Pareto Law (also known as 28 Law) was discovered by Italian economist Pareto at the end of 19 and the beginning of 20th century. He believes that in any group of things, the most important thing only accounts for a small part, about 20%, and the remaining 80% is secondary, although it is the majority, so it is also called the 28 th Law. The most popular saying is: "80% revenue comes from 20% customers." Also known as the 20/80 rule. The "February 28th" phenomenon in China stock market is actually that 20% of the stocks go up and 80% of the stocks go down or not. In the adjusted market, only 20% of the time is up, while 80% of the time is down. However, many of our investors have been busy, frequent in and out, not only physically and mentally exhausted all year round, but also lost a lot of money, which is really thankless. Real masters spend a lot of time in this market, wait patiently, and when opportunities arise, they will act like rabbits, hit the nail on the head and never drag their feet. After several rounds, we have gained a lot. This is not only relaxing, but also enjoying the fun of making money in the stock market. In the past thirteen years, the Shanghai and Shenzhen stock markets have had opportunities to make money every year (even when the 1993 market index fell by 80%, there was Big bounce), but the opportunities were different. Why are 80% people still losing money? I just didn't grasp the time of entry and exit. After making money, you don't lock in profits, and you still shoot frequently when the market peaks. As a result, they are either trapped in the decline of the market, or their losses are aggravated in the process of constantly cutting meat. When he completely broke his mind, became less courageous, and dared not rush to shoot again, great love came, but he stepped on the air. This vicious circle is a common feature of many losers. [Edit this paragraph] 28 Law and its application rules in the stock market: 80% investors in the stock market only consider how to make money, and only 20% investors consider contingency strategies when losing money. But the result is that only those 20% investors can make long-term profits, while 80% investors often lose money. 20% of the people who make money have 80% correct and valuable market information, and 80% of the people who lose money have no intention to collect information for various reasons, but only master 20% of the information through stock reviews or TV. When 80% people are optimistic about the market outlook, the stock market is close to the short-term head, and when 80% people are bearish on the market outlook, the stock market is close to the short-term bottom. Only 20% people can shovel the bottom to escape from the top, and 80% people buy and sell when the stock price reaches halfway up the mountain. 80% of brokerage commission comes from 20% of short-term customer transactions, while 80% of shareholders' income comes from 20% of transactions. Therefore, unless you have skilled short-term investment skills, don't rashly participate in short-term trading. Large-cap index stocks, which only account for 20% of the market, play an 80% role in the rise and fall of the index. When judging the market trend, we should pay close attention to the performance of these index stocks. Only 20% stocks in a market can become dark horses, and 80% stocks will fluctuate with the market. 80% investors will miss the dark horse, but only 20% investors have the opportunity to be with the dark horse, and even fewer investors can really ride the dark horse. 80% of the investment profit comes from 20% of the investment stocks, and the remaining 20% comes from 80% of the investment stocks. 80% of investment income comes from 20% of transactions, and the remaining 80% of transactions can only bring 20% of profits. Therefore, investors need to pay 80% of the funds and energy, focusing on the most critical 20% investment in stocks and 20% trading. In the stock market, 20% institutions and large households account for 80% of the mainstream funds, and 80% retail investors account for 20% of the funds. Therefore, only by grasping the trend of mainstream funds can investors stabilize their profits. Successful investors spend 80% of their time studying and researching, and 20% of their time practicing. Failed investors spend 80% of their time making firm offers and 20% of their time regretting them. The stock price is in a state of quantitative change 80% of the time, and only 20% of the time is in a state of qualitative change. Successful investors spend 20% of their time participating in the process of stock price qualitative change, and 80% of their time resting. Unsuccessful investors spend 80% of their time participating in the process of stock price quantitative change and 20% of their time resting. [Edit this paragraph] Take a comprehensive view of the February 28th phenomenon in the stock market. As of1October 25th 10, the Shanghai Composite Index closed at 5,562 points, up 107.9% since 2007. What's more, the Shenzhen Stock Exchange Index rose from 6647 points in 2006 to 65438+ 18 175 points on October 25th, an increase of 173%. This almost exceeded the expectations of all investors. However, what is even more unexpected is that while the index has made great strides, many stocks have returned to the prices in April this year or even at the beginning of this year. In June and February this year, the average price of the Shanghai Composite Index was around 2,800 points, and it did not exceed 3,500 points before mid-April. In other words, many stocks not only failed to rise synchronously, but also returned to the starting point from the end. This is the truth of the well-known "February 28th phenomenon". The quantitative boundary outlined by the "February 28th phenomenon" is not strict and clear, and the specific reference objects are not fixed. Some people also use "919 phenomenon" to express the same meaning. In order to avoid semantic confusion, the author treats the two equally, and its core refers to the phenomenon that a few stocks rise and most stocks are marginalized. Of course, these minority stocks have some common characteristics, such as being leading enterprises in financial real estate, energy resources, petrochemical industry, machinery manufacturing and other industries, and they have great motivation, good performance and internal imagination with macroeconomic development. Taking this as a standard, all the remaining stocks are invested in alternatives. The sharp rise of a few stocks is not without reason. One is performance. According to statistics, in mid-2007, *** 15 18 companies in Shanghai and Shenzhen realized the main business income of 36,8851800 million yuan and the net profit of 371645,438+0 billion yuan. Among them, the former 15 1 and the latter 1367 companies realized the main business income of 2,753.026 billion yuan and 935.492 billion yuan respectively, accounting for 74.64% and 25.36% of the total; The net profit was 300.9 15 billion yuan and 70.726 billion yuan respectively, accounting for 80.97% and/kloc-0.9.03% of the total. Assuming that the profitability of listed companies in the second half of the year is the same as that in the first half, the average price-earnings ratio of the current market is 5 1.92 times. Among them, the current price-earnings ratios of 15 1 and 1367 are 42.05 times and 65.73 times respectively. From this perspective, the valuation of these minority stocks is not excessive, and there is even room for growth. Second, the rapid development of macro-economy, the sustained growth of domestic investment, and the obvious improvement of profitability of major industries have promoted the accelerated growth of profitability of listed companies, especially the dominant monopoly companies. In 2007, the profit growth of China Merchants Bank (23.86, 0. 18, 0.76%) and Shenzhen Development Bank may be more than 1 times. The bull market in A-share market resulted in CITIC Securities (24.03, -0.29,-1. 19%), Haitong Securities (24.33, -0. 13, -0.53%) and Hongyuan Securities (17). China Life Insurance (26.34, -0.58, -2. 15%) and China Ping An (43.00, 0.08, 0. 19%) also achieved substantial growth. This has added imaginative wings to the soaring prices of a few stocks. Third, H-share returns continue to grow, and the blue-chip team often stirs the nerves of the market. Every return will further strengthen the advantages of blue-chip stocks and strengthen the blue-chip thinking of investors. With the help of institutional investors such as funds, the interpretation of blue-chip stocks is real and concrete. Especially due to the expectation of stock index futures, the pursuit of weighted blue-chip stocks has contributed to the differentiation of the trend. As far as the Shanghai Composite Index is concerned, the top four heavyweights are Industrial and Commercial Bank of China (5.0 1, -0.04, -0.79%), Bank of China (4.09, 0.0 1, 0.25%), China Life Insurance and China Shenhua. In order to protect their right to speak, new and old funds, large funds and small funds should allocate these heavyweights, and the newly issued blue-chip stocks will undoubtedly become the object of chasing and carving up. With these "killers", heavyweights and blue-chip stocks not only soared in share prices, but also won the good reputation of "value investment", which can be described as fame and fortune. This is the inevitable result under the current situation. Correspondingly, if you are labeled as an alternative, you can only be unlucky. The rise of heavyweights and blue-chip stocks has its reasonable side, which is the result of China's economic development. According to the latest market value ranking of global listed companies, among the top 20 companies, China occupies 7 seats, among which China Petroleum ranks second, surpassing General Electric. China companies are large state-owned monopolies in the fields of energy, finance and telecommunications. This has never happened before, and it is what we dream of. But this is different from the specific market trend of heavyweights and blue chips, although there is a relationship between them. For example, blue-chip stocks emphasize stability, return and value investment. According to the latest ranking, the price-earnings ratio of ExxonMobil, which ranks first in the list, is only 13 times, while the price-earnings ratio of a Russian listed company is less than 1 1 times, while the price-earnings ratio of China Petroleum is 23 times, China Mobile is 43 times and China Life Insurance is 66 times. According to the concept of value investment, the valuation of domestic heavyweights and blue chips is definitely high. As for robustness, growth, sustainability and even return, at least so far, it is still in the stage of being tested and there is no routine. So in the final analysis, the hype of heavyweights and blue chips is still inseparable from "storytelling." [Edit this paragraph] 28 phenomena and your life 20% of people are successful-80% are unsuccessful-20% make money from above the neck-80% make money from below the neck-20% think positively. Employees-80% find good jobs, 20% dominate others-80% are dominated by others, and 20% do business-80. It's what 20% people with strength want to do to get rich-80% people want to do what I want to get rich, 20% people love investing-80% people love shopping, and 20% people have goals. -80% people only care about the present, and 20% people seize the opportunity. -80% people miss opportunities, and 20% people plan the future. -80% people wake up in the morning and think about what to do today. People don't want to do simple things. 20% people will do things tomorrow-80% people will do things today. 20% will think about how to do it-80% will think about whether it is possible to do it-20% will take notes.