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MindMap Gallery The Wisdom of Stock Investing
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The Wisdom of Stock Investing
Reading notes on "The Wisdom of Stock Investing" provide investment wisdom and practical strategies. Including: the importance of mentality, technical analysis basis, investment strategy and other contents. "The Wisdom of Stock Investing" is a classic stock investment book worth reading. It provides practical trading strategies and psychological training methods to help readers succeed in the stock market.
Edited at 2025-02-26 07:00:15
- Carte mentale des experts de trading en actions (version détaillée)
Ceci est une carte mentale sur la carte mentale des experts en bourse (version détaillée).
- Mind map of stock trading experts (detailed version)
This is a mind map about the mind map of stock trading experts (detailed version). The main contents include: 1. Mindset management, 2. Basic knowledge, 3. Technical analysis, 4. Fundamental analysis, 5. Trading strategy, 6. Risk control, 7. Continuous evolution.
- Mind Map of Stock Trading Experts (versione dettagliata)
Questa è una mappa mentale sulla mappa mentale degli esperti di trading azionari (versione dettagliata).
The Wisdom of Stock Investing
- Carte mentale des experts de trading en actions (version détaillée)
Ceci est une carte mentale sur la carte mentale des experts en bourse (version détaillée).
- Mind map of stock trading experts (detailed version)
This is a mind map about the mind map of stock trading experts (detailed version). The main contents include: 1. Mindset management, 2. Basic knowledge, 3. Technical analysis, 4. Fundamental analysis, 5. Trading strategy, 6. Risk control, 7. Continuous evolution.
- Mind Map of Stock Trading Experts (versione dettagliata)
Questa è una mappa mentale sulla mappa mentale degli esperti di trading azionari (versione dettagliata).
- Recommended to you
- Outline
"Stock Investing Wisdom"
Author's advice
Sound and feasible operations include
Enter a point
Stop loss
Selling points
Risk (risks that should be borne by each lot)
Operation suggestions
Only buy stocks above the 250 moving average, it is best to buy when the stock price crosses below the 250 moving average to above the 250 moving average.
Set a stop loss of 5~8% after investing
The stock price is above the 250 moving average, wait! Once the stock price hits the 250 moving average again, sell it!
example
Wanderer
Analysis after the rambler recently broke through the 250 moving average 1. On December 12, 2022, it broke through the 250 moving average for the first time, with a closing price of 8.93 On December 13, 2022, it fell below the 250 moving average for the first time, with a closing price of 8.72 Profit and loss ratio: -2.35% From the last breakthrough of the 250 curve on August 12, 2022, 122 days apart 2. On December 21, 2022, it broke through the 250 moving average for the second time, with a closing price of 9.19 On December 27, 2022, the second jump broke through the 250 moving average, closing at 8.76 Profit and loss ratio: -4.68% 3. On January 5, 2023, it broke through the 250 moving average for the third time, with a closing price of 9.09 On May 9, 2023, the highest price after breaking through the 250 moving average, closing price 23.39 Profit and loss ratio: 157.32% 4. On January 8, 2024, it fell below the 250 moving average for the third time, with a closing price of 15.41 Profit and loss ratio after breaking through the 250 moving average for the third time: 69.51% The third time breaks through the 250 moving average and rise cycle is 368 days
Summarize the reasons for the stock profit and loss in the past
The reasons for the loss are mostly trading below the 250 moving average
Changjiang Electric Power bought when it breaks through the 250 moving average and breaks through the 120 moving average.
Do not place more than 10% of the principal per hand
Three tips before entering the market
Don't be afraid, don't regret it
First understand the rules of the game. When facing human manipulation, you must understand the other party’s psychology.
The thief's ability is not stealing, but how to escape in crisis
It is a challenge to yourself and human nature to gain a long-term gain in the stock market
The unchanging shortcomings of human nature
Hate risks
It is human nature to be greedy for small gains and refuse to suffer small losses. It is experience not to be greedy for small gains and not to be afraid of small losses
Overcome the shortcomings of human nature
Greed is human nature, and “not greedy” is experience
When the downward trend is in progress, stop loss in time
The mentality of being a little cheaper and not having to suffer small losses can make small money when you win in the stock market and lose big money when you lose
Let profits run when the upward trend
Fatal features of the stock market: stocks have no ending moment, are afraid of making decisions, do not do anything, and may lose more
Hurry to make a fortune
With the mentality of making a lot of money, the bet will be huge. If you start to lose money, it is difficult to accept the reality of "losing a lot of money". As the losses increase, normal judgment slowly disappears. Until I finally couldn't bear too much loss, cut off my wrist and cut my flesh, and endured the great loss that would not happen under normal circumstances
Vanity and fantasy that may make a lot of money is extremely dangerous
Even if the possibility of making big money exists, it requires strong self-control and a lot of experience to achieve it.
Making money is a process from quantitative change to qualitative change. When insufficient quantitative change also changes lifestyle, you can't be anxious or not.
opinionated
The stock price represents the participant's recognition of the stock. When it is inconsistent with your own analysis, do not be stubborn and admit your mistakes in a timely manner.
Keep up the trend and the wind
Most people dare not take responsibility and always choose to follow the trend. Of course, the winners and losses are random.
Establish your own feelings about the market, and do not follow the trend, and be sure to establish your own rules.
Conservative
The characteristics of the stock market will not be completely repeated. Find rules to guide actions, and the winning rate is over 50%.
The everlasting market has no end, it is always moving
Revenge
Gambling mentality, losing a profit is extremely harmful. There is a reason for stocks to fall. The more you fall, the more you buy, and often get deeper and deeper.
Stock Analysis
Basic Analysis
The environment, external factors of the company (the environment is not very practical for stock trading)
interest rate
Interest rates rise, more funds flowing into banks, and less funds flowing into stock market. At the same time, the company's borrowing costs increased and profits decreased. Interest rate and stock price relationship are negatively correlated
tax
Tax expenditure is negatively correlated with profit and stock price
exchange rate
The exchange rate is raised and the appreciation of the domestic currency increases export difficulties and the turnover decreases
Firm roots
Loose monetary policy, the market's hot money has increased, which has a positive impact on stocks
Economic cycle
Economic cycle determines the degree of commodity shortage affects company profits
Commodity shortage, more companies invest in the production of such commodities. Once overproduction is overproduction, they have to cut prices or even sell at a loss. The profits are reduced and the stock price falls.
When commodities are short, prices are high and corporate profits increase, and stock prices rise.
The economic cycle is an inevitable result of the market economy. It is important to grasp the time point of the commodity shortage.
inflation
The government raises interest rates to control inflation, which has a negative impact on shares
Political environment
Political stability and stocks are positively affected
Government's industrial policy
The government encourages a certain industry to provide support, facilitate financing, and tax exemptions, which has a positive impact on stock prices.
Small environment, what the company does, how are it doing
Operating income
Rapid growth in operating income is often an opportunity for investment prices to double in the short term
profit
The company's business is mainly measured by profits. If profits increase, the stock price will naturally rise.
Fixed assets
Fixed assets are higher than the total market price, and it can be considered that the stock price does not reflect the company's value and the stock price is relatively low.
Similar to the company situation
Compare the performance of industry companies and see if the stock price rises and falls abnormally
Brand Value
Whether there is a strong brand has a profound impact on the stock price
When studying financial reports, you must pay attention to abnormal situations and details.
Three factors that lead to stock price increase
Profit growth
Price-to-earnings ratio
For companies that are developing rapidly, the price-to-earnings ratio is of little reference significance.
It depends not only on the rate of profit growth, but also on the amount of profit growth
Is profit growth synchronized with sales revenue growth
The sudden acceleration of profit growth is the reason for the stock price to rise
New Products
New products provide the possibility of rapid growth and profitability
New products are not limited to physical objects, they can be new business concepts, new sales methods, and new management methods.
The company repurchases its own stock
A company repurchases its own stocks as a trust in itself, and it usually only does it when the stock level does not reflect the company's value.
Total circulating volume of the company's stock
The larger the number, the harder it is to move forward.
Technical Analysis
By looking at the chart, analyzing the relationship between stock prices, trading volume and time, we can judge the possible direction of the next move of the stock
The psychological foundation of technical analysis is based on the assumptions of similar human nature. Changes in stock prices reflect the results of collective thoughts and actions, but it is not completely repetitive, and it can grasp the 50% winning rate.
The interactive relationship between stock price, trading volume and time in technical analysis actually reflects investors' views on the company's operations.
Important graphics for technical analysis
The reason for the rise in stock prices is that there are more buyers than sellers, and the reason for the decline is the same as vice versa. Technical analysis is to analyze the game and human nature of buyers and sellers through graphs to predict stock price trends. Price-to-earnings ratio and high dividends represent the past, and the factors that affect investors' decisions are expectations for the future
Technical analysis typical graphics
Common stock trend charts
Typical upward trend chart
The low points of the wave are connected, which is the upward line
The rising trend line is rising, the trading volume increases, the trading volume decreases
The normal upward line is the highest point of each fluctuation higher than the previous fluctuation, and the lowest point is also higher than the previous lowest point.
Typical decline chart
The high points of the wave are connected, which is the decline line
There is nothing special about trading volume
Each peak of the fall wave is lower than the previous peak, and the trough is lower than the previous trough.
No power chart
I don't know what the general direction of stocks is
There is no characteristic trading volume
Powerless stocks are usually not suitable for speculation
Support and resistance lines
Connect the highest point to become a resistance line, and connect the lowest point to become a support line
When the stock price rises to the resistance line, the price becomes higher, the buyers become fewer and the sellers increase, making it difficult to complete transactions, forming resistance. When the stock price falls to the support line, the price becomes lower, the number of buyers increases and the number of sellers decreases, and it is not easy to complete the transaction, forming support.
The resistance line becomes a support line when it is broken
The stock price breaks through the resistance line and will attract wait-and-see buyers to enter the market, and the buyers who make money will increase their positions due to excitement. More buyers are getting more, sellers want to sell at a higher price, and the stock price is further rising
The rise in stock prices makes some people who make money start selling, and at the same time, the buyers become less and the stock price begins to fall.
When the stock price falls back to the resistance line, people who want to gain a higher price but insist on not selling, are reluctant to sell because they have the memory of making money when breaking through the resistance line, and the seller becomes less People who have not bought the stock price before breaking through the resistance line, because the stock price returns to the previous resistance line, are afraid of missing out on the opportunity to make money again to start buying. The buyer becomes more, and the resistance line becomes the support line for the next trading cycle.
Support line breaks into resistance line
The stock price fell below the support line, and all buyers who bought at the bottom lost money. They were afraid that some people would stop losses and sellers would become more
Another part of people who insist on not selling to rebound will also sell stocks when the stock price rebounds to the original support line because they are unable to sleep or eat when they lose money.
Those who came out of the market with stop loss were originally entered by buying at the bottom, but were burned, and most of them did not dare to re-enter at this price. The number of buyers becomes the resistance line for the next trading cycle.
Buy time chart
Principles for setting buy and stop loss points
Resistance line buying point and stop loss point mark
Support line buying point and stop loss point mark
Better buying graphics
The stock price breaks through the resistance line, and large short-term funds are often absorbed at low points and sold at high points (short-term hot money funds will not stay on a certain stock for a long time unless the stock is believed to have potential), and the stock price falls. If the stock price can break through the previous high point B after the fall, then point B is a better buying point. Because it can be basically confirmed that the hot money has left the market, the market is really optimistic about this stock
The stock was favorable to the insider news when the big investors received the stock. The stock price fell below the support line, causing panic in the market, and the big investors began to absorb a large number of people. If the stock price falls below the support line, the trading volume increases sharply and the stock price quickly rebounds back to point A above the support line, this is an excellent buying opportunity.
The choice of buying time must be based on the increase in trading volume, and the trading volume is usually driven by large investors (funds).
Buy Principle
Basic Principle: Before entering the market, you must be clear when the stock's movement is not in line with expectations.
Set the stop loss percentage
Set the stop loss point slightly below the support line
When entering the market, choose the point with the greatest chance of winning, lose small money, make big money, stop loss in time, and let profits run
Don’t buy on the grounds that “the stock has fallen very low”, you don’t know how much it will fall! !
(Inverted) Two-Shoulder Picture and (Inverted) Head and Shoulder Picture
The stock price has no issue and crossed the highest point of the last time, and the market's view on price changes, and the stock price gradually declines.
The stock price did not fall below the last lowest point, the market trading balance was broken, and the stock price began to break through and rise
Average
Used to judge the stock trend, a normal upward trend, the stock price should be above the 200-day average
According to the long and short term, how many days the stocks below the average line will not be bought. The long term is 200 days
Looking at the pictures in a comprehensive way to find buying and selling points (cutting off losses and letting profits run)
Selling point
The point slightly below the trend line, resistance line and support line is the selling point. Once the support line is broken, it means the upward trend is over.
Buy point
Common stock sports charts and buying and selling points
Periodic movement of stocks
The period of energy storage: the strength of buyers and sellers is basically balanced
Economic recovery period: Eliminate poorly-selling products, reduce inventory, and prepare for economic recovery
Hill climbing period: Buying pressure is better than selling pressure, and there should be an increase in trading volume in the real hill climbing period
Economic recovery period: Products sell well, profits increase
Fatigue period: Buying pressure and selling pressure are basically the same
Intensify competition, saturation of the market, resulting in product surplus
Downhill period: selling pressure is stronger than buying pressure
Overstock, increased inventory, and reduced profit
Stocks are fluctuating at any time, and each large fluctuation contains many small fluctuations. Stock market manipulation can change short-term volatility, but it cannot change large volatility The average line will neutralize small fluctuations, indicating the big trend
Looking at the stock trend chart, we must pay special attention to trading changes. On this basis, technical analysis is meaningful.
Trading volume also reflects the changes in the psychology of buyers and sellers
Small companies have fewer stocks, and the market cycle is faster than that of large companies
Choose a selling point
in principle
Don't try to find the highest point of the stock, you never know how high the stock will rise
Remember stop loss, fall to set stop loss line, strictly enforce the rules and sell immediately
Typical graphs of selling critical points
Selling point selection after increasing experience
Practical summary
Beware of red flags
Practical experience to develop intuition
First guaranteed principal
The stock price is above the profit point, and a stop loss point must be set to ensure that no money is lost, while the profits are in the pocket.
Lost a small amount of money
Set the stop loss point at 10% or less, and do not exceed 20% in any case. The stock price has a higher stop loss ratio and the investment price has a lower stop loss ratio.
Do T operations every day, and you can set the stop loss point at the lowest stock price of the day
If there is huge profit, let's talk about it if you take it
The stock price surged and doubled in the short term, and sold immediately on the first day (closed below the opening).
Trading volume soared, but stock price did not rise
The stock price has reached its peak, and someone takes the opportunity to ship the goods
Use mobile stop loss points to sell stocks
The selling point is set in the trough of each wave, from A→B→C→D→E to move upward as the stock price rises
Elements of success
Three Right Things to Make Money in the Stock Market
Master the opportunity
Know when to enter the market, when to watch, when to make a profit, and when to stop loss
Money management
Know how to spread risks and when to take more risks. No matter what, try your best to protect your capital
Emotional control
Ordinary stock investors cannot sit still when making money, and stocks that lose money cannot leave. Will you be an exception? Will you hesitate when it’s time to cut your flesh?
Basic tips for successful stock trading
Failure but not defeat, save capital
Quick stop loss
Don't place too many bets at once, bet layer by layer
Pursuing excellence, making continuous profits, making big money
Profit is the goal, don't be proud because you lose less than others
In addition to knowledge and experience, you must learn to be patient and enter the market only when stock sports meet your entry conditions.
Overcome the urge to leave the market when you make a small profit. As long as the stock moves normally and you are sure that your chances of winning are very high, you should raise the bet appropriately, so that your profits can be made to make a lot of money.
Fund Management
Before entering the market, ask yourself, "Can I afford to lose?"
Don't risk beyond your own life
Improve experience and increase the probability of winning each time from 50% to 70%
Don't place a bet too big every time, it's just a small part of the principal. In the long run, you will definitely win.
The principal of the novice is 6 to 8 parts, and the number of parts is reduced if you have more experience
When you see stock movement red flags, don’t have any fantasies and take off immediately After taking off the stock movement, you can re-enter the market
It would be very good to be able to grasp 60~70% of the upward trend
Commonalities of successful investors
The desire to make money, the spirit of perseverance
Be willing to be a lonely person
It is not to do things that are opposite to the public in order to be different. There must be a reasonable explanation for why the public may be wrong, and at the same time foresee the consequences of the adoption of opposite thinking.
Must be patient and self-control
Patience means being able to withstand the monotonous and repetitive process of collecting information, judging market conditions, formulating stock trading plans, and learning and summarizing in practice and waiting for the time to come.
Find a stock trading model that suits you (a method that suits your personality, walks with ease and joy, is confident to go far, and is finally constantly improved), and strictly follow this model to damage your self-control
Advanced imagination and judgment of the future
No prejudice, foresee signs of change, act immediately, and never drag on the slumber
Never fantasize
When the stock movement trend is wrong, never fantasize about rationalizing this abnormal movement. You should stop loss immediately.
Have the perseverance to apply knowledge
There is very little knowledge required for stock trading, and applying the knowledge in place determines the probability of success. Knowing is easy and doing is difficult, abstaining from greed, anger, and ignorance
Steps to select stocks
See the direction of the market
The market is not good, so sit still. Great snobs, more chances of winning
Which categories of stocks are the most powerful?
The stocks with strong bull markets rise faster and more
To meet the previous two steps, select one or two "leading stocks" (just how many trapped stocks and how far they are)
Graphics with less trapping or long digestion time
Graphics of the far and near of the plate