced hard. I have to read the market every day. My eyesight is almost bad. I know the history of many companies very well, and I have invested all the money I earned through hard work on weekdays In the stock market, although I didn’t make money, I still have experience, why do you want me to start all over again! Could it be a conspiracy by your school, wanting me to obediently hand over all the money in the bag to you!”

"Young man, after hearing you say this, I am even more convinced that you should start practicing from scratch."

(End of this chapter)