Anyone can find investing in the U.S. stock market interesting, whether they have done it before or not. The market is full of ways to make money that will add to your wealth over time. But to make sense of the complicated world of stock investments, you need a well-thought-out plan and a general grasp of how the market works. Here is some information to help you get started in the U.S. stock market.
Learn new things. It’s important to know the basics of the stock market before you start investing. You should learn about market terms, financial strategies, and the different kinds of stocks that are out there, like ETFs, common stocks, and preferred stocks. There are a lot of online tools, books, and courses that can help people who are just starting out. Knowledge is power, and in the stock market, it’s also your best defense against making costly mistakes.
Plan out your investment goals. Understanding your investment goals is important. Are you investing for long-term growth, generating cash through dividends, or saving for a specific financial goal? Your goals will dictate your investment strategy, including the types of stocks you might buy and how long you plan to hold them.
Choose a Brokerage Account To buy and sell stocks in the U.S., you’ll need a trading account. There are many brokerages to choose from, including standard brokers like Fidelity and Charles Schwab, and newer, app-based platforms like Robinhood and Webull. Consider factors such as fees, services given, investment options, and ease of use when selecting a brokerage. Some offer training resources and tools that can be particularly useful for beginners.
Start Small and Diversify Once you’ve started a brokerage account, it’s tempting to jump in with both feet. However, starting small and gradually increasing your investment as you gain more knowledge and confidence can be a prudent method. Diversification, or spreading your investments across a wide range of industries and asset classes, can reduce risk. Consider starting with ETFs or mutual funds, which automatically provide a diverse portfolio.
Develop a Strategy Developing an investment strategy is important. This could involve choosing between active or passive investing, deciding on a buy-and-hold versus trading method, and defining your risk tolerance. Stick to your plan, but be prepared to adjust as your financial goals or market conditions change.
Stay Informed and Keep Learning The stock market is dynamic, with conditions that can change quickly. Stay updated by following market news and trends. Additionally, continue to teach yourself about investment strategies and financial planning. The more informed you are, the better prepared you’ll be to make choices that align with your financial goals.
Understand the Risks All investments come with risks, and it’s important to understand them before making any choices. The value of stocks can fluctuate greatly, and it’s possible to lose some or all of your investment. Never invest money that you can’t afford to lose, and consider hiring a financial advisor for personalized advice.
Entering the U.S. stock market is a journey that takes preparation, education, and a clear understanding of your financial goals. By starting small, diversifying your investments, and staying informed, you can manage the market more effectively. Remember, investing is a marathon, not a sprint, and patience and persistence are key to achieving your financial goals..
When it’s time to plant, don’t boil the seeds in a pot; instead, put them in the ground. When the market is down, it’s time to plant. While the market is rising, the best way to make a lot of money is not to chase hot stocks, hit the daily limit, or listen to other people’s stock suggestions. Instead, you should focus on getting enough chips at the bottom. It’s easy to understand things during a bear market. How much money an investor makes in a bear market shows how much money he can make in the long run. In a bear market, people learn and grow, but they can’t learn anything in a boom market.
Making money is like working in a market economy. Just like our farmer uncle planting and banker, business also has four seasons: sowing in spring, growing in summer, harvesting in autumn, recuperating in winter, accumulating strength and waiting for the chance. But the fact is that whenever the market is low, a large number of retail investors always leave the market quietly and go home to cook seeds. They never forget to tell me that the seeds in the ground will rot.
We stand on the shoulders of giants. The glory we see now was built by people who came before us in just a few decades, when the country was young and had nothing. Let us learn from our family farmers how to deal with the present, take advantage of chances, have faith in the future, and make tomorrow better for ourselves and our country.
The plan is simple: sell those that fall below the trend and buy those that are on the uptrend. As long as there is a market trend, you will definitely be able to keep up. Select the strong and eliminate the weak, and the fittest live. Don’t feel bad for those stocks that are breaking the trend. They have been eliminated and cannot live in this jungle where the jungle is strong.
A strong team must constantly eliminate lagging parts. Going with the flow is the constant rule. Even if you lose money, you will still have to follow the trend. When you see the money-making result before using a strategy, it is often too late. We have to stick to our plan when no one is telling us to.
Farmers all know that if you sow seeds in spring, you won’t be able to harvest them until fall. They won’t be scared when the seeds are first planted in the spring. We all know that sooner or later the market will rise to 3,500 points or even higher. The question is whether we can hold on until the crop season.
Farmers are not worried or anxious because they do not have unrealistically high hopes and there are no experts around to analyze the news for them. Therefore, it is best to lower standards and take a long-term view. Buying a big base is like buying a house. Allocate it first and do not consider selling in the short run.
One of the main reasons why ordinary people make a lot of money by buying houses is that they can afford it and basically don’t care about short-term news, let alone regular operations. Many real estate speculators lose money because they raise leverage and do short-term trading. The above is just my personal view. It’s normal if you have different views. You don’t have to agree on all projects, otherwise there will be no rivals. I don’t want to convince you, and you don’t have to convince me.
If ordinary people want to change their destiny, they must find ways to make themselves extraordinary in a certain area, whether it is work or financial management. As a speck of dust in the long river of history, direction selection is often bigger than personal efforts. Only by improving one’s cognitive skills can one seize opportunities. Trend trade, go with the flow. Choose to invest in leading stocks of strong sectors that are rising in the market, and choose to work or start a business in cutting-edge fields in rising industries during the development time. Maybe if you do this, the probability of changing your fate will be greater.
Why is it said that you should try not to go with acquaintances and friends on long-distance travel? This is not a joke. I tell you through painful lessons that if you fail to do these three things, you may become enemies when you come back from traveling together!
I once had a good friend who was from the same neighborhood as me and worked in the same city. I met him at a meeting of fellow villagers. We later got into a good talk and became good friends.
Since we work in the same city, we often meet up on weekends to hang out, have dinner, go camping, and go on day trips with groups. At that time, it could be said that we spent almost every weekend together and talked about everything. We all thought that we had met a partner in our lives.
If it hadn’t been for a trip to Yunnan later, maybe the boat of our friendship wouldn’t have sunk so quickly!
During the Chinese New Year that year, I didn’t go back to my city. I went camping to Yunnan alone. I also made a meeting with my fellow travelers from all over the country to spend the Spring Festival in Lijiang. It was a very happy and enjoyable vacation experience. I fell in love with backpacking alone.
After returning from Yunnan, I shared the beauty in Yunnan with my friend and brought her an original music CD from Yunnan. She liked it very much and said she wanted to go, so I must take her there once I have the chance.
So, during the Spring Festival of the next year, we went to Yunnan together. Unexpectedly, it was this trip to Yunnan that caused the two of us to drift apart, until we no longer touched each other.
I have also reflected on our relationship over the past few years. We used to talk about everything. Why did it change after a trip to Yunnan? In fact, the main reason is that there are many problems between us that were not found before. It can be said that It was a trip that neither of us enjoyed.
The first reason is because of the problem of taking shots.
Although I like traveling and have been to many places across the country, I really don’t have much study on taking pictures and framing, and I don’t pay much attention to the quality of taking pictures. I just rely on my own feeling to take pictures of people.
But my friend has very strict standards when it comes to taking photos. How to frame the scene, how to make people look better, and how to make their legs look longer. Taking a photo takes a long time to study, and you have to take a picture, delete it, delete it, and take a photo. Shoot repeatedly until you are happy.
On this point, the two of us had an argument. She was very unhappy with my photography skills. She even got angry and blackfaced, saying that she would never want me to take pictures of her again, which made me scared to take pictures of her.
I was also a little dissatisfied with her request for too many pictures. You know, there are so many beautiful scenery in Yunnan. It would take her half an hour to take a shot in one place. Too much time was lost along the way. We There is not much time to see other sights.
Therefore, she was unhappy with my photography skills, and I was dissatisfied with her taking pictures because it was a waste of time.
The second question is a question of character.
I am a person who prefers freedom, and I also like to meet new friends while traveling. I have always thought that meeting new friends while traveling is also a part of travel. I can meet people with whom I can chat and have common themes. , I will feel it is a very happy thing.
But my friend doesn’t like it. She only likes to play quietly. She doesn’t want to meet any new friends along the way, and she doesn’t want to play with other people. This is the main reason for the sad things that happened later.
When we went in Yunnan, our first stop was Lijiang. After spending two days in Lijiang, we went to Shangri-La, and then from Shangri-La to Dali.
Dali can be said to be a place that I like very much. Before I came to Dali with her, I had already told her a lot about Dali, how much fun I had in Dali the year before, and how much fun it was here. , she is also looking forward to coming to Dali.
Unexpectedly, it was in Dali that the two of us split ways!
I remember that when we got in Dali, it was already getting dark in the afternoon. We picked a youth hostel to stay in. At that time, there were several young people busy making barbecues in the courtyard of the youth hostel. The owner of the youth hostel was very special. Easy-going and enthusiastic, when we checked in, he told us that we would all have a BBQ tonight. Would you like to join us?
My friend and I asked, should we participate? She said that she felt a little tired and didn’t want to join. If you want to join, just go by yourself.
At that time, I thought she might be really tired. After we checked in, we went out to eat some Dali rice noodles, and then she went back to her room to rest.
I saw her going to rest, so I went to the barbecue planned by the owner of the youth hostel. That night we all had dinner together and had a great time. A group of people had a barbecue together in the yard and talked together. Some were singing and some were playing music. The whole mood is very happy and lively.
After 12 o’clock in the evening, I went back to the room and found that my friend was already asleep.
The next day, early in the morning, I got up and sat on the roof of the inn to bask in the sun. The blue sky and white clouds in Dali and the warm sun made me lazy and relaxed.
Unexpectedly, I got a text message from a friend saying that she had left earlier and returned to Guangdong. When I saw that text message, I was shocked and understood that maybe these few days of travel had exhausted our several years of friendship.
At that time, I realized that there were so many differences between us. I used to think that we were good friends and besties, but after we went on a trip, I found that we were not. Many details that were not found at ordinary times were highlighted during the trip. Just like that, we never traveled together again, and then we gradually lost touch.
There are several reasons why it’s best not to go with acquaintances and friends when visiting. If you can’t do that, you really shouldn’t go together. You might become enemies when you come back!
Your true nature will be exposed while moving Good friends are not necessarily good travel partners. In normal life, we don’t spend too much time in contact with each other. Occasionally we get together to have a meal and chat, or go on a short trip and you won’t find too many troubles.
And if it’s a long-distance trip, it’s the same. They spend almost all time together except sleeping. Such intensive contact can easily reveal a person’s nature, such as some behaviors and habits that they cannot accept. You might think, didn’t you expect him/her to be such a person?
In daily interactions, the other side that is not found will be exposed during travel. If you cannot accept this, you must not travel together. Once you go there, there will be a gap, and you will never be able to play together again.
It is easy to have arguments When hanging out with friends and coworkers, the more people there are, the more disagreements there will be. Everyone has different ideas. Some people like to play casually, and some people like to play lively. Some people like to stay in luxury hotels, while others want to stay in cheap hostels. Some people like to eat better, and some people have no needs for food. These seemingly small problems will cause differences because of everyone’s different ideas.
Take housing as an example. Some people want to stay in a hotel or a youth hostel. People who stay in hotels don’t feel anything wrong, which is normal, but people who want to stay in youth hostels may not think so. They are all staying in hotels, so why not choose to stay in a cheaper place.
If you want to settle with a hotel and stay in a youth hostel, this person will feel uncomfortable and will definitely think, why can’t you have more fun and save money on accommodation?
If there are differences during travel, and everyone disagrees and cannot stand each other, in this case, it is best not to travel together and lose one friend at a time.
Questions about usage When moving, spending money is a big problem, and it is also the most likely to go wrong. Some people may say that if we hang out together and are all good friends, I will treat you to this meal, and he can treat me to you next time. I’ll pay for the room tonight, and he’ll pay tomorrow night.
It’s not that simple. You pay once and he pays again. After a few days, some people may feel that they paid too much and suffered a loss. Although he didn’t show it on the surface, he already had thoughts in his heart. If there are problems in life in the future, these little things will be brought out.
So, spending money is a big problem. If you don’t plan the budget in advance, it’s wrong to spend the money. Although these are small things, as long as everyone can accept each other, these are not problems. I am afraid that someone will care about them in their hearts and outwardly. Without talking about it, it gradually became a barrier between the two.
In short, when traveling with acquaintances and friends, if you cannot stand each other, have a strong relationship, share the same views on consumption, and share the same views on consumption, it is best not to travel together.
After all, good friends don’t necessarily make good travel partners, what do you think?
As I delved into the life stories of a large number of successful people, I noticed one thing in common: Most of them went through a time of hardship and self-doubt early on.
If you are going through this difficult time, don’t give up too fast. You know, the big guys we look up to now went through the same problems. As long as you have the right methods, you can quickly get rid of poverty and inferiority complex, and gradually improve your life.
Today, I want to share the knowledge of a 99-year-old rich man. His life story can show you to a way out of poverty and low self-esteem.
This rich guy is Charlie Munger. Even “Stock God” Buffett admitted that it was Munger who broadened his horizons and allowed him to quickly evolve from a “orangutan” to a “human”. Without Munger, he said he would be much poorer than he is now.
Munger’s starting point in life was not high. When he was at his poorest, he had to support 8 or 9 children, was loaded with millions in debt, and his wife also left him. But he did not give up, but depended on his own wisdom to get out of the predicament.
I summarized Munger’s wisdom and found that he basically relies on the following three cognitions to “save himself.” Read it carefully, you will be very inspired!
The art of backward thinking Want to get rid of poverty and low self-esteem? Then learn the art of reverse thinking first. This is the heart of Munger’s wisdom!
Most of us think forward and happily, but reverse thinking is to reverse this habit. For example, many people ask: “How can I make more money?” This is positive thought. But what if we flipped it around and thought, “How can I not make money?”
You may find that it is often easier to solve problems using reverse thought. Because there are thousands of ways to make money, and the methods that are good for everyone are different. Finding the one that suits you is as difficult as finding a needle in a haystack. But if you think about it the other way around, you will find that there are actually only a few reasons for not getting money, such as laziness, weakness, lack of perseverance, etc. As long as you avoid these reasons, making money will no longer be a problem.
This way of reverse thinking can be applied to all aspects of life. For example, if you want to find a high-quality boyfriend or girlfriend, positive thinking may get you into trouble, because everyone’s conditions and standards are different. But if you think about it in reverse: “How can I not find a quality boyfriend or girlfriend?” You will find that there are only a few reasons, such as selfishness, laziness, carelessness, etc. Just avoid these reasons and you’ll be on your way to finding a great partner.
Munger also often uses reverse thought when investing. He will not ask himself: “Why is this company worth investing in?” but will ask: “Why is this company not worth investing in?” If he can easily find the reasons for not investing, then the company has been removed from his consideration. If you can’t find the reason, then the company is worth investing in.
Why is reverse thinking always easier to solve problems than forward thought? Because most people think in a positive way, if a problem still exists, it means that positive thinking cannot fix the problem. There are always pros and cons to everything, so backward thinking can often solve problems more easily.
So how do ordinary people adopt the habit of reverse thinking? Remember one principle: reverse the way of the problem.
For example, you are about to join in an interview, and the question you face is: “How can I pass this interview?” The “pass” here should be flipped, and become: “How can I fail this interview? “In this way, you will find that there are only a few reasons for failed talks. As long as you avoid these reasons, you can easily pass the interview.
Don’t believe in yourself too much! Many people suffer from poverty and low self-esteem in their lives, and one of the key reasons is that they are always too sure of themselves and think that all their thoughts are perfect.
So, do you know what the rich people like to do the most? That is to constantly deny yourself. They never think they are right all the time, and every once in a while, they overturn their past views.
This is to avoid your thinking from becoming rigid. If you don’t overturn your own ideas, those opinions you agree with will take root in your heart, becoming stronger and stronger, and becoming more and more unshakable.
The so-called rigidity of thinking means that no matter how the outside world changes, our thinking stays unchanged.
Many people once thought that the only way to make money was to work and start a business. But is this really the case? Nowadays, there are many ways to make money. Some people only need a cell phone and computer to make more money at home than working part-time. Rigid thinking will only make you miss more chances.
For another example, more than 10 years ago, you might have thought that it was normal for men to lead the outside world and women to lead the inside. If your thought is rigid, you will still believe this until now. But in fact, the idea of the male leading the household and the female leading the household has long been outdated. This rigid thinking will only constrain you and affect every choice you make.
The apps, mobile systems and games we use need to be changed frequently in order to better serve users. So why don’t we update our thinking to better serve our lives?
Therefore, we need to constantly deny ourselves and repeatedly break and reorganize those ideas that are not yet deeply ingrained. In this way, the thoughts in our minds will always be in a state of movement and renewal, and there will be no chance of becoming rigid!
I want to stress that we need to distinguish between denial and attack. What we should do is deny, not attack.
For example, you think people should make more friends. So, if we deny ourselves, we should tell ourselves: The idea that people should make more friends may not be right. What should be a more correct approach?
But some people may go wrong. They may think that the idea that people should make more friends is completely wrong. This will defeat ourselves and easily make us lose faith. This way of thinking is not recommended.
A knowledge that will change your life for the better quickly! Mr. Munger once proposed a magical cognition that can make life’s problems disappear quickly, that is, the tendency to give back.
Let me tell you a story and you will understand.
Suppose you are going to buy a house worth 1 million, so you find an agent to accompany you to view the house. However, you are not clear about your needs, so you have asked the agent to look at the house with you more than a dozen times, but you still have not booked a house. However, this person has never shown any impatience. He always enthusiastically helps you analyze the benefits and disadvantages of the house, and he always patiently answers your various questions. By the time you finally decide to buy the house, the price may have grown to $1.5 million.
This extra 500,000 is actually your message to the intermediary.
Do you still remember what Feng Lun once said about the business habits of Chaoshan people? Some Chaoshan people will bring 200,000 in cash before doing business. If the business is negotiated, the 200,000 will be a deposit; if the business is not negotiated, the 200,000 will become a meeting gift.
Some people may think that this is too much of a loss, but in fact it is a smart business strategy. If the business is discussed, giving 200,000 first will make the other party feel that you are very sincere, so they will give you feedback as soon as possible, so that the business can be implemented quickly. If the business fails to be settled, some Chaoshan people will still give you 200,000 yuan, and this money is like a hot potato in the hands of others. They will introduce you to some big business. Do you think you are still losing money with this 200,000 yuan?
Human nature is to like immediate news. When we receive gifts from others, if we do not give some feedback as soon as possible, we will feel that we owe others and feel very uncomfortable.
In life, we can use this desire to give back to gain more benefits, and to hell with poverty and low self-esteem! When you join a new company and order some milk tea for your office buddies, you will find that you will be like a fish in water in this company.
If you face some problems at work, treat your colleagues to dinner and then ask them for advice. You will find that your colleagues will be very patient if you ask for help several times.
Although it took me a lot of time to write this useful article, I think that everyone knows how to give back, and I will get more likes and attention because of this!
To achieve this, the most difficult thing is to beat one’s own psychological barriers. Many people think that being kind to others first is a kind of flattery and cannot save face.
Let me tell you a way. You can tell yourself constantly in your mind how much benefit you can bring to yourself by being kind to others first. Human beings love interests, so you will start to be eager to try.
Then, you can do something good to others that you can easily do, and look at the effects. You will find that you can really gain, and then you will be more willing to use the feedback tendency!
If you buy a stock and lose 30% of your money, how much does it have to go up before you get your money back? It’s not 30%, but 42.8%. Take the case of a stock that you buy for 10 yuan and then its price drops by 30%. It will now be worth 7 yuan. Even if the price of the stock goes up another 30% and ends up at 9.1 yuan, you will still lose 9%. Before you can make money, the stock price has to go up by 42.8%. Take the trap away. As the depth of the trap goes up, it gets harder to get out because the base changes. If you are stuck by 50%, you need to rise by 100% to unwind, let alone make money.
Therefore, after a stock loses 30%, if you want to unwind the trap as soon as possible, you really need to raise your position. However, there is an important problem here. You will not only not be able to get out of the trap, but you will lose more if the stock falls by 30% and then you raise your position.
Let’s make an assumption first. The original price is 100 yuan. You bought 1,000 shares, which is 100,000 yuan. When it drops to 30% to 70 yuan, you cover your stake by 1,000 shares and add 70,000 yuan. At this time, you have spent a total of 170,000 yuan, and you hold a total of 2,000 shares. Now it has fallen by 90%. The stock price has dropped to 10 yuan. Your two thousand shares must now be worth 20,000 yuan. That is to say, you doubled your stock after falling by 30% and now you have it. A total loss of 88.3%. So do you think we need to cover our positions?
So, this is actually an open question with no usual answer.
For investors who are stuck, here are two strategies for covering positions as a guide, which are divided into strategic covering strategies and tactical covering strategies. The difference between the two is:
(1) Strategic position covering is usually used for unwinding, while tactical covering does not take unwinding as the main purpose. Its key goal is to lower the cost of holding positions through rolling band operations and provide convenient conditions for unwinding in the future.
(2) Strategic cover-up is a long-term operation method, while tactical cover-up is used for short-term operations. Sometimes, it is even an ultra-short-term operation way of intraday “T+0”.
There are three factors for strategic replenishment:
(1) The stocks stuck in the hands of investors have investment value and speculative value, and the stock price has seriously deviated from its value.
(2) The trapped stocks in the hands of buyers have been severely and deeply locked up. With the natural trend of the stock, there is no hope of unwinding in the short run.
(3) The stocks trapped in the hands of investors have been badly oversold, and there is not much room for downside in the market outlook.
Relatively speaking, there are not too many conditions for tactical cover-up, because tactical cover-up is a short-term operation, so it does not need to pay too much attention to the fundamentals of individual stocks or whether the stock is oversold, nor does it need to pay attention to whether the stock is currently in a deep position or a deep position. For shallow positions, even for profitable stocks, if you think there is still an upward trend in the market outlook, you can also cover your investment. Therefore, tactical position covering can be split into two types:
(1) When the current market price is higher than the purchase price, in order to expand the results, a profitable tactical position covering is chosen to increase the amount of follow-up.
(2) When the current market price is lower than the buying price, a quilt-type tactical cover-up similar to grabbing a rebound is taken.
The reason why we split position covering into strategic position covering and tactical position covering is because the two are different in scope of application, selection strategy, implementation method and operation skills. Investors must adopt different methods of covering places and choose different application strategies according to different personal situations.
In most cases, covering a position means buying stocks that you already hold. Since you are already familiar with the nature of the stock, the chance of making a profit is naturally high. However, investors also need to break away from the limitations of inertial thought when covering their positions: they can also cover their positions in stocks they do not hold. Some buyers have narrow vision and determine that they must make up for the loss in that stock. In fact, if you lose in share A and earn back in share B, the result is exactly the same.
Because the end goal of investors covering their positions is to reduce the overall cost of holding positions. Therefore, whether to choose stocks that you have bought before when covering a trade is not the key to the problem. The key is to spread the cost as much as possible. For this reason, buyers do not need to limit their right to choose stocks.
Let me share with you some useful places to cover positions.
The K line is above the 5-day line, and the 5-day line is above the 10-day line.
If the trap does not exceed 3 points, you do not need to cover the spot. If you step back on the 5-day line and do not fall below it, it will rise again and have the chance to unwind or make a profit;
If it exceeds 3 points, you can cover the position when the 5-day moving average does not fall below, so that the cost can be reduced to close to the 5-day moving average, and the chance of unwinding the profit is high.
The K line is between the 5-day line and the 10-day line. The 5-day line is above the 10-day line.
If it falls below the 5-day line after being trapped and fails to stop the loss quickly, you can cover the position when it reaches the 10-day line and does not fall below the 10-day line, so as to reduce the cost to below the 5-day line. If the counter move does not break through the 5-day line, unwind and sell; if the counter move breaks through the 5-day line, unwind and make a return.
If there is no operation, wait and see until it is clear that the way is in operation. If you buy on the 5-day line and the 10-day line, you can hold or raise the position if it breaks through the 5-day line. If it goes below the 10-day line, reduce the position or stop the loss; if you don’t want to stop losing, you can stay away from the 10-day line for more than 3-5 days. Cover the position after clicking, lower the cost to close to below the 10-day line, wait for the counter-draw of the 10-day line, if it does not break through the 10-day line, sell, break through and hold.
The K line is below the 5-day line and the 10-day line, the 5-day line passes the 10-day line, and the 5-day line is below the 10-day line.
If you are caught and the 5-day moving average crosses the 10-day moving average, it can fall close to or fall below the 21-day moving average. If it does not successfully fall below one of the above moving averages for 3 consecutive trading days, you can cover your position and reduce the cost to the 10-day moving average. Near below the line, if the counter pull breaks through the 10-day line, and at the same time the 5-day golden cross daily antenna can be profitably held; if the rebound does not break through the 10-day line, it meets resistance and falls back to unwind and sell.
If it successfully falls below the 25-day line, it can stop falling to the upper and lower 30-34 day line to stabilize and cover the position, so that the cost can be reduced to below the 10-day line. If it breaks through the 10-day line, the 5-day line will be golden cross at the same time. The 10-day line can be held profitably; if the rebound meets resistance, the 10-day line falls back to unwind and sell.
The K line is below the 5-day and 10-day lines, and the 5-day moving average crosses the 10-day line, ultimately falling below the 21-day line. The K-line stops falling above and below the 55-60 day line to stabilize and cover positions, lowering the cost to below the 10-day line. Near the bottom, if the recovery breaks through the 10-day line, and at the same time the 5-day moving average crosses the 10-day line, you can make a profit and hold it to see if it breaks through the 21-day line and then sell at a profit. If it breaks through and continues to hold upward, look for the next goal. Pressure is on the 30-34 day line and the 55-60 day line; if the rebound meets resistance, the 10-day line falls back and sells.
Three common job management techniques:
Rectangular position management
The rectangular position management method is the most widely used position management technique. The half and one-third positions we often talk about are standard rectangular position management methods. I think all dealers know this. The so-called rectangle position is the beginning. The amount of funds entering the market accounts for a fixed share of the total funds. When opportunities appear later, positions will be added according to this fixed proportion.
Take Yangtze Investment as an example. The stock in the box changes after it rises. If investors chase the high and build a position here, in order to prevent the stock price from falling and being totally trapped, they can buy one-third of the total position, and then increase the position sequentially when the stock price falls. One part of the warehouse.
The advantages of this operation: On the one hand, if the stock price falls, all positions will not be locked up, and stockholders can use extra positions to dilute costs, which greatly reduces risks. On the other hand, if the stock price rises directly as expected, if there is a certain proportion of positions in it, there is still room for profit, and you can also add positions in a timely way during the adjustment process, keeping the initiative in your own hands.
Pyramid role management
When stock buyers hear “pyramid”, they probably know what it means. Pyramid position management is to buy a big position when you start to build a position. If the stock price rises in the market, you will add positions in sequence, and the proportion of each increase will decrease; if the stock price If it falls instead of rising, then no extra position will be added.
Since the proportion of opening a position is greater than the proportion of adding a position, this process not only increases the profit margin, but also increases the risk of loss. If you are very sure in your prediction, you can buy in this way. As long as the stock moves according to your predictions, you will definitely make more money than the rectangular position.
Funnel-shaped position management
Funnel-shaped position management is exactly the opposite of pyramid-shaped position management. When building a position, you buy a small holding. If the stock price falls in the market, you will gradually grow the position. Each time you increase the position, the proportion of the position will grow, thereby diluting the cost.
This method is good for when the market is volatile. In order to reduce the chance of loss, the proportion of early positions should be small. If the stock price drops, increase your position so that you can easily recover your cash. Of course, profit margins will also reduce if the stock price rises.
The picture below is the early trend chart of Dongxu Optoelectronics. Due to the large increase in the early period, the stock faces the risk of correction in the short run. If investors are chasing highs and buying at 14 yuan, in order to reduce risks, they can use funnel-shaped position management. They buy with a small position first, and then gradually grow the position after the stock price falls. Each time you add a position, the cost will be reduced, and you can make a return once the stock price rebounds.
Finally, I will share with you some simple and easy-to-learn ways to solve the problem.
Inverted pyramid pose
The inverted pyramid means that when buyers perform unwinding operations, the amount added each time is more than the original position. This method is more perfect for investors who have been locked in at a high level. Every time the stock price falls below an integer price, they can increase the number of stocks bought until a bottom is formed.
Share swap method
That is, when you feel that there is really no chance for your own stock, you can choose a stock that is close in price to your own stock and has a chance of rising. That is to say, exchange it for a stock that has the hope of growing at the same price (or basically the same price). , allowing the stocks bought later to offset the losses caused by the fall of the stocks bought earlier.
Clearance method
Generally speaking, stocks that fall below the long-term trend line (moving average) mean that the situation is going bad. Then, when they fall below these technical levels and the rebound is unable to return, they must clear their positions. The exact clearance levels are shown in Figure 1 below.
In the following time, you must wait patiently for the stock to bottom out. For example, as shown in Figure 1, if there are three straight lows and rise, you can buy back the early clearance chips along the lower lows. Points A to D are all chances to buy back, but the first two lows can only be used to test buying. After all, the bottom trend is still going on to avoid another downward trend.
Generally, this method can make more chips in the early stage, and the loss can be realized without waiting for the early selling position.
Fight and flee at the same time
After individual stocks fall below the trend support line, there will usually be a technical rebound. However, if the first rebound cannot recover the previous upward trend line, that is, the pink line in Figure 2, do not think that it is digging a hole to wash the market. At this time, the stock There will be a new round of fall. Positions 1-2 in Figure 2 are all high selling points.
If you operate under such circumstances, you will usually only suffer a small loss, and you will never be deeply trapped or suffer heavy losses.
When the general trend goes bad, if you can lose less, you will make money and win. This will keep enough strength for the arrival of the next wave of market conditions.
Sell high and buy low
Generally speaking, stocks with a pretty obvious downward trend and a downward channel that can form a 10% fluctuation space are suitable for this method. Of course, investors must have great technical skills.
In a downward range like Figure 3, positions like 1-4 are low buying points, while positions like A-4 are high selling points. Usually, such a downward trend has strong regularity and is perfect for high selling operations in the swing band. However, the link that is prone to problems is that once the stock rises to the A-D point on the downward trend, some people are prone to fantasy and nostalgia, thinking that the stock will rise unilaterally, so they hesitate in their minds and do not sell. As a result, they cover their spots. The chips are stuck again.
Therefore, it is stressed that such operators need good technical means for protection and excellent psychological quality.
After investors are trapped by buying stocks, the first problem they face is that they must choose between selling or staying, that is, picking between stopping losses and covering stocks. The author thinks that the following criteria can be referenced when making specific choices:
Distinguish whether the buying behavior that caused the hold-up is speculative buying or business buying. Investors who choose stocks based on the fundamentals of listed companies and from the viewpoint of investment value can learn from Buffett’s investment philosophy and do not need to care about the temporary rise and fall of stock prices.
Distinguish whether the buying process is a bottom shoveling type buying or a rising buying type. If it is a chasing-up buy, once you find a mistake in judgment, you must stop the loss decisively. If you don’t have this determination, you can’t join in chasing the rise.
Distinguish whether this prediction is a short-term operation or a medium- and long-term operation. The biggest failure in short-term investing is not how much profit or loss you make at the moment, but turning short-term into mid-term or even long-term due to a single mistake. People who cannot stop losses are not suited for short-term operations and will never become short-term experts.
Recognize whether you are a careful investor or an aggressive investor. It is important to recognize one’s own operating style and good operating skills. If some investors have enough time to watch the market and have a feeling during the market, they can lower the holding cost through intraday “T+0” or short-term short selling.
Distinguish whether the market measure is at a higher position or a lower position when buying. When the market index is high, especially when there are many gains in the market, investors are complacent and should consider stopping losses when they are boasting.
Distinguish the possibility for decline in the market and individual stocks. If there is a large room for decline in the market outlook, we must resolutely stop losses, especially for some stocks that were relatively popular in the early stage and made huge gains.
Distinguish whether the main force is washing the market or shipping. If it is the main force shipping, we must stop the loss resolutely and totally. But remember: the main force’s shipment may not be at a high level, and the main force’s cleaning up may not be at a low level.
According to the weight of your position, if the position is too heavy and you are trapped, you should properly stop the loss of a part of the stock. This is not only to avoid risks, but also to stabilize your mindset.
The law of inertia: Follow the general trend of the stock market
A successful investor should pay great attention to how to apply his information in stock trading. He will not ignore the details because of the boring application of this information. In daily life, acquiring knowledge is generally not difficult; the difficulty lies in applying this knowledge with perseverance. When it comes to stock trading, I firmly think that “it’s easier said than done”.
The “Law of Inertia” means that if there is no external force pushing objects in nature, moving objects will always move and static objects will stay at rest. This phenomenon not only appears in nature, but also manifests itself more fully in the stock market.
The “law of inertia” warns investors that they must follow the direction of the stock market. No one can change the way of rising or falling, and do not be smart enough to predict the so-called “top” and “bottom”. You can succeed by following the rising and falling lines, but investors who go against the trend can only be losers. .(1) Those who rise will always rise, and those who fall will always fall.
In the stock market, if there is no special impact of buying or selling power, the rising stock price will always rise, and the falling stock price will always fall. This is why the stock market often has a big bull market or a big bear market, because until the basic environment or supply and demand relationship does not change, the upward trend will continue; on the contrary, the falling trend will also continue. Some investing experts point out that unless stronger supply or demand forces are added, stocks that do not move will never move, stocks that rise will always rise, and stocks that fall will always fall. The stock price does not rise or fall or is circling, showing that the forces of supply and demand have reached a balance. Unless the supply side strengthens the power or the demand side strengthens the power to break the equilibrium state, otherwise, the stock price will only fluctuate slightly; the stock price can form an upward trend, showing that the buying power exceeds the selling power. If demand continues to be greater than supply, prices will surely continue to rise. At that time, the growing momentum will stop and start to fall; on the contrary, once the stock price forms a downward trend, it is the result of the selling force being greater than the buying force. Only when the buying pressure is stronger than the selling pressure, will it turn Fall becomes rise. Otherwise it will keep falling.
Just like the movement of anything has its own laws, the movement of stock prices also has the inevitability of its own growth. It is the result of the comprehensive action of many political, economic, psychological and other forces, and is not dependent on anyone’s will. The key to profit from stock market investment is to follow the direction of stock price development, buy long to make profits when the stock price rises, and short to preserve value when the stock price falls; on the contrary, if it goes against the trend of stock price movement, short positions will be taken during the rise of the stock price. If you go short or go long with a full trade while the stock price is falling, you will definitely not make money, and you will even suffer financial losses.
(2) Keep up with the big trends, regardless of small changes
Generally speaking, changes in stock prices have three trends, namely long-term trends, medium-term trends and short-term trends. The ongoing changes in stock prices are the result of these three trends. As long as the peaks and dips in the upward trend exceed the height of the previous peak and trough, then the market trend is an upward trend. As long as the peaks and dips in a downward trend are successively lower than the height of the previous peak and trough, then the market trend is a downward trend. In short, an uptrend is manifested in a series of rising peaks and troughs, while a downtrend is manifested in a series of falling peaks and troughs.
The so-called general trend refers to the direction of the stock market growth in the next year or several years, that is, the long-term trend. Although there are different small reverse fluctuations in the general trend, they will not change the direction of the general trend. Only by working in compliance with the general trend can you make money and avoid losses.
(3) It is you who are wrong, the market is always right
This must not be an excuse for buyers to make mistakes. Because stock market investment takes specialized knowledge and skills, rich experience, good psychological quality and courage, etc. If you do not have these qualities and join the market rashly, you may not be able to taste the nectar of the stock market, but only the bitter pill. For investors, buying in stocks is not of interest to everyone. The best way is to choose investment ideas that you think are suitable.
For stock investment, the objectivity of the stock market is primary, and their own knowledge of the stock market is secondary. Investors must constantly transform their subjective world, transform the relationship between their subjective world and the objective world, and try to make The subjectivity comprehensively and correctly reflects the objectivity of the stock market.
For investors, the first idea that should be established is that the market is always right, and you will only be wrong. There is nothing wrong with the stock price trend, and it cannot be wrong. The reason why I lost money is because I failed to keep up with the pace of the market and failed to understand the pulse of the market. You didn’t do long when you should be long, you didn’t go short when you should be short, or you did the opposite. This is the underlying reason for your failure. The market is the master, and buyers themselves are the servants. Only by constantly adapting to the market and making friends with the general trend of the stock market is the way to win in the stock market.
There is a new and sometimes strange thing happening in society right now that we can see from anywhere, from a busy street to a quiet alley. The market has always been led by young people because of their energy, desire, and willingness to buy.
But have you noticed some changes? They may be small or big, but they’re there. In other words, “reverse consumption” is slowly growing and changing how we think about consumption and how markets work. What’s making young people start to buy things the other way?
1. Consumption in reverse If we look at the direction on the used market, we can see a kind of quiet resistance and small changes through a gap.
Young people are almost whispering to us behind this half-closed market door that “new” isn’t always the best and that they’re no longer ready to give up when things get hard. Driven by consumption.
Behind this shiny market economy, there is actually an unknown “grassroots” consumer culture.
Take the second-hand market, which has received much attention in recent years. According to data from research institutions, it is expected that the scale of the global second-hand market will expand quickly in the next few years.
It may hit a scale of US$64 billion by 2025, with young people, especially Generation Z, becoming the main force in this market growth.
Convenient Internet technology and an increasingly perfect logistics system have built a platform that provides endless possibilities for this kind of “reverse consumption”.
On online second-hand platforms such as Taobao and Xianyu, as well as in offline flea markets in communities, what we see is that the younger generation shows an environmentally friendly, rational and efficient attitude in consumption choices.
They traded items they no longer needed for others’ idle items. In the process, they not only reduced waste, but also took a good step towards environmental protection.
When it comes to the sharing economy, we have to mention its quietly rising effect in today’s society. Breaking out of the purchasing system, leasing and sharing have become new consumption choices.
It is not difficult to see that more and more young people choose shared bicycles and shared cars for travel, and young tourists choosing short-term rentals when living have gradually become a new trend.
Their choice has reduced their own financial load and also alleviated the traffic and living pressure in the city to some extent.
Reverse consumption is also mirrored in the resistance to meaningless spending. Some young people refuse to participate in consumption behaviors that are only for the goal of form, showing off or competing for vanity, such as resisting excessive packaging and refusing to participate in blind discount shopping frenzy.
These behaviors are actually their actions to question the popular consumer culture and to find a more meaningful way of consumption.
This door to the market may be the key that can lead us to study the nature of consumption. It is not just a simple transaction of buying and selling, but an exchange of ideas and a collision of cultures. Behind this are many thoughts about freedom, reason, duty and the future.
This may mean that in the near future, we will see a more diverse, inclusive and rational consumer market. Here, everyone can find the most suitable consumption method based on their own values and wants, rather than being dominated and controlled by the market.
2.Young people’s choices In the consumer world of young people, we seem to be standing at the junction of a multi-dimensional space, looking at a group of brave young people who are going forward with their own ideas and crossing the gap between tradition and modernity.
These “black and white” labels may not be able to describe their inner world, because in their eyes, the middle color may be the best color to find balance.
Getting interested in environmental protection, rational consumption, and the sharing economy, every attempt by young people is breaking the conventional framework one after another. In a sense, this is not totally a disruption, but more like a bottom-up reconstruction.
In our eyes, they are “impulsive” and “immature”, but in their own world, they are reinterpreting consumption and life in a unique way.
Those creative and imaginative young minds, listening to the voices of this age, eventually began to question the traditional consumption model. What they are looking for may be a new balance, a balance between “giving” and “receiving” Find the balance between.
Just like those hosts who choose to share their properties on Airbnb, and those tourists who tend to look for unique living experiences on the platform, what is reflected behind this is not only the exchange of materials, but also a new value. Try and pass on ideas and lifestyles.
In this fast-paced and efficient information age, young people are quietly becoming smarter and smarter with a more open and tolerant mentality, and are increasingly able to sift out knowledge that is helpful to them in the ocean of information.
They have learned how to find their own place through constant attempts and changes, and how to find the “middle color” that suits them best among multiple choices. And that “middle color” may be hidden in the love and respect for life.
When they are looking for valuable old items in the second-hand market, when they are looking for unique experiences on sharing platforms, they may not be simply making transactions again and again, but looking for a way to make themselves more connected with the world. The way it fits.
Looking back at history, we will find that in every era, young people always change or affect the world in a unique way, and this is a manifestation of social progress.
In this colorful and varied world, they choose to accept change, try bravely, and are not even afraid of failure, because in their eyes, those so-called failures may be just a door to a new world.
In this era of constant iteration and updating, young people’s continued exploration will surely become an inexhaustible driving force for the development of this society.
These young “reverse consumers” may be telling us: In this diverse and complex world, every decision we make is no longer isolated and simple. They are intertwined and jointly shape the face of the world, affecting every person and every collective.
Reverse consumption is more of an exploration leading to the future and a practice of life. It emphasizes rational utilization and efficient distribution. It also reminds us that on this increasingly crowded planet, every decision we make, All worth pondering.
Next time, when you stand on that corner and see a young man selling second-hand goods or borrowing a shared bicycle, will you have more understanding and curiosity to understand the new world behind it?
Let us explore more possibilities and choices together in this bright market and find our own “middle color”.
As the saying goes, homes are for living in, not for investment. This statement seems to get lost in the noise of the market, though, when home prices are going through the roof and investors see them as the “sweet potato.”
After the wind changed direction and home prices started to drop, everyone understood that the real estate market isn’t just a game of numbers; it’s actually the ups and downs of many people.
Who is going to really have a headache when home prices go down? Join me in finding this unknown layer.
Young Americans buying their first home Modern society sees owning a home as a sign of both a stable life and a high social standing. Despite having a lot of financial problems, they are trying hard to make it in the city and buy a house to fulfill their personal values and family goals.
However, when house prices began to fall, this investment that was once considered a sure profit suddenly became full of doubt, bringing unprecedented troubles and challenges to these young first-time home buyers.
Falling home prices directly lower the value of these young people’s investments. They have put in their hard work and savings and taken long-term loan pressure, hoping to obtain certain economic returns through the appreciation of their properties.
But falling house prices mean their investment profits are reduced or even turned into liabilities. This reduction in assets not only affects their financial position, but may also affect their family and life plans.
Falling house prices have increased the psychological pressure on young home buyers. Under the dual demands of society and family, they are already under tremendous psychological pressure.
Now faced with the continued drop in housing prices, they have to face more uncertainty and anxiety. This stress may cause them to lose confidence in the future, affecting their quality of life and feeling of well-being.
Falling house prices have also had an impact on the life plans of young home buyers. Many young people have certain life plans when buying a house, such as getting married, having children, job development, etc.
However, falling house prices mean their financial situation may become more strained, which may force them to change or postpone their original life plans. For example, they may take longer to pay off their loans or have to postpone plans to grow their family.
Falling house prices are also a problem for young people looking to sell their current property for a bigger home.
They originally hoped to receive more funds through property appreciation to improve their living conditions. However, falling house prices have made this plan difficult to achieve and may even lead to financial difficulties.
Falling house prices may also affect young people’s ability to borrow. Banks and other financial institutions often take the value of an applicant’s assets into consideration when considering a loan application.
Falling house prices mean that the value of these young homebuyers’ assets is reduced, which may cause them to have trouble applying for loans in the future, thus affecting their other consumption and investment plans.
Financial organizations In the real estate market, financial institutions play a pivotal part. They provide financial support to the market and promote real estate deals through loans and mortgages.
However, when housing prices show a downward trend, these financial institutions also face unprecedented risks and difficulties.
Falling house prices cause the value of debts to fall, increasing credit risk for financial institutions. A mortgage carries relatively little risk when house prices rise because the property is generally worth more than the loan amount.
But when house prices fall, especially if they fall quickly, the safety margin of the loan shrinks, and there may even be a situation of “negative equity”, that is, the market value of the property is lower than the loan balance.
In this case, the possibility of borrower default grows, and for financial institutions, the risk of non-performing loans increases.
Falling house prices may lead to a deterioration in the asset quality of financial firms. During the boom in the real estate market, many financial institutions issued a large number of housing loans, and real estate-related loans made for the majority of their loan portfolios.
Once house prices fall, the value of these mortgages will be directly affected, thereby affecting the general asset quality of financial institutions. The deterioration of asset quality will not only affect the profitability of financial institutions, but may also cause distrust among investors and the market.
Falling house prices will also increase liquidity risks for banking institutions. During a time of falling house prices, market confidence in real estate declines, and investors and consumers may reduce investment and consumption in real estate.
In this case, the number of new loans issued by financial institutions may drop, while the risk of deposit outflows increases. If financial institutions cannot effectively control their liquidity risks, they may face serious capital chain ruptures.
Falling house prices may cause a chain reaction that affects the stability of the entire financial system. The real estate market is closely connected with the banking market. The drop in house prices not only affects financial institutions directly involved in real estate loans, but may also affect other financial markets and institutions.
For example, a fall in house prices may lead to a drop in the value of bonds and stocks of financial institutions, thereby affecting the stability of the entire stock market and bond market.
Financial institutions also need to face regulatory and policy challenges when reacting to falling housing prices. In order to protect the stability of the financial market, regulatory agencies may adopt more stringent regulatory policies, such as improving loan standards and strengthening risk control.
Although these policies are helpful in reducing risks, they may also limit the business growth of financial institutions and increase their running costs.
Behind the decline in housing prices lies many complicated issues and challenges. This is not only an adjustment of the real estate market, but also part of the transformation of the economic system.
We cannot simply view the decline in house prices as a “cold winter” in the market, but should pay more attention to those groups who are affected in this process.
Only by understanding these deep-seated issues can we better react to market fluctuations and jointly embrace a more stable and healthy real estate market.
Information gap: I know, you don’t The knowledge gap is to be at the center of the storm and earn benefits that are not easily transmitted. The “can-for-airplane” business that can be called a unique business is to make money by taking advantage of the knowledge gap. In 1989, Mou took a train from Wanxian County to Beijing to sell bamboo and wicker wares. On the train, Mou Zhongzhi met a man from Henan. From his mouth, Mou Zhongzhi learned that the former Soviet Union, which was facing the crisis of disintegration, was planned to sell the Tu-154 aircraft, but could not find a buyer. So Mou Zhongzhi stopped selling bamboo and rattan items and started asking around for anyone who wanted to buy an airplane. Later, he finally found out that Sichuan Airlines was planning to buy a large aircraft, and Mou started to act as a “bad guy” among them. Result: This innovative cross-border business not only made him a net profit of 100 million from the middle, but also made him famous quickly. The monopoly of material will only make you poor, while the monopoly of knowledge will make you stupid. A person’s ability to receive information will directly determine his level of making money. The essence of making money is to take advantage of knowledge gaps.
Poor cognition: What I understand, you don’t understand There is a saying that goes well: Cognition determines the top limit, and hard work determines the lower limit. The harder the money, the harder it is to earn. The essence of making money is value exchange. When you are valuable, making money will be pretty easy. People can never make money beyond their skills. Every bit of your wealth is the realization of your understanding of the world. Every penny you lose is due to your flawed knowledge of the world. If virtue is not met, there will be disaster. The greatest fairness in this world lies in: When a person’s knowledge is not enough to control the wealth he owns, this society has ten thousand ways to harvest him. Until your wealth and knowledge meet.
Poor execution: You and I both understand, if you don’t do it, I will. Execution skill is the key to widening the gap between people. There is a story in “Bright Sword”: Li Yunlong talked with Zhao Gang about setting up a special team and selecting warriors who knew martial arts. Zhao Gang said, “Well, you should do this as soon as possible!” Li Yunlong said: “No need to hurry, I will go right away!”. In life, some people have many good ideas and thoughts, but they have yet to achieve results. In fact, what they lack is the courage to do what they say. To do something, instead of yelling at the top of your lungs, it is better to throw your arms away. Thinking is a question; doing is the answer. True execution is not an impulsive choice, but strong action and long-term persistence. People with strong execution ability set clear and feasible goals and then set a date for the goals. Push yourself to keep growing. Know how to review regularly, review at intervals based on the speed of progress, change your own pace, test results, and check for omissions and fill gaps.
Poor competition: You and I both do it, but I do it better than you. The way of heaven rewards diligence, the way of truth rewards kindness, the way of business rewards trust, and the way of industry rewards greatness. Rather than being broad and general, it is better to be specific and specialized. When you do something to the extreme, it is success.
A real great person is not about how skilled he is, but about what he does better than others. “Books from the Family of Zeng Guofan” says: “There is no other way to seek excellence in your profession than specialization.” Doing this, thinking that; sitting on this mountain, looking at that mountain, unremittingly, and changing your thoughts when you see something strange, you will achieve nothing in your life. Kazuo Inamori once said: “Don’t avoid things you don’t know or find difficult. Understand them first, and then master them. You will be better than others.
Because most people are unwilling to put in the effort to study and will be immediately eliminated, so your persistent efforts will take advantage of it. “
In this age of rapid change, knowledge is a person’s core competitiveness.
Studies have shown that the time needed to renovate the total amount of human knowledge has been shortened from 100, 20, and 10 years to about 3 years.
The rapid updating of information means that the competition in modern society is not only the competition of academic qualifications, but also the competition of learning ability. As the old saying goes: “Extensive knowledge leads to apprehension; thick accumulation leads to thin development.” “Bo Guan” means to be externally tolerant, to play widely, and to read a lot. “Approval” is a process of eliminating the clutter and retaining the essential, removing the false and retaining the true, and growing inwardly. By improving inwardly, being compatible outwardly, and jumping out of cognitive limitations, everyone’s future will have endless possibilities.
As I delved into the life stories of a large number of successful people, I noticed one thing in common: Most of them went through a time of hardship and self-doubt early on.
If you are going through this difficult time, don’t give up too fast. You know, the big guys we look up to now went through the same problems. As long as you have the right methods, you can quickly get rid of poverty and inferiority complex, and gradually improve your life.
Today, I want to share the knowledge of a 99-year-old rich man. His life story can show you to a way out of poverty and low self-esteem.
This rich guy is Charlie Munger. Even “Stock God” Buffett admitted that it was Munger who broadened his horizons and allowed him to quickly evolve from a “orangutan” to a “human”. Without Munger, he said he would be much poorer than he is now.
Munger’s starting point in life was not high. When he was at his poorest, he had to support 8 or 9 children, was loaded with millions in debt, and his wife also left him. But he did not give up, but depended on his own wisdom to get out of the predicament.
I summarized Munger’s wisdom and found that he basically relies on the following three cognitions to “save himself.” Read it carefully, you will be very inspired!
The art of backward thinking Want to get rid of poverty and low self-esteem? Then learn the art of reverse thinking first. This is the heart of Munger’s wisdom!
Most of us think forward and happily, but reverse thinking is to reverse this habit. For example, many people ask: “How can I make more money?” This is positive thought. But what if we flipped it around and thought, “How can I not make money?”
You may find that it is often easier to solve problems using reverse thought. Because there are thousands of ways to make money, and the methods that are good for everyone are different. Finding the one that suits you is as difficult as finding a needle in a haystack. But if you think about it the other way around, you will find that there are actually only a few reasons for not getting money, such as laziness, weakness, lack of perseverance, etc. As long as you avoid these reasons, making money will no longer be a problem.
This way of reverse thinking can be applied to all aspects of life. For example, if you want to find a high-quality boyfriend or girlfriend, positive thinking may get you into trouble, because everyone’s conditions and standards are different. But if you think about it in reverse: “How can I not find a quality boyfriend or girlfriend?” You will find that there are only a few reasons, such as selfishness, laziness, carelessness, etc. Just avoid these reasons and you’ll be on your way to finding a great partner. Munger also often uses reverse thought when investing. He will not ask himself: “Why is this company worth investing in?” but will ask: “Why is this company not worth investing in?” If he can easily find the reason for not investing, then the company has been removed from his consideration. If you can’t find the reason, then the company is worth investing in.
Why is reverse thinking always easier to solve problems than forward thought? Because most people think in a positive way, if a problem still exists, it means that positive thinking cannot fix the problem. There are always pros and cons to everything, so backward thinking can often solve problems more easily.
So how do ordinary people adopt the habit of reverse thinking? Remember one principle: reverse the way of the problem.
For example, you are about to join in an interview, and the question you face is: “How can I pass this interview?” The word “pass” here should be flipped and become: “How can I fail this interview? “In this way, you will find that there are only a few reasons for failed talks. As long as you avoid these reasons, you can easily pass the interview. Don’t believe in yourself too much! Many people suffer from poverty and low self-esteem in their lives, and one of the key reasons is that they are always too sure of themselves and think that all their thoughts are perfect.
So, do you know what the rich people like to do the most? That is to constantly deny yourself. They never think they are right all the time, and every once in a while, they overturn their past opinions.
This is to avoid your thinking from becoming rigid. If you don’t overturn your own ideas, those opinions you agree with will take root in your heart, becoming stronger and stronger, and becoming more and more unshakable.
The so-called rigidity of thinking means that no matter how the outside world changes, our thinking stays unchanged.
Many people once thought that the only way to make money was to work and start a business. But is this really the case? Nowadays, there are many ways to make money. Some people only need a cell phone and computer to make more money at home than working part-time. Rigid thinking will only make you miss more chances.
For another example, more than 10 years ago, you might have thought that it was normal for men to lead the outside world and women to lead the inside. If your thought is rigid, you will still believe this until now. But in fact, the idea of the male leading the household and the female leading the household has long been outdated. This rigid thinking will only constrain you and affect every choice you make. The apps, mobile systems and games we use need to be changed frequently in order to better serve users. So why don’t we update our thoughts to better serve our lives?
Therefore, we need to constantly deny ourselves and repeatedly break and reorganize those ideas that are not yet deeply ingrained. In this way, the thoughts in our minds will always be in a state of movement and renewal, and there will be no chance of becoming rigid!
I want to stress that we need to distinguish between denial and attack. What we should do is deny, not attack.
For example, you think people should make more friends. So, if we deny ourselves, we should tell ourselves: The idea that people should make more friends may not be right. What should be a more correct approach?
But some people may go wrong. They may think that the idea that people should make more friends is totally wrong. This will defeat ourselves and easily make us lose faith. This way of thinking is not recommended. A knowledge that will change your life for the better quickly! Mr. Munger once proposed a magical cognition that can make life’s problems disappear quickly, that is, the tendency to give back.
Let me tell you a story and you will understand.
Suppose you are going to buy a house worth 1 million, so you find an agent to accompany you to view the house. However, you are not clear about your needs, so you have asked the agent to look at the house with you more than a dozen times, but you still have not booked a house. However, this person has never shown any impatience. He always enthusiastically helps you analyze the benefits and disadvantages of the house, and he always patiently answers your various questions. By the time you finally decide to buy the house, the price may have grown to $1.5 million.
This extra 500,000 is actually your message to the intermediary.
Do you still remember what Feng Lun once said about the business habits of Chaoshan people? Some Chaoshan people will bring 200,000 in cash before doing business. If the business is negotiated, the 200,000 will be the deposit; if the business is not negotiated, the 200,000 will become a meeting gift.
Some people may think that this is too much of a loss, but in fact it is a smart business strategy. If the business is discussed, giving 200,000 first will make the other party feel that you are very sincere, so they will give you feedback as soon as possible, so that the business can be implemented quickly. If the business fails to be settled, some Chaoshan people will still give you 200,000 yuan, but this money is like a hot potato in the hands of others. They will introduce you to some big business. Do you think you are still losing money with this 200,000 yuan? Human nature is to like immediate news. When we receive gifts from others, if we do not give some feedback as soon as possible, we will feel that we owe others and feel very uncomfortable.
In life, we can use this desire to give back to gain more benefits, and to hell with poverty and low self-esteem! When you join a new company and order some milk tea for your office buddies, you will find that you will get along like a fish in water in this company.
If you face some problems at work, treat your colleagues to dinner and then ask them for advice. You will find that your colleagues will be very patient if you ask for help several times.
Although it took me a lot of time to write this useful article, I think that everyone knows how to give back, and I will get more likes and attention because of this!
To achieve this, the most difficult thing is to beat one’s own psychological barriers. Many people think that being kind to others first is a kind of flattery and cannot save face.
Let me tell you a way. You can tell yourself constantly in your mind how much benefit you can bring to yourself by being kind to others first. Human beings love interests, so you will start to be eager to try. Then, you can do something good to others that you can easily do, and look at the effects. You will find that you can really gain, and then you will be more willing to use the feedback tendency!
In this era of worldly desires, many people want to have more wealth, but the sources and forms of wealth are different. Some people make money by investing, some people make money by starting a business, some people make money by working, and some people make money by inheritance. No matter which way you choose, it would help if you had a certain vision and ability to seize opportunities and realize wealth appreciation.
So, what will become increasingly valuable over the next five years? Is it gold, stocks, real estate, or something else? In fact, these are only some of the important because their values will be affected by the market, with rises and falls, profits and losses. What can truly maintain or even appreciate are those things that are irreplaceable and have unique value. What are they? Let’s take a look!
education for children In China, education has always been an important topic and a huge market. Every year, in order to provide their children with a better education, countless parents spend a lot of time and money on enrolling in various training courses, buying various teaching aids, and even sending their children to study abroad. Their purpose is nothing more than to hope that their children can have a better future, be able to stand out in the fierce competition, and be able to realize their ideals and ambitions.
However, education is not a simple matter, nor is it a once and for all thing. Education requires continuous investment, constant updating, and adaptability to changes in the times. In this era of information explosion, knowledge is updated faster and faster, learning methods are becoming more and more diverse, and the content of education is becoming richer and richer. Suppose we stay in the traditional education model, repeat old knowledge, and just cope with exams, then the children’s education will lose meaning. In that case, they will be eliminated, and they will lose their competitiveness.
Therefore, the education of juniors should focus on not only the learning of basic knowledge but also the cultivation of innovative ability, not only the mastering of test-taking skills but also the improvement of comprehensive quality, not only the domestic vision but also the international perspective. Vision. Only in this way can children have more opportunities, more choices, and more development in the future society. And such education is a costly thing, and it is an easy thing. It requires the wisdom of parents, the expertise of teachers, the support of society, and national policies.
It is a long-term investment, a difficult undertaking, and a priceless asset. In the next five years, the education of juniors will become more and more valuable and important.
healthy body There is a saying that goes well: the body is the capital of revolution. In this fast-paced era, many people have neglected their physical health. In order to work and live, they sacrifice their sleep, stay up late, work overtime, and use various drugs to refresh themselves. They believe that as long as they have money, they can buy health, cure diseases, and enjoy life.
However, they were wrong. Although money is important, money cannot buy health, money cannot buy happiness, and money cannot buy joy. Once you get some diseases, there is no way to cure them. You can only wait for death and regret. Some people lose their health; everything loses their jobs, their families, their friends, and themselves.
Therefore, a healthy body is a priceless treasure and something that must be cherished. In the next five years, a healthy body will become more and more valuable and scarce. In this seriously polluted environment, in this world where viruses are raging, being able to have a healthy body is a kind of luck and wealth.
exquisite craftsmanship In this era of advanced technology, many people are pursuing high technology, intelligence, and digitalization. They believe that as long as technology is available, all problems can be solved, all miracles can be created, and all conveniences can be enjoyed. They disdain traditional craftsmanship, handmade production, and artistic creation. They all think it is backward and useless.
But again, they were wrong. Although technology is powerful, it cannot replace people, technology cannot replace the heart, and technology cannot replace the soul. Some things can only be made with hands, only with heart can they be done well, and only with soul can they make fine products. These things are crafts, art, and culture. They are human wisdom, human emotions, and the human spirit.
Therefore, exquisite craftsmanship is a rare thing and something that must be respected. In the next five years, exquisite craftsmanship will become more and more valuable and rare. In this world of machine manufacturing, possessing exquisite craftsmanship is a unique advantage, a rare charm, and a priceless wealth.
good relationship In this era of fierce competition, many people pursue personal success, their interests, and their status. They believe that as long as they have the ability, they can defeat their opponents, win respect, and gain happiness.
They don’t care much about interpersonal relationships, partners, and friend circles. They all regard them as secondary and dispensable.
But again, they couldn’t be more wrong. Although ability is important, ability cannot be isolated, complacent, or selfish. Some things can only be accomplished by a team, optimized only by cooperation, and added value only by sharing. These things are interpersonal relationships, partners, and circles of friends. They are human resources, human support, and human strength.
Therefore, good interpersonal relationships are an essential thing and something that must be valued. In the next five years, good interpersonal relationships will become more and more valuable and scarce. In this indifferent society, having a group of good interpersonal relationships is a blessing and wealth. These things may be easy for us to ignore at present, but if we grasp them well, they will become our advantages and allow us to stand out in today’s fiercely competitive society.
What do you think is the most valuable thing in this era? Only you can determine your worth. So work hard, believe in yourself, and win a bright future.
