The key to the victory of retail investors against big players: time pressure! (2)

This is the next one, welcome back to the previous one.

Time is the friend of the retail investor

So retail investors can do this

So why has time pressure become the retailer's friend? The same is explained by Yurong in the above figure. Large investors sold before the black line because of time pressure, and at most they bought after the black line was sure to rise. And as retail investors, we are free to choose to buy at any point and continue to hold. Just assume you are lucky enough to buy the black line at the starting point (end of 2016).

"But even if I bought from the starting point and didn't sell it, the last K-line still wiped out my three-year profit?" Yes, it is true from the stock price, but don't forget to also There are dividends! During this period, Yurong issued a total of 17.21 yuan (4.81+5.9+6.5 in the figure below, the 5.5 yuan in 2020 has not been issued yet), if it is not sold, the end is profitable. If it is too little, try to start the calculation from 2013 in the above picture, you will find that you can earn more, please refer to the picture below, the time is correct for the friends of retail investors.

[Little Helper - Trial Calculation of Compound Interest]

Assuming that 100,000 yuan was spent to buy Yurong in 2013 until 2019, and the cash dividends were reinvested during the period, the annualized rate of return would be 15.6%!

you might object

"My money is also under time pressure! The money I buy stocks is to buy a car in three months, and I plan to get married and buy a house in a year! Who says retail investors don't have time pressure?" It's this kind of money, and it's only set for such a short investment time, then I can only say that it's very dangerous, and the bulls will also pull down, but never when the bears are short. Investing with spare money can make time pressure a good friend of retail investors.

How to choose a good company (stock)?

The key is to choose a good company. It is recommended to refer to this article "[Long-term investment 1] 4 selection criteria for long-term investment stocks_ Take Yurong (9941) as an example, Chengxi received 100,000 dividends this year", you can put the Standards are raised.

After buying the stock of a good company, as the author of the book "Do not trade with heart" advocates, hold it patiently and make good use of the compound interest effect. The above annualized return rate of 15.6% is not difficult to pocket.

How to make good use of time pressure for this good friend

let go of time pressure

Turn time pressure into a boost

Astute readers should have discovered that the key is to turn time pressure into your own favor. In <Time is running out and pressure is high? In the article "There is only one thing to do to get rid of time pressure", the author believes that one of the best ways to reduce this pressure is to let go of time. how should I do it? It's very simple, just use spare money + divert attention.

you might object

"Chengxi, those are all achievements that can only be achieved by longs, but not by shorts, right?" That's right, everyone with longs is a master, and all shorts are Teacher Lin. It has been two months since the stock market crash, and I am as scarred as many others, but I chose to challenge the new crown stock market crash. During this period, I did not sell my long-term holdings because I chose to let go of the time pressure.

Chengxi chose not to sell stocks during the new crown stock market crash

My long-term investments are all those in various industries in Taiwan. I'm not worried about them going bankrupt at all, I'm just worried that they won't have more money to invest. I have done a good job of asset allocation, and the monthly cash flow is very stable.

Discipline for continued success

It's not enough to let go of time pressure, I think discipline is more of a propeller to use time pressure well. If "letting go of time pressure" can make us successful once, then "discipline" is the key to continuous success.

My discipline is to record before, during and after the investment, especially the changes in mood and the reasons for the change in operation during the process, and then turn it over and review it later, thinking about what to do next time if it happens again, this effort will make We grew up, and I always believed that.

Retail investors are like small shrimps in the sea. They can survive under the eyes of great white sharks by grasping the key. The key is to "make time pressure your best friend".

(This article was reprinted by Economic Daily)

Investment is risky. This article only shares investment ideas and does not intend to induce stock investment. Please evaluate carefully and be responsible for your own profits and losses.

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