Basic stock knowledge

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Author: User
Tags stock prices
1.1 stock market terminology
Keline: it was invented in the Japanese market and is also known as the Japanese line. It originated in Japan. A k-line is a columnar line consisting of a shadow and an entity. The content above the object is called the upper line, and the lower part is called the lower line, as shown in Figure 1-1. The physical line is divided into two types, namely, red-yang line and black-yin line. A key line records the price change range of a stock for one day.

Figure 1-1 line chart

Keline Technology Analysis Method: keline is the most basic chart for various technical analysis. keline research focuses on the combination of keline for several days, for example, two, three, or more K-line combinations are used to speculate on the comparison between the strength of the two sides in the stock market, and determine whether the strength of the stock market is dominant, whether it is temporary or phased.

Upper line: In a K-line chart, the thin line extending from the entity to the upper line is called the upper line. In the positive line, it is the difference between the highest price and the closing price of the day; in the Yin line, it is the difference between the highest price and the opening price of the day. Therefore, the K-line form with a shadow line can be divided into the Yang line with a Shadow Line, the Yin line with a shadow line, and the cross star. Different Forms make different judgments on the power of multiple empty spaces.

Shadow: In a K-line chart, a thin line extending down from an object is called a Shadow Line. In the Yang line, it is the difference between the opening and lowest price of the day; in the Yin line, it is the difference between the closing price of the day and the lowest price. The Yang line and Yin line of the bald head: there is neither an online or offline Yin line, as shown in 1-2.

Figure 1-2 Yang and Yin of bare head

Bald line and bald line: There is no Yin line and Yin line on the Shadow Line, as shown in 1-3.

Figure 1-3 bald Yang and bald Yin

T-shaped K-line: There is no cross-line K-line on the shadow, as shown in figure 1-4.

Figure 1-4 T-shaped K-line

Inverted T-shaped K-line: no cross-line K-line for the shadow, as shown in 1-5.

Figure 1-5 inverted T-shaped K-line

Cross-type K-line: This type of K-line will appear when the closing price is the same as the opening price. It features no entity, as shown in figure 1-6.

Figure 1-6 cross K-line

Daily K-line chart: a K-line chart that sorts the daily K-lines in chronological order and reflects the daily price changes of the stock since its launch, as shown in 1-7.

Figure 1-7-day line chart

Moving Average (MA): it is based on Jones's "average cost concept" and uses the "Moving Average" principle in statistics, the average value of the stock price in a period of time is a technical analysis method that shows the historical fluctuations of the stock price and reflects the future development trend of the stock price index. It is a Visualized Expression of Dow's theory.

Moving Average refers to the arithmetic average of the closing price of the last n days. Moving refers to the price data of the last n days. Therefore, the average array (the closing price of the last n days) is moving forward with the change of the new trading day. When calculating the moving average value, the ending price of the last n days is usually used. Add the new market price to the array day by day, and the nth + 1st market price from the forward is removed. Then, divide the sum of the new prices by n, the average value of the new day (n-day average value) is obtained ).

Calculation formula:

MA = (C1 + C2 + C3 +... + Cn)/N

[Note] C: closing price of a day N: Moving Average Period

The moving average is divided into short-term (such as the 5th and 10th days), medium-term (such as the 30th day), and long-term (such as the 60th and 1000th days) Moving Average by calculation cycle, as shown in 1-8.

Figure 1-8 moving average

The moving average line consists of arithmetic moving average line, linear weighted moving average line, stepped moving average line, and smooth moving average line.

The significance of the moving average line: In the early stage of the rising market, the short-term moving average line broke through the Medium-and Long-Term moving average line from bottom to top, and the formation of the crossover is called the golden crossover.

(1) indicates that the stock price will rise: the crossover formed by the 10-day moving average on the 5-day moving average, and the 10-day moving average on the 30-day moving average. The triangle at the bottom is called the golden crossover, as shown in 1-9.

Figure 1-9 Golden Cross chart

(2) The short-term moving average line falls below the middle-term moving average line and is called the death crossover, indicating that the stock price will fall. The crossover formed by the 10-day moving average and the 10-day moving average plus the 30-day moving average are all dead intersections, as shown in 1-10.

Figure 1-10 death crosstab chart

(3) When the rising market enters a stable period, the moving average lines on the 5th, 10th, and 30th are arranged sequentially from the bottom to the top right, which is called multi-headed arrangement, as shown in 1-11.


(4) In the falling market, the average moving lines on the 5th, 10th, and 30th are arranged from top to bottom in order and moved to the bottom right, which is called the short position arrangement, indicating that the stock price will fall sharply, as shown in 1-12.

Figure 1-12 shorts

(5) In the rising market, the stock price is located above the moving average, and the moving average arranged by multiple heads can be regarded as a multi-party line of defense. When the stock price is blocked near the moving average, each moving average generates support power in turn. Buying a disk leads to the rise of the stock price again, which is the boosting effect of the moving average.

(6) In a falling market, the stock price is below the moving average, and the moving average in a short position can be regarded as the defense line of the air. When the stock price rebounded to the vicinity of the moving average, it will face resistance and sell out, prompting the stock price to fall further. This is the help of the moving average.

(7) the moving average line changes from rising to falling to the highest point, and from falling to rising to the lowest point, is the turning point of the moving average line, indicating that the stock price trend will be reversed.

Support Line: it is also called a line of resistance. When the share price falls near a certain price point, the share price will stop falling and may even rise back, because multiple parties are buying it here. The support line plays a role in preventing the stock price from continuing to fall. The price that prevents the stock price from falling is the position of the support line.

Lof: A local open-end fund. After the issuance, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges. Lof provides a trading platform based on which fund companies can switch closed-end funds to the public, and open-ended funds can be listed and traded. However, lof does not have the index futures feature.

MBO: the abbreviation of Management Buy-out, which is the acquisition by management. It mainly refers to an action by the company's management to acquire the company by taking advantage of the loan financing or equity transaction. Through the acquisition, the operator of the company becomes the owner of the company. As management acquisitions play a positive role in motivating internal staff, reducing agency costs, and improving the company's operating conditions, they have become ~ An enterprise acquisition method that became popular in Europe and America in 1980s. For Chinese enterprises, the biggest charm of MBO is that it can clarify corporate property rights, achieve the return of owners, and establish a long-term incentive mechanism for enterprises. This is also the most distinctive feature of MBO in China.

QFII: A Qualified Foreign Institutional Investor system is a system that allows approved qualified foreign institutional investors to remit a certain amount of foreign exchange funds under certain regulations and restrictions, it is also an open market model that converts to local currency, invests in the local securities market through a strictly regulated dedicated account, and converts its capital gains, dividends, and other approved funds into foreign currency remittances.

Collapse: Due to some negative reason in the securities market, a large number of securities are thrown out, leading to an unlimited decline in the price of the securities market. This phenomenon, also known as the emergence of a large number of selling orders, is a continuous phenomenon of a large number of securities.

Superbuy: the stock price continues to rise to a certain height, and the buyer's power is basically exhausted. The stock price is about to fall.

Oversold: the stock price continues to fall to a certain low, the seller's power is basically exhausted, and the stock price is about to rise.

Growth stocks: enterprise stocks with high profit growth in promising industries. The stock price of growth stocks is on the rise.

Transactions: the number of active purchases or sales transactions on the current day.

Transaction quantity: The number of stocks traded on the current day.

Food: it means that a banker secretly buys shares at a low price.

Shipment: When a banker sells a stock at a high price.

Large investors: large investors, such as groups or individuals with large funds.

Retail investors: small investors with a small number of shares.

Bounce: the stock price starts to beat sharply due to strong bullish or negative news. When the price increases, the opening or lowest price of the day is higher than the closing price of the previous day or higher than the highest price. When the price falls, the opening or highest price of the day is lower than the closing price or lowest price of the previous day, the name is skipped.

Fraud line: large investors use superstitious technologies to analyze the psychology of data and charts, and deliberately pull up and suppress stock indexes. As a result, the technical charts form a certain line type, which will induce large numbers of investors to buy or sell, to achieve their goal of making a fortune, the technical chart line caused by this deception is called a line of deception.

Right filling: After the permission is revoked, the stock price rises and the price difference after the permission is revoked.

Allotment: when the company issues new shares, the shares are allocated to the shareholders at an additional price based on the number of shareholder shares.

Dividend: the previous day's closing price of a stock minus the dividend paid by a listed company is the dividend.

Ownership: the ownership of a stock that has the right to deliver the goods but not to deliver the goods.

Warrants: The certificate issued to the original shareholders of the company to purchase a certain number of shares at a preferential price when the company issues new shares. The stock ownership certificate usually has a time limit and is invalid when it is out of date. Within the validity period, the holder may sell or transfer it.

Permission revocation: the price difference between the previous day's closing price and the ownership, that is, the permission revocation.

Non-listed stock: the stock that is not registered or listed on the stock exchange.

Letter of authorization: written proof of the right of voting entrusted by the shareholders to others or other shareholder representatives at the shareholders' meeting.

Turnover rate: the percentage of shares traded to the shares listed on the exchange.

Pull up: it is an unusual way to buy funds in a centralized manner. The stock price is greatly increased. Generally, large users throw out profits after pulling up.

Suppression: it is an unusual way to throw a stock in a centralized manner. The stock price is greatly lowered. Usually, large users buy a lot after the suppression to make profits.

Dark Horse: a stock that has risen by 50% or several times in a certain period of time.

White Horse: the stock price has formed a channel for rising slowly, and there is still room for increasing.

Disk washing: in order to achieve the hyping purpose, you must buy a low-price and unwilling sedan chair on the way to reduce the pressure on the upper gear and increase the average price of the stockholders, it facilitates the implementation of methods for raising, setting, and killing.

Low Price zone: In the early stage of the multi-headed market, this is the best purchase point for medium-and short-term investment.

High Price zone: the end of the Multi-headed market, which is the best selling point for medium-and short-term investment.

Below: the share price hits the level and falls below.

Decline: the stock price has been moving toward new and low prices for a period of time.

Limit: the minimum limit of the stock price on the day of a securities transaction (for example, the general stock is limited to 10%, and the ststock is limited to 5%) is called the limit, and the stock price at the time of the limit is called the price of the limit. Generally speaking, stocks that are closed when the market goes down may fall in inertia on the second day, and stocks that suddenly fall down at the end of the market may lie to the bank.

More blank: the buyer who is optimistic about the market changes his views to the seller.

Multiple kill and more: the practice of selling stocks immediately after buying a stock is called multiple kill and more.

Multi-headed: refers to the buyer in the stock transaction.

Multi-headed market: the market where stock prices are generally rising.

Over the air: The party who originally planned to sell the stock has changed its view and changed to the buyer.

Short: the seller in the stock transaction.

Dead bulls: they are optimistic about the future of the stock market. After buying a stock, if the stock price falls, they would rather put it on for a few years without making any money.

Short market: a market with a long decline in stock prices. In the bear market, the stock price changes are a small drop, also known as a bear market.

Short-term snatching: It is expected that the stock price will rise. Buy at a low price first and then sell at a high price in the short term. It is expected that the share price will fall, and the price will be sold at a high price before it can be purchased at a low price in the short term.

Share Capital: All shares that represent the ownership of the enterprise, including common shares and preferred shares.

Public shares: refers to the shares issued by a joint-stock company in the case of social raising. In addition to the shares subscribed by the initiators, other shares are publicly issued to the public and subscribed by individuals.

Legal Person Shares: a non-listed shares formed by an enterprise or a public institution or a social group that has the legal personality of a legal person and invests in the company's assets in accordance with the law.

Public shares: The public Shares that can be listed and circulated when the public invests in the company with their property in accordance with law.

State-owned Shares: shares invested by departments or institutions with state-owned assets on behalf of the State, including shares converted from existing State-owned assets of the company.

Rebound: in the stock market, the stock price shows a falling trend. The stock price eventually rebounded to a certain price point due to the falling speed. In general, the stock rebound is smaller than the decline, usually when it rebounded to about 1/3 of the previous decline, and then restored the original decline trend.

Reversal: the stock price moves in the opposite direction of the original trend, which is divided into upward reversal and downward reversal.

Back-to-Back: in the stock market, the stock price continues to rise, and eventually falls back to a certain price due to the high speed of the stock price. This adjustment is called back-to-back. In general, the stock return margin is smaller than the increase margin, usually it is to reverse the fall back to the previous increase of about 1/3 and then restore the original upward trend.

Cut meat: After buying stocks at a high price, the trend is declining. In order to avoid further losses, the stock is sold at a low price. Stop loss is a kind of meat cutover. It is a flexible method for short-term investors to use to set up a stop loss price in advance to prevent larger losses. New investors can use it to prevent deep freezing.

Level: Generally, the psychological price of the entire digit, the golden split, or the stock habits is called a level.

Track Line: Also known as channel line or pipe line, is a method based on the trend line. After the trend line is obtained, the parallel line of this trend line can be made through the first peak and valley. This parallel line is the track line. The role of the track is to limit the range of stock price changes so that it cannot be too outrageous. Once a track is confirmed, the price will change in this channel. Breaking through the above or below trend lines will mean a big change.

Exchange rate: refers to the frequency of stock trading in the market within a certain period of time, and is one of the indicators that reflect the stock circulation. The formula is as follows: Turnover Rate = (transaction volume/number of tradable shares in a certain period of time) × 100%. In general, when the share price is low and the turnover rate reaches about 4% on the day, it should attract investors' attention. When the turnover rate reaches 20% on the way up, it should be vigilant.

Price: The unit that changes the stock price. The price varies with the stock price per share.

Low opening: Today's opening price is below yesterday's closing price.

High Opening: Today's opening price is above yesterday's closing price.

Open: Today's opening price is the same as yesterday's closing price.

Blue chip stocks: the stocks of listed companies with strong capital, good company development, and excellent reputation.

Cold stock: Refers to stocks with small transaction volume, poor liquidity, and small price changes.

Bullish: it is a factor and news that boosts the rise of stock price and is beneficial to multiple users.

Negative: it is a positive factor and message for the share price to fall.

Negative results: in the securities market, the stock price fell due to the impact of various adverse news. This trend lasted for a period of time and fell to a certain extent, and the strength of the empty party began to weaken, investors are no longer affected by these negative factors, and the stock price starts to rebound and rise. This phenomenon is called a negative result.

Volume-price deviation: The current volume-price relationship has changed with the previous volume-price relationship. Generally, the volume-price deviation will generate a new trend, or it may only be an upward adjustment or a rebound in the decline.

Zero-stock transaction: less than one transaction unit (1 hand = 100 shares) of the stock, such as 1 shares, 10 shares, is called zero shares. When selling a stock, you can use zero shares for commission. However, when buying a stock, you cannot entrust it with zero shares. The minimum unit is 1, that is, 100 shares.

Buy shell listing: a dominant company acquires ownership, management right, and position of the acquired listed company through acquisition of creditor's rights, holdings, direct investment, and stock purchase. At present, in China, shell buying and shell borrowing are generally done through the secondary market or through the transfer of national and legal unit agreements.

Strong buying: a strong desire from buyers in stock market transactions leads to a rise in the stock price.

Cowhide City: refers to the rising trend of the market, the stock price is very small, the price does not change much, the market price is like stuck, such as the tenacity of cowhide. In the cowhide market, the transaction volume is also very small. The cowhide market is a price market performance when the sales and sales sides are balanced.

Bull Market: the overall stock market price is on the rise.

Bear Market: A general drop in the overall stock market price.

Consolidation: the stock price fluctuates within a limited range, which generally refers to the fluctuation of up or down 5%.

Cumulative net worth of funds: the sum of the latest net worth of funds and the dividend performance since the establishment of the fund, reflecting the cumulative income that the Fund has gained since its establishment (minus the nominal value of one dollar is the actual income ), it can intuitively and comprehensively reflect the historical performance of the Fund during its operation. Combined with the operation time of the Fund, it can more accurately reflect the real performance level of the Fund. Generally, the higher the accumulated net worth, the better the Fund's performance.

Technical analysis: Analysis and Research on the market and stock based on the relationship between supply and demand. Technical analysis studies price trends, transaction volumes, transaction trends and forms, and maps the above factors, use graphs to predict the potential impact of current market behavior on future securities supply and demand and individual securities.

Basic Analysis: enterprises are analyzed based on factors such as sales, assets, income, products or services, market and management. It also refers to the analysis of macro-political, economic, and military dynamics to predict their impact on the stock market.

Method for Analyzing tangent technology: Tangent class Draws straight lines in the chart drawn from stock price data based on certain methods and principles, then, based on these straight lines, we can infer the future trend of the stock price. These straight lines are called tangent lines. The tangent has two types: pressure line and support line. The analysis method of tangent is based on tangent.

Trend: the direction of the stock price market. There are three trends: the rising direction, the descending direction, and the horizontal direction. There are three types of trends: Primary trends, secondary trends, and transient trends.

Hot stocks: there are always some sectors or stocks that play a major role in boosting every time the market rebounded. These stocks have a large transaction volume, strong liquidity, and a large price change.

Daily turnover: the total amount of stocks that have been sold on the current day.

Opening Price: refers to the first transaction price per trading day, which is defined by the traditional opening price. Currently, the Chinese market adopts the collective bidding method to generate a start-up period.

Closing Price: the final price of each transaction day. Because the closing price is the standard for the current day. It is also the basis for the opening of the next trading day. It can be used to predict the future stock market. Therefore, when investors analyze the stock market, the closing price is generally used as the calculation basis.

Lowest Price: The lowest price among the stock deals on the current day.

Maximum price: the highest price among the stock prices on the current day.

People who believe that the stock price will change dramatically after the announcement of the report by Li duo or Li Kong, and are often forced to gain profits, or even be locked up by others.

Sedan Chair: investors who have sharp eyes or obtain information in advance buy or sell shares in advance before a large user secretly buys or sells the shares, or before the news of Lixiao or likong is published, when a large number of retail investors follow up or follow up, resulting in a substantial rise or fall in the stock price, then sell or buy back, enjoy the benefit, this is called the chair.

Bottomout: The lowest point of Stock Price. After successful bottomout, the stock price starts to rise from the lowest point.

Hold on: it refers to the expected rise in the stock price, but the stock price drops along the way after buying; or the expected share price falls, but the stock price rises along the way after the stock is sold; the former is called a long lock on the stock, the latter is short-lived.

Head: the highest portion of the stock price running on the long-term trend line.

Disk washing: to reduce the costs and resistance of the banker, the banker first takes down the stock price by a large margin, recycles the stock sold by retail investors in a panic manner, and then raises the stock price to take advantage of the price gap. In general, as long as the fluctuations in the stock price can be determined as the banker's drive, the funds should not be raised until the stock price rises.

Quote: the price of the stock or the trend of the stock price.

Index Technology Analysis Method: This method establishes a mathematical model based on various aspects of market behavior, provides a mathematical formula, and obtains a number that reflects a specific aspect of the securities market, this number is called the metric value. The status of the securities market is directly reflected based on the specific value of the indicator value and the relationship between them, providing guidance for our operation.

Technical Analysis Method for stock: This method is used to predict the future trend of stock prices based on the trajectory pattern that has elapsed over the past period of time in the price chart. The main forms include M head, W bottom, head shoulder top, head shoulder bottom and so on.

Pressure line: Also known as the resistance line. When the stock price rises near a certain price point, the stock price will stop rising or even fall back, because the empty party throws this. The pressure line can prevent the stock price from rising. The price that prevents the stock price from rising is the position of the pressure line.

Blank: the stock holders on the stock market agreed that the stock will fall sharply on the day, so most people are eager to sell the stock. However, the stock price did not fall sharply that day, and they cannot buy the stock at a low price. Before the conclusion of the stock market, we had to compete to make up the stock market, which led to a sharp increase in the closing price.

Rise/fall: the percentage of the current day's stock price compared with the previous day's closing price (or the previous day's closing index). The positive value is up, and the negative value is down, otherwise it is equal.

Upward trend: the stock price has been moving toward new high prices for a period of time.

Daily limit: the maximum limit of the stock price on the day of the stock exchange in the securities market (for example, the limit of ordinary stocks is 10%, and the limit of stshares is 5%) is called the daily limit. In general, the stock is closed when the market is opened, and the momentum is fierce. As long as the daily limit is not opened, there is still the upward momentum on the second day, and the ending disk suddenly reaches the limit, the banker is suspected of goods or fraud on the second day. Be careful.

Sorting: Also known as consolidation, the stock price on the stock market experienced a sharp rise or fall, and encountered a resistance line or support line, the original upward or downward trend slowed down significantly, this phenomenon is called organization. The appearance of the sort-out phenomenon usually indicates that the price has exceeded due to fierce competition between the bulls and the bears, which is also a prelude to the next big change in the stock price.

Common Stock: it is the most important and basic share of a joint stock limited company, and is the basis for forming the shareholders of a joint stock company. The income of common stock cannot be agreed upon purchase. It can only be determined based on the operating performance of the stock issuing company. Currently, A and B shares listed in Shenzhen and Shanghai are common shares. Common stock has the following characteristics:

(1) operation right. Ordinary shareholders can participate in the company's operation and management and have the right to vote.

(2) income distribution right. Ordinary shareholders have the right to participate in the profit distribution of the company based on their shares. Their income is directly related to the company's operating conditions, and there is uncertainty. In addition, the profit distribution sequence of ordinary shares is then optimized.

(3) stock priority. If a joint-stock company issues an additional general stock, the original common stock shareholder has the right to subscribe to the newly issued stock first to ensure that its shareholding ratio to the joint-stock company remains unchanged.

(4) remaining asset allocation right. When a joint-stock company goes bankrupt, the remaining assets can be distributed according to the shares held by common shareholders after the company pays off its debts and assigns it to the shareholders of preferred shares.

Preferred stock: refers to the stock given to the subscriber with certain priority when raising capital. Preferred shares have the following features:

(1) Agreed dividend rate. The return of a preferred shareholder is prior to that of a common shareholder, and a fixed interest rate is determined in advance. The return is irrelevant to the company's operating conditions.

(2) pay off the remaining assets first. When a joint-stock company goes bankrupt, its distribution takes precedence over ordinary shareholders.

(3) voting rights are restricted. Shareholders of preferred shares do not have the right to participate in operation or to vote.

(4) generally, it cannot be listed or traded. That is, the circulation of preferred shares is limited. At the early stage of China's shareholding system reform, we issued preferred shares, such as vacuum electronics in the Shanghai market. With the deepening and standardization of the shareholding system reform, the number of preferred shares in China is already relatively small, and most of them are historical issues.

A shares: ordinary RMB. It is a common stock issued by a company in China for domestic institutions, organizations or individuals (excluding Taiwan, Hong Kong and Macao investors) to subscribe and trade in RMB.

B Shares: special RMB stock. Shares traded on Shanghai and Shenzhen stock exchanges are subscribed and traded in foreign currency at the nominal value of RMB. At present, there are more than 100 shares in China.

H Shares: foreign capital shares registered in the Mainland and listed in Hong Kong. Hong Kong is HongKong in English, and the first word is H shares. In this case, N shares are listed in New York and S shares are listed in Singapore.

1.2 features of stocks

A stock has the following features:

(1) life cycle. A stock is a type of marketable securities. Once an investor subscribes for a stock, he or she cannot request a withdrawal from the stock company and can only transfer the stock in the stock market. In addition, as long as a joint-stock company still exists, its issued shares exist and are valid, and the joint-stock company has no obligation to repay investors' investment.

(2) rights and responsibilities. Based on the shares held by the shareholders, the shareholders have the right to the number of shares corresponding to the number of shares, but also bear the corresponding responsibilities. Rights are mainly manifested in participation in the shareholders' meeting, voting, participation in the company's business decisions, receiving dividends or dividends, and obtaining investment income. The primary responsibility is to assume the company's operational risks and take responsibility for the company's business decisions. The limit of the responsibility is the total investment of the subscribed shares.

(3) liquidity.

Stock Circulation refers to the stock transfer between different investors. The stock holder can withdraw his or her investment amount at any time through stock transfer, improving the stock monetization ability.

(4) risks. The risks and benefits of any investment coexist. The risks of stocks mainly come from fluctuations in stock prices. Stock prices must be affected by factors such as the company's operating conditions, macroeconomic policies, market supply and demand, and public psychology. Therefore, stock investment is a high-risk investment activity.

Investors who have never experienced a bear market are not mature investors. To be a shareholder, the entry threshold is low. A natural person handles shareholder accounts and fund accounts, and then enters the stock market to start operation, that is, to become a shareholder. However, to become a mature investor must go through three stages:

(1) Preliminary process. At this stage, investors are blind, unaware of stock knowledge or little knowledge. They do not know the meaning of professional terms such as "permission assignment and earnings per share". They do not fill in orders or swipe cards; I do not know what stock to buy. But it is clear that buying stocks must make money. The first child is not afraid of tigers. Because he is blind and bold, especially because he thinks that buying stocks can make a fortune, he dares to buy any stock. This is especially manifested in the early start of his family, his hands itch, and he immediately buys several shares. It seems that I am not sure if I don't buy it. In a bull market, it is often a battle to earn money, but in a bear market, it is usually a battle. Early market participants tend to earn a fortune, which makes them more confident that stocks can make money. That is to say, the stock market is easy to make money, and it is easy to make money, and everyone on the board can tell the stock market that there is no risk. To enter the market, be bold and do not need so much knowledge. I will make money as soon as I enter the market, and often encourage people around to join the stock market.

(2) intermediate process. The overall features at this stage are either stuck or deeply framed. As a result of the winning streak, I don't know how to reverse the market. As a result, the whole line is covered, and the meat is not cut, and it will only wait or die. For the first time, it will taste the taste of losing money and risks. Also, the skills are poor. Although I am familiar with some trading and trading processes, I also know some stock knowledge. However, I am not proficient in anti-risk techniques, and I am not able to cut the meat and stop the losses as soon as possible, however, the closer the result is, the more stupid it is. My mood is getting heavy, and I regret it. The fruits of the victory and old people are covered. I can't think of it, I regret it, and I don't want to talk about stocks with people around me. When asked by others, they often say "okay" with support ". This gives rise to reluctance: when there is money, the stock market will be saved in order to increase investment and try to get it back quickly. In particular, I love to inquire about news and listen to stock reviews, so as to obtain spiritual comfort or learn some technical strategies from them. I am very disgusted with the stock reviews that do not meet my wishes. I am afraid that this will cause market volatility and increase the loss. I just hope that the stock can be lifted as soon as possible.

(3) maturity stage. After small profits, deep covers, and uncovers, investors began to mature. When selecting a stock, we will refer to many factors and have deep application capabilities for technical analysis. We already have mature experience and solutions in judging the overall trend of disks and the trend of individual stocks. As a result, the stock market that has never experienced a bear market is not a mature stock market.

1.3 What is the difference between stocks and bonds?

Although stocks and bonds are both marketable securities, they can both be used as financing methods and investment tools, but they are quite different.

(1) Different issuing subjects: as a financing means, bonds can be issued by national and local public organizations or enterprises, while stocks can only be issued by joint-stock enterprises.

(2) income stability: From the Perspective of income, the interest rate of a bond is fixed before it is purchased, and fixed interest can be obtained upon expiration, regardless of whether the company that issues the bond is profitable or not; the stock interest rate is not fixed until it is purchased. The dividend income changes with the profit of the stock company. If the profit is more than one, the dividend income will be less than the profit, and the profit will not be profitable.

(3) different capital preservation capabilities: From the Perspective of the principal, the principal of a bond can be recovered upon expiration, that is, the interest of a bond can be obtained, just like a debt, and the stock has no expiration. Once the stock principal is handed over to the company, it cannot be recovered. As long as the company exists, it will always be at the company's disposal. Once the company goes bankrupt, it depends on the liquidation of the company's remaining assets. At that time, even the company's principal will be eroded.

(4) different economic interests: the above profits indicate that bonds and stocks are essentially two different types of securities, which reflect different economic interests. Bonds represent only one kind of creditor's rights to the company, while stocks represent ownership of the company. Different ownership relationships determine that the bond holder has no right to ask about the company's operation and management, while the stock holder has the right to directly or indirectly participate in the company's operation and management.

(5) different risks: bonds are only common investment objects, and their transaction turnover rate is lower than that of stocks. stocks are not only common investment objects, but also major investment objects in the financial market, its transaction transfer turnover rate is high, the market price changes are large, can soar and collapse, low security, high risk, but can get a high expected income, therefore, it can attract many people into stock trading.

In addition, when the company pays the income tax, the interest of the company's bonds has been deducted from the income as the expense, which is at the top of the income tax. The dividend of the company's shares is the distribution of net income, not the expense, post-income tax. This has a great impact on the company's financing decision-making. It is often used as the decisive factor in the selection when deciding to issue stocks or bonds.

1.4 how to invest in stocks

Stocks are the same as any business. What industries, products, time, and steps should be taken in advance. Specific to the stock, including the following aspects:

(1) select the most favorable time for intervention. The market is cyclical. When the market increases, it will fall. When the market falls more, it will rise. This is the case for all securities markets. When the market falls, 95% of the stock will fall, and it is better not to create a warehouse. When the dashboard is stable and re-running, it is best to build a warehouse. Whether the daily average system is in the multi-headed status or is forming a multi-headed status. If you build a warehouse above the 30-day average or effectively break through the 30-day average, the chances of success.

(2) stock selection: Create a stock pool suitable for your investment style. You cannot track all the stocks. You should carefully read the annual, medium, quarterly, and other public information of each company, and select stocks with good expectations from them, stick to tracking them, and take action at the right time. If you only pay attention to 3 ~ 4 stocks, your workload will be relatively small, more concentrated, and the chances of successful operations will be greatly increased. Whether the earnings per share increase significantly in the quarter and the growth of listed companies are the main driving force behind the rise of stock prices. The Fund has strong research capabilities and the ability to capture market opportunities. Whether they are willing to buy a stock can also serve as a reference for stock selection.

(3) make a detailed operation plan. This way, you can record your thoughts when buying stocks, help you control your emotions, and let you have a thought process, so that you can learn lessons easily.

(4) how to obtain stable profits in the stock market. People usually think that the stock market experts will win every battle, and they are mysterious and cannot be reached. In fact, they are not. The probability of successful Masters is mostly around 50%, and some are less than 50%. How can we make a profit? They have limited losses each time, generally at most 7% ~ About 8%, and each time they make a profit of 20%, 30%, or even several times. In this way, in general, their benefits are considerable. If you can also do this, stop the losses when you are wrong, hold on to the stocks when you are right, and close the positions when the profits are high, you can also make a considerable profit. Buy only stocks with good expectations on the fundamentals, buy stocks with technical support at the right time, set up a stop position and a profit position, make a detailed plan, and sum up experience and lessons, stick to it and you will establish a good profit model. In this way, you will be able to achieve stable profits in the stock market.

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