You can indeed buy stocks in the bottom area in the medium and long term, but the bottom area is also divided into front, middle and back. Many stocks can take 5-10 years to bottom out. Your 3-5 years may be really insufficient, and there may be a big increase after you sell. Therefore, even in the bottom area, it is necessary to distinguish whether it is just the bottom area or almost out of the bottom area. The lowest price often occurs in the middle of the bottom area. Those with no technical skills who want to buy stocks in the long term can buy stocks that have been at the bottom for 2-3 years. In this way, the ownership cycle can be greatly shortened.
Cyclic industries have multiple cycles of growth and decline over two years, with increases often ranging from 1 to 5 times, and declines ranging from 50% to 80%. Once the strong cycle is over, the futures and spot markets will decline. Cyclical industries are prone to serious stocks being trapped. Many people pursue high growth, but high-growth stocks are accompanied by high valuations, and crashes are accompanied by plummets. However, the stock prices of stocks that have been weakly improved have not risen significantly. If the sales performance can be sustained, the stock price will usually rise very stably and will not be prone to collapse. The probability of doubling in the long term is still very high.
Profits and risks exist. The higher the expected return, the higher the risk. If you want to double it, it is possible to double it. This is also the basic concept. Generally speaking, no matter whether it is medium or long-term investment, it can only avoid the chore of watching the market every day, but it cannot determine the size of the risk, nor can it determine whether the profit will be doubled. From a theoretical point of view, the medium- and long-term risks are the same as the short-term risks of stocks. Distinguishing whether a stock will rise or fall is related to factors such as the general trend, fundamental market, corporate governance capabilities, intervention opportunities, and the quality of the company's controller. My profit and loss are related to the transaction connection point.
Stock selection (actually it’s a matter of which stocks to buy). There are two main methods of stock selection in medium and long-term trading, one is stock selection for stock investment, and the other is stock selection based on the trend of long-term main funds. When choosing stocks for stock investment, you must be proficient in using the value evaluation system to select stocks with investment value. Use the trend of long-term main funds to select stocks. You must detect the trend of long-term main funds (such as quarterly line and half-year line). The medium and long term requires main funds to buy. In this way, the selected stocks can avoid the risk of becoming ST or delisting.