The rise and fall of stock prices change with the fluctuation of the market. The fluctuation of stock price often shows the characteristics of differentiation, which stems from the concern of funds, and the relationship between them is like the relationship between water and ships. When the water overflows, the ship is high (the stock price rises when the capital flows in), and when the water runs out, the ship is shallow (the stock price falls when the capital flows out).

Stock is a kind of securities. Securities include bonds, stocks, financial derivatives and other securities, the essence of which is investment mode. Like the investment industry, we must calculate the rate of return and evaluate the risk.

But stock trading is not financial management!

In China, stock trading may be regarded as gambling, entertainment, venture capital and even a way of learning (how many people learn to read financial statements because of stock trading), but it should not be regarded as financial management! In fact, most people in China are beginners in financial management. Most people will deposit money in the bank to get current or regular interest. They know how to buy Alipay and Lucky Treasure Bank, and aunts also know how to queue up to buy government bonds. This is all about financial management, not stock trading!

In the bank deposit, apart from inflation, your real estate is not very risky in absolute value, but stock trading is not! Except for people who have heard of getting rich through stock trading, everyone I know, except before the bull market crash in 2007 and the first half of 15, 90% of the time, more than 90% are losing money. Look at the fund manager who specializes in this bowl of rice. In the bear market (and most of them), the top ten are even negative (equity funds), thanks to the sand.

Financial management is to manage property (finance). How to manage?

This definition is a bit broad, but we all know the saying: if you don't manage your money, money will ignore you. In fact, the truth is management.

First of all, there are two prerequisites for management. One is to have a clear understanding of your assets and liabilities, and the other is to be clear about your risk tolerance.

Secondly, through multi-dimensional planning and management of their own assets and liabilities such as income, savings, expenditure, risk and investment, the goal of maintaining and increasing the value of assets can be achieved.

Financial management is the wealth of a lifetime. Financial management is a comprehensive systematic project, and stocks are only a small branch of the investment field. One-sided stock trading is equivalent to financial management, which is not good after all.