They only focus on the intrinsic value of stocks and are not tempted by short-term price fluctuations. In the end, they reap profits several times or even dozens of times.
First of all, who are suitable for medium and long-term business?
That is those people who don't pay attention to the stock market, don't have time to read the market, or have a lazy personality, plus they have some spare money that they won't use for several years.
This kind of people are very suitable for medium and long-term investment in the stock market.
So in the final analysis, how can we do a good job in the medium and long term?
In fact, in the stock market, the medium and long term are the future of investment companies.
That is to say, if the future growth of the company is high, through annual growth, that is, continuous growth in performance, the value of the company will become higher and higher, and the stock price will naturally rise.
What we have to do is to discover these good companies, then buy them and wait for their appreciation.
How do we discover these good companies?
We can filter through the following points.
First, let’s look at the overall environment.
Our Chinese stock market is most affected by policies.
Therefore, we must pay attention to every national-level strategic meeting, and then according to which industries the country supports, we will immediately follow the country's pace and invest in these industries.
In the past history, every time the country announced which sectors it wanted to develop, these sectors would experience explosive growth in the next few years, such as real estate stocks, consumer stocks, military stocks, etc.
Now, new energy is on the forefront again. In just one or two years, most stocks related to new energy have increased several times, and some leading stocks have increased more than ten times.
Therefore, if you follow the national policies, you can enjoy everything you want.
The second is to choose a company, that is, stock picking.
We have to learn to look at several important indicators. I usually look at net assets per share, dynamic price-to-earnings ratio, price-to-book ratio, circulating capital, total capital, earnings per share, and return on net assets in financial statements.
The net assets per share is the actual value of each share of the company, the dynamic price-to-earnings ratio is the profitability of the company, the price-to-book ratio is the ratio of the current stock price to the net assets per share, the return on equity reflects the growth rate of the company, and the total equity is
The total number of shares issued by a company, the circulating capital is the number of shares that can be traded on the market, and the earnings per share is the earnings per share during the current reporting period.
Net assets per share multiplied by total equity is the current actual value of the company.
Through these indicators, we can filter out some of the better companies today.
The lower the dynamic P/E ratio, the better, generally below 50. The lower the P/B ratio, the better, usually below five times. The higher the ROE, the better. It is best to keep it above 10%.
As for the size of the enterprise, the optimal size is between 5 billion and 50 billion, because if the size is relatively small, the growth rate will be faster.
Of course, the higher the earnings per share, the better, but it is necessary to distinguish between non-operating profits and normal operating profits. Many companies, in order to improve their performance, will sell which investment shares in the current period, or sell off the shares of a subsidiary.
Land or compensation received from the government will be included in the current period's profits. Such profits are only one-time and cannot be counted, so you must keep your eyes open and distinguish carefully.
Third, after choosing a company, you have to choose where to buy it.
It is not necessary to be so precise when making medium and long-term buying points, but you must also be able to understand the trend of the K-line and clearly see whether the stock price trend in the previous months or even half a year is generally upward or downward. If it is downward, and there is no transaction
If the trading volume is large, don't rush to buy. You need to wait until the trend starts to level off. It is best to wait until the trading volume starts to gradually increase before buying. It doesn't matter even if the Chen Beng increases by more than ten points, because what we want is
It is deterministic and can save a lot of time and cost.
If the trend is generally upward, you can directly look for opportunities to buy. The premise is that the increase from the lowest point to the present should not exceed three times, because the greater the increase, the higher your capital is compared with others, and the risk will also increase.
If the stock price increases, don't worry even if the subsequent stocks rise to the sky. The stock market is so big, and there will never be only one good company.
Generally, the best overall increase is around 50%, and the longer it takes, the better, because there are sufficient transactions and sufficient washing, so the more chips the main force gets, the greater the probability of accelerating the rise in the later period.
The buying point can be set on the line connecting the trend lows.
The last thing is the selling point, which is more flexible.
You can set a profit point, sell when it reaches this point, or sell part of it, and then sell part of it when it reaches a certain point, and so on. But if it can't rise, it will fall back to the previous selling point.
, it is best to sell them all.
Of course, as a mid- to long-term business, if there is no profit of more than 50%, it is called unqualified.
Furthermore, look at the price-to-book ratio. If it reaches more than 15 times, or the company's performance begins to deteriorate, you can choose to sell it.
What if the stock price does not go up but falls after buying it? First, we need to check whether these indicators are still improving. If there is no problem with the company, then hold it firmly.
If you have the idea of ????adding to your position, you can add part of the position every time it drops by 10. Medium and long-term investment is a test of people's patience. As long as you do it, making money will no longer be difficult.
Of course, if you can't understand these, there is a better way, which is to copy the homework.