A beginner's guide to stock investment

Stock investment refers to the act of buying stocks in order to get income. Investors must consider the following three elements when investing in stocks: income, risk and time. Then some little knowledge about stock investment, Xiaobian compiled the introductory guide to stock investment here for your reference. I hope everyone will gain something in the reading process!

(1) income

income is the reward from investing in stocks. The income from investing in stocks includes two parts. First, investors buy stocks and become shareholders of the company. As shareholders, they can get corresponding dividends (including cash dividends and stock dividends) from the company according to the number of shares they hold. The second is the capital appreciation formed by the rising price of the stocks held, that is, the difference profit earned by investors by using the low price of capital to enter and the high price to exit. The percentage ratio of the above investment income to the initial investment amount is the rate of return on stock investment, which is an index used to express the status of stock investment income.

the measure of the return on a stock investment is explained by the rate of return. Because the returns of stocks and other securities are not exactly the same, the calculation of their returns is also quite different. There are usually two types of stock returns: stock returns and holding period returns.

To reflect the level of stock returns, there are mainly technical indicators such as dividend yield in the current period and holding period. Through the calculation of these returns, we can fully grasp the specific situation of stock investment returns.

current dividend yield, which is the ratio of cash dividends paid by joint-stock companies to current stocks, is expressed by the following formula:

current dividend yield = annual cash dividend/current stock price ×1%

In the formula, current stock price refers to the closing price in the stock market, and annual cash dividend refers to the dividend obtained by each stock in the previous year. The dividend yield of this period indicates the expected income from buying stocks at the current price.

The holding period yield means that the fat stock has not yet matured, but investors have held the stock for a long time. The stock holding period can be one week, one month, one year or longer. It is expressed by the formula:

holding period yield = (selling price-buying price+cash dividend)/buying price ×1%

(2) risk

Investors always hope to get investment returns in the future when they buy stocks. However, because the stock price fluctuates constantly, it cannot be predicted accurately in advance, and it is uncertain whether the joint-stock company can make profits and distribute dividends. Therefore, investors will face two situations: one is that they may make profits, and the other is that they may lose money. This creates investment risks.

Generally speaking, investors' risks can be roughly divided into the following categories:

Interest rate risk.

the investment risk borne by investors due to the change of market interest rate. It is divided into two situations: first, the risk caused by the change of market interest rate, which affects the reduction of the yield of investment stocks; Second, the risk of loss caused by the fact that the stock yield is relatively lower than the market interest rate. Investors choose investment objects, generally in pursuit of maximum profit as the principle. It is precisely because the rate of return on investing in stocks is higher than the average interest rate in the market that investors will "bet" on the stock market. If the income level of the stock market is lower than the market interest rate level, it will bring relative losses to investors. Purchasing power risk.

This is the risk that stock investors bear due to the influence of inflation. For example, when an investor's stock price and market are optimistic and gains, and at the same time he is encountering a high inflation rate, due to the devaluation of the currency, the investor loses a part of the value of the profit, that is to say, the actual purchasing power of the investor's monetary income may decline. This is taking the purchasing power risk. Because of the existence of inflation, investors may not be able to make a big profit even if their monetary income increases. Because his real rate of return has to deduct the loss caused by inflation. Of course, the existence of inflation does not mean that investors can avoid losses without buying stocks. In order to reduce this loss, investors can only choose the investment object with high yield.

market risk.

refers to the risk caused by the unexpected rise and fall of the stock price, which makes investors make mistakes in decision-making, that is, the risk caused by the fluctuation trend of the stock price, which is just the opposite of the investor's expectation. The reason for market risk is that the stock exchange market is affected by the economic cycle changes of the whole country. The economic cycle is divided into several stages: depression, recovery, upsurge and crisis. At different stages, the changes in the stock market are very complicated. In the boom period, the general stock market is active, trading is frequent, and profits are greatly increased; In the crisis stage, the stock market is shrinking or even plummeting, thus causing huge losses to investors. Therefore, in order to minimize the degree of market risk, investors should understand the law of economic cycle development and change, so as to seize the opportunity, reduce losses and gain benefits.

operational risk.

this refers to the joint operation risk brought to investors by the stock issuing company because of its poor internal management, resulting in losses, resulting in a decline in dividends or even no dividends. In the stock market, this risk is inevitable, because no joint-stock company will have absolute certainty of winning forever. Therefore, investors can only cope with the complex economic situation with their sensitive wisdom, thus reducing risks.

default risk.

default risk refers to the possibility that the actual rate of return of investors deviates from the expected rate of return when the company defaults and goes bankrupt due to poor financial situation. When a company goes bankrupt, ordinary shareholders suffer the most, followed by preferred shareholders, and finally creditors.

(3) Time

Time is a key factor to be considered in investment decision-making, including two aspects: one is to grasp the investment opportunity, that is, when to buy or sell; The second is to choose a good investment period, that is, to buy stocks in the short term or to hold stocks in the long term.

choosing an investment target

when making a stock investment decision, you must determine which stocks to invest in, that is, you should carefully choose stocks.

first of all, when choosing stocks, investors should analyze the basic situation of various stocks, especially the operating status and development prospects of their issuing companies, and try to understand their first-hand materials so as to make reliable judgments and correctly evaluate the prospects of stocks. General stock companies have consulting institutions, and investors can obtain relevant information through consulting. For example, (1) the historical background, profit record and prospect of the issuing company; (2) the management level and research and development work of the issuing company; (3) the popularity of patents and trademarks of products; (4) the growth estimation of the company; (5) the company's production capacity and diversification of operation; (6) Whether the company's current assets and current liabilities are reasonable; (7) the company's labor relations; Wait a minute. Based on this, we can estimate the income of the enterprise and then decide what kind of stock to choose.

Secondly, it should be noted that there are many factors that affect the stock price, and at the same time, the operating conditions of joint-stock companies may be covered up by some imperceptible phenomena. The operating conditions of some joint-stock companies are still good at present, but they may be declining; Some joint-stock companies have higher dividends and bonuses, but they may also be at the expense of reducing the company's capital accumulation; The market price of some stocks has been firm all the way, but it may fall all the way.

Thirdly, investing in stocks should also have an accurate valuation of its own economic strength and preference. For example, how much money can be invested in stock trading? What is the investment goal? Is the investment experience rich? What kind of stocks do you prefer? What are the prospects? Wait a minute.

there are roughly the following ways to diversify investment risks:

(1) buying different stocks.

holding the stocks of several companies can greatly reduce the risk and make a relatively satisfactory return compared with only focusing on one company.

(2) Buy stocks by stages.

when buying stocks, we should diversify our investments. Because the fluctuation of stocks has its own periodicity, it is good and bad. If you buy too many similar stocks at one time, the risk will increase, and it is likely that the stock market will be depressed for a long time without gains or even losses. The usual practice: first, the average purchase method, that is, the stock price falls and buys in batches; Share prices rose and sold in batches. This will not cause losses because the stock price fluctuates greatly after a sale or purchase, and it can also provide sufficient time for the next investment plan; The second is the regular purchase method. That is to say, in the case of correctly grasping the market and predicting the prospect, you can buy stocks quarterly or monthly. By adopting this method, investors should strengthen their confidence and not be swayed by other words.

(3) Different regional investment laws.

that is, buying stocks from different regions, and participating in international stock investment if possible. Generally speaking, although the stock markets in various places are internally related, the stock prices in various places are self-contained, which depends on the operating conditions of the joint-stock companies that make up each stock market. Because it is impossible to be uniform whether the operating conditions are good or not, this provides a prerequisite for investors to get different dividends. If you only invest in one place, you are likely to take too much risk because of the shock of the stock market there. Therefore, if you diversify your investment in different regions, you can get relative benefits in different levels of economic development.

(4) Buy stocks in a balanced way.

It means that investors diversify their investments in active stocks and relatively inactive stocks, and buy some of each. Diversified investment in stock types can, on the one hand, obtain stable relative returns; Secondly, we can also complement each other through the complementary dividends of the two kinds of stocks, so as to make up for the arrears and bring out the best in each other. Of course, when adopting diversified investment, we should objectively consider our own economic strength, ability to analyze information and market, and whether we can bear a large workload, so as to decide whether it is our best choice. Generally speaking, the principle of diversified investment does have the effect of low risk and good return.

determine the timing of investment

after determining the stocks to be selected, the most important issue is to choose the favorable timing for buying and selling stocks. Because high-quality stocks don't necessarily mean high returns, the return rate of stock investment fluctuates with the rise and fall of stock prices, so investors should choose to buy when the stock price is undervalued and sell when the stock price is overvalued, so as to keep the portfolio in a satisfactory state.

it is a highly technical and difficult decision-making process to determine the best investment opportunity according to the changing trend of stock price.

There are many factors that affect the stock price change, including stock companies, markets, politics, economy and human factors. Therefore, to judge and analyze the trend of stock price changes, we can judge and determine the timing of stock trading from chart analysis, that is, technical analysis; We can also judge the timing of stock trading from factor analysis; We can also judge the timing of stock trading from comprehensive analysis.

It is an important step for investors to determine the investment opportunity based on the stock price trend. However, to correctly judge the stock price trend and determine the best investment time, investors need to have a solid basic knowledge of stock investment and master the basic techniques and essentials of stock price trend analysis. As well as rich practical experience and decisive decision-making consciousness in stock investment.

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