The Money Management Bible for Twenty-Twenty Women

Chapter 22 part
Part 8 In your twenties, be your coolest CFO
Chapter 1 Fashionable Desire Investing

Section [-] Women in their twenties should be wary of the six common misconceptions in stock trading

Stocks are already very familiar to many people. When you open a newspaper, turn on the TV, or browse the web, you can see a lot of stock information.In this big market, there are too many stories of ups and downs, especially for the Chinese stock market, there are more stories of sorrow and joy.Of course, this is not to say that you cannot invest in stocks in China, it just means that for those who have not mastered the investment rules, if you want to invest in stocks, you must be cautious.Women in their twenties have bulging wallets. If they want to trade in stocks, they must first teach themselves a lesson. The following concepts are some common misconceptions in the process of stock trading, and women need to pay more attention.

The first misconception is that you can get rich overnight by trading in stocks.Stock trading is a way to get rich quickly, but don't expect it to make you rich overnight.When trading in stocks, one should avoid greed, and the other should avoid fear.The greedy psychology of getting rich overnight will kill you badly.

The second misconception is that stock trading is too risky.Although stock trading is risky, compared with other professions, the risk of stock trading is relatively small, provided that you have mastered the basic investment principles.Everyone on the earth knows that a business may go bankrupt, a driver may have a car accident, and being an official cannot resist the temptation to embezzle and accept bribes and may be arrested... Is there any occupation in the world that is risk-free?In western countries with mature stock markets, investing in stock markets is a very common way of managing money, just like Chinese people are used to depositing money in banks.

The third misconception is that China's stock market mainly depends on news.Everything in the world has its own law of development, the internal cause is the basis for the change of things, the external cause is the condition for the change of things, and the development and change of things is the result of the joint action of internal and external factors.This is true of Chinese and Western stock markets.Policies (external factors) can only have a short-term and auxiliary impact on the trend of the stock market, and what really determines the trend of the stock market is its own laws. For example, the stock market in the period of macroeconomic rise often performs well.

The fourth misconception is that stock trading depends on a good attitude.A good mentality is very necessary, but if it is said that mentality is more important than technology, it is somewhat untenable.It's like people often say that when you fall into the water, it's obvious whether a good attitude is important or a good swimming technique is important, but if it's used in daily life, people will be a little confused I don't know.If I lost a lot of money in the stock market, how can I feel better?After all, the money lost is also hard earned.Therefore, only by mastering good technology can we have a good mentality.We must keep in mind the basic technical principle of "buy on lows and sell on highs".

The fifth misconception is superstitious indicators.Because these indicators themselves are conclusions based on actual operations, excessive superstitious belief in these indicators will put the cart before the horse.If you can make accurate predictions based on indicators, then you can be 100% sure of making a fortune in the stock market, which is obviously unreasonable.

The sixth misconception is that the volume of transactions is more important than price.In fact, there is a mutual influence and interaction relationship between trading volume and price.For the stock market, when people see the price drop, they will buy it. This is like when brand-name clothing is sold at a discount, more people will buy it, so the demand for buying will increase, pushing up the stock price, and more buyers will join in. .Therefore, there is a mutual cooperation between price and volume, and it is meaningless to only emphasize transaction volume.

Women in their twenties who try to trade stocks not only need to learn how to trade stocks, but also avoid some misunderstandings and master the rules, so that they can use the stock market to make a lot of money for themselves.Finally, I would like to make another suggestion. In 2009, the macroeconomic situation in the world was not very good, which had a great impact on domestic and foreign stock markets. Therefore, you must be cautious when investing in the stock market this year.It is best to wait for the stock market to pick up before investing.

(End of this chapter)