A Must For Beginners To Enter The Stock Market: Five Moves Need To Be Practiced In Advance

The first step is to see Capital That is, the relationship between supply and demand in the market. Supply and demand is always the factor determining the price. Both individual stocks and the market are driven by capital, so the first lesson for shareholders is the supply of capital. In the stock market, how much money is available on the market, and how much money can be available off the market. Whether the volume and price of the market are rising at the same time. As long as the amount of funds entering the market continues to rise and the upward direction of the market does not change, in this case, the probability of investors making money will be high.

Usually when people buy physical goods, they will also understand the supply and demand, buy stocks, and roughly understand how much capital has been locked in by existing stocks, how many shares have been released, and how much new stocks will need Amount of funds ? These data can be found.

Second, we should look at the policy, that is, the macro-economy. In the final analysis, the stock market is a barometer of a country's economic operation. Before the completion of the share reform, China's barometer was not very smooth. Now the stock market should become Economic optimal allocation And its interaction with economy is getting closer. Most of the government's policies are also related to the operation of the macro-economy; Take a rough look, and be a prophet of the stock market.

The third step is to learn the fundamentals of the enterprise, that is, select individual stocks to know which enterprise is more growth oriented and has better returns, whether its products have unique characteristics, whether there are barriers such as technology and policies, which can crowd out competitors; In the field of investment, there are two theories. One is from top to bottom, that is, focusing on the macro and then on the micro. The selection of individual stocks reflects the bottom-up investment theory. Everyone is familiar with the story of Buffett's investment in Coca Cola. That's the truth. No matter how the external environment changes, as long as the fundamentals of the company remain unchanged, hold and then hold, The price of an enterprise's stock will eventually return to its value.

The fourth level is to pass the technical level, which has something to do with the specific trading time. How the market operates and how the main players control the market, which has a lot of knowledge, but many existing technical techniques are lagging behind. Experts suggest paying more attention to the relationship between quantity and price, and other technical indicators can be relatively weakened.

The fifth level is the psychological level. In addition to the above mentioned specific quantifiable indicators, investment is the confidence index, which comes down to what people often call greed and fear. This kind of psychology believes that every investor has a specific feeling. As an investor, we must be clear that investment is a very serious matter, and we must have discipline to implement. First, we must understand what kind of person we are and what kind of risks we can take, formulate corresponding battle plans, and then strictly follow the scheduled plan.

In the final analysis, investment is a happy and serious thing. Only by being responsible for your own money can you avoid being overwhelmed by the market.