Long-term operation refers to the operation of holding shares for more than one year, in which holding shares is not a passive holding after being locked up, but an active holding that allows profits to run freely after making profits. Long-term operation must correspond to the long-term bottom, so how to judge whether the current market is in the long-term bottom range? I usually only use the two most common indicators to judge, that is, the average market price-earnings ratio and the price-to-book ratio. For the A-share market, when the average P/E ratio is about 10 times and the P/B ratio is less than10.5 times, it can basically be judged as a long-term bottom. Of course, these two values will gradually decrease with the slowdown of enterprise development and the continuous maturity of the market. For example, the average P/E ratio and P/B ratio at the bottom of the long-term market are about 6 times and 0.8 times respectively.

The long-term operation is to select stocks after determining the long-term bottom. Women are afraid of marrying the wrong man, men are afraid of choosing the wrong line, and the same is true of choosing stocks. In a bull market, the returns of choosing different stocks may be several times different, so how to choose the right stocks to hold for a long time is very important. Faced with thousands of different stocks in the current market, it is not easy to choose stocks with relatively more rising potential. Usually, the method I adopt is to narrow the overall selection range by choosing industries, and then choose individual stocks. For the choice of industry, I generally consider the following aspects. First of all, the profiteering industries with extremely high industry prosperity, such as non-ferrous metals industry and real estate industry in 2005-2007. These two industries are profiteering industries, and product prices are rising, which is in short supply. Followed by high-tech industries or sunrise industries, such as pharmaceutical industry, information industry, new energy industry and so on. But unfortunately, in the A-share market, companies classified in these industries are usually selling dogs, among which there are few or no companies with high technology content and excellent texture. Finally, we can consider industries that are related to the national economy and people's livelihood and strongly supported by policies, such as agriculture and education. After choosing a good industry, choose a stock. There are many ways to choose individual stocks, which can be said that different people have different opinions. I generally use the method of value investment, that is, after further narrowing the scope of choice through indicators such as price-earnings ratio, price-to-book ratio and return on net assets, I analyze the financial statements and select the stocks with the most growth potential. Usually, I will set the P/E ratio and P/B ratio below 10, the P/B ratio below 1.3, and the ROE should be at least above 10%. Of course, different industries have different requirements for these three indicators. For high-tech or sunrise industries, the requirements of P/E ratio and P/B ratio need not be too harsh, and more attention can be paid to the return on net assets.