What is the theory of long-term friends in the stock market? In fact, after that, in the stock market, the stocks with relatively good gains for a long time only became friends, while the stocks with poor returns were empty friends. So as long as you are a long-term friend and don't short your friends, you will become a winner. Although there will be repeated market prices in the middle, in the long run, friends should be oppressive and strong, and most short-selling friends will end in fiasco.
The long-term friend theory was first applied to the futures market. It means that the price of a commodity is very sad, so we should be optimistic about this futures commodity and hold positions for a long time. In the long-term investment process, the winning rate is certainly more than that of empty friends. Let's look at a chart of the Shanghai Composite Index.
As can be seen from the above trend, the stock price has started from 100 since listing. Although it has undergone many adjustments in the past ten years, the index easily rose to 6 124.04 in June 2007. Of course, 6 124 will not be the highest point of China stock market. With the passage of time, it is not out of reach to reach 1000 or even 20000 in the future.
If investors think that the long-term friend theory has deteriorated reasonably, they can choose the corresponding index fund or futures to invest, and of course they can also choose a stock with the nature of multi-friends, such as Kweichow Moutai. If you had bought this stock ten years ago, its share price would have doubled several times.
If you are a long-term investor, you can get very good returns by applying this theory to investment operations.