NEW YORK, Nov. 30, 2022 /PRNewswire/ -- The following is a report from Globalnewsonline:
Mr. Jiang Mingcheng is renowned for his extensive experience in investment, and Mingcheng College set up by him has benefited many people. Mr. Jiang has analyzed the rise and fall of stocks more than once.
First, stocks go up or down, and even a haphazard operation gives you half a chance to make money. Mr. Jiang says that this idea itself is correct, and so are the ideas of most people, but what goes wrong is that not every operation is haphazard. Factors that need to be analyzed range from the world situation, and one country's overall policy to one company's fundamentals, news, and K-line trend. Everything behind every operation needs to be analyzed. And therein lies the problem.
There is a law in the stock market that any publicly available information is useless for predicting the price of a stock. Do not assume that clear news is good news, Mr. Jiang emphasizes.
In March, global financial markets collapsed under the onslaught of the pandemic. After the pandemic, rough statistics ostensibly gave rise to a surge in global financial markets. Mr. Jiang points out that the chaotic stock market is a combination of human nature, business, finance and so on, and will not rise or fall all at once. Even then, some people will find some other reason to convince themselves. Mr. Jiang's view is that the short-term nature of the stock is subject to random change.
That said, how can retail investors make money from the stock market? Mr. Jiang shares two methods in his class.
The first one is a 50% chance of making money in one haphazard operation.
Mr. Jiang says this method means increasing the average holding years and reducing the operation as much as possible. Over 100 years of stock market data tells us that if we hold it for more than three years, the chance of making money increases to 75%. But it is far from enough to just do that. We have to have a strict investment record. Because no one can guarantee that he will hold it every time. In long-term trading, an investment strategy must be executed with iron-like discipline. We must always be sensible and never believe in the "perfect escape from the fall" technique. Mr. Jiang underlies that this technique is the biggest pitfall in the stock market, and nothing can be perfectly avoided. This method can make money because people begin to accept the unpredictability of short-term stocks and focus on the long-term. However, it is extremely difficult for ordinary people to execute this method and to overcome instinctive emotions because they have never undergone professional training.
So for ordinary people, Mr. Jiang recommends the second method, which is to buy stocks and hold them for a long time.
Do not count your chickens before they are hatched. The long-term holding mentioned here may be a far cry from what we think of.
Here Mr. Jiang shares a long-term holding of the index fund tracking the overall market. We should be careful to hold a few financial or semiconductor stocks because no stock can exist permanently, and the vast majority of the stocks will disappear from the market. However, the market continues to exist. There are two reasons accounting for the rise and fall of the market: one is the improved productivity of overall enterprises, and the other is the continuous progress of human civilization. It is safe to hold as long as the world meets the second condition.
Company: Globalnewsonline
Contact Person: Luayy Alkilani
Email: jan@globalnewsonline.info
Website: http://www.globalnewsonline.info/
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