Chapter 122 My Trading System

Li Feng looked at the older brothers, who were laughing, joking and cursing in the group, and he felt the same way.

Back then, I also walked out of this confused state step by step.

Many stock investors, especially new stock investors, are caught in this vast ocean of stock market. Looking up, they are overwhelmed by the vastness and confusion.

He stretched out his hand and shouted for help, but what was stretched out to him was not a life-saving rope, but a bloody sickle.

Being deceived again and again, being harvested again and again, and again and again, unwillingly returning to the stock market, just to fulfill his dream of financial freedom.

However, how many people can really see through the stock market, understand this ocean, overcome numerous obstacles, break free from all kinds of information cages, and embark on the right path?

And now, the stock market crash has struck again. Some people are wailing and suffering heavy losses, while others are winning and walking away with the money. But how many people can really understand the big picture?

Be able to sow the seeds of hope in despair.

I am afraid that more people are still fantasizing about fighting with the dealers and the main players, guessing about the gaps and thinking about the volume and price.

Don’t you know that it’s just like looking for fish in a tree?

It's useless.

It's useless.

The stock market, especially price speculation, is a pure game of taking money from each other, a simple gambling game.

What you have less is what others have more; when you make money, someone else loses. Stocks are just a chip in a game.

A stock investor said it very well.

When I thought that stock trading was just technical speculation, I lost money quickly;

When I thought that stock trading was value investing, I suffered steady losses;

When I thought that stock trading was gambling, I actually started to make a profit.

These words are very well said and very profound.

To a certain extent, isn’t value investing just another form of gambling?

It’s just that due to the high dividends, low PE and wide moat, there is an extra layer of safety cushion.

Li Feng thought for a few minutes and replied, "See my post on the forum tonight."

Zhao Xinyue, who was standing nearby, saw this and asked, "What are you going to write?"

"What I want to write about, and what you're most concerned about, is what stocks should I buy now?"

"What stocks should I buy now?" Zhao Xinyue became greedy again.

"Then I will systematically demonstrate to you how to trade stocks correctly," Li Feng said seriously.

"First, let's look at the overall trend. The market is currently at 2,700 points. I've analyzed this many times before. For the ChiNext, this marks the beginning of another bear market, while for blue-chip stocks, this is the beginning of a bull market!"

"The old economy will rise from here, and the new economy will fall from here. We should follow the trend, choose the old economy, and stay away from the new economy."

"Secondly, looking at the industry, it's clear that the real estate cycle has already begun. The huge real estate industry chain will drive the entire society into a fast lane. Cement, building materials, steel, nonferrous metals, home appliances, furniture, and even chemicals, hardware and other industries are all expected to develop rapidly."

"We have to select these pigs that are about to stand on the wind's cusp. Once the wind comes, they will all fly!"

"Third, when looking at individual stocks, we should choose listed companies that are large in scale, have high barriers to entry, strong in technology, and have a good competitive landscape."

"Guaranteed, when the wind comes, they can fly high enough!"

"The general trend, the industry, and individual stocks, these three conditions are both my safety cushion and my warning line."

“Once any of these conditions changes and the logic for buying the stock reverses, I will sell without hesitation.”

"Even if you don't check and don't find anything, when you misjudge the general trend, you still have the industry and individual stocks as a safety cushion. When you misjudge individual stocks, you still have the general trend and industry as a safety cushion."

After a pause, Li Feng looked at the market and said:

"For many people, this is the most panic-stricken time. But in my eyes, it's a time when gold is everywhere. You can just bend down and stretch out your hand and you can pick up money. This is the starting point of a major economic cycle! I can't figure out why there are still people who are so panicked and selling stocks right now!"

"This is what I've said repeatedly: in the stock market, knowledge is paramount. Once you have this knowledge, stock trading will be like a tiger with wings, like a fish in water, like the wind setting sails, and money will naturally roll in. If you don't have this knowledge, you'll often go against the trend, swimming against the current, and things will become extremely difficult, leading to heavy losses."

"It's not that they don't work hard. Many people study day and night, without sleep, and they take it more seriously than any other job. They focus on it and work harder. Unfortunately, they take the wrong path and go astray. The harder they work, the more they fail."

Unfortunately, many investors are still blindly speculating in the stock market, unable to see the general trend, not knowing why they make a profit or why they lose money. They often make a profit and then lose it again, going around in circles, unable to escape the outcome of losing more than they make.

There are also some stock investors who spend their entire lives maneuvering through various technical indicators and fighting desperately with the market makers. They don’t talk about the level of their skills or the rate of winning, but only ask three questions.

When a bear market comes, can you recognize it?

When the situation gets bad, can you escape in time?

Can you recognize when the industry is about to encounter difficulties?

The answer is definitely no.

Because human energy is limited.

The more deeply and skillfully you delve into technical indicators, the more you will limit your energy and vision to moving averages, K-lines, volume ratios, and prices, and ignore these macro and external changes.

Finally, when the bitter winter is approaching, it will turn into the cuckoo that freezes to death.

Technical indicators are useful, but you cannot make money by simply using them. They are just a symbol, a tool to describe the past history of stocks, and cannot predict the future.

Because the future is determined by many things, such as capital, policies, economy, industry events, stock performance, and so on.

The future will not, and cannot, be determined by a few lines and graphs from the past.

"Li Feng, what stocks should I buy now?" Zhao Xinyue didn't want to think and asked directly.

"You guys tell me first, you can't always copy my homework, you have to find something to eat for yourself, right?" Li Feng said with a smile.

Zhao Xinyue rolled her eyes and said cunningly, "Gree Electric!"

"Why?"

"have no idea."

"You..." Li Feng was speechless.

Zhao Xinyue said proudly, "I've mastered your trading methods now. You always invest heavily in a group of stocks, then observe a group of stocks. When the time is right, you directly convert the observation positions into heavy positions, and then build another group of observation positions, and repeat the cycle. Do you think I'm right?"

"Uh - you are so lazy that you have gained some experience." Li Feng scolded with a smile.

Beside him, Lin Menghan pondered for a moment and asked, "Since the real estate market is about to start, why not buy real estate stocks instead of Gree Electric Appliances?"

Li Feng turned around and said affirmatively, "Menghan, you asked a good question. Xinyue, you need to learn from this and use your brain more."

"I don't use my brain. Your brain is my brain." Zhao Xinyue started to act coquettishly.

Li Feng smiled bitterly and said:

"Well, well, let me talk about Menghan's problem first, and at the same time, educate your brain and see if it can finally open up."

After a pause, Li Feng continued:

"The real estate market is set to take off, but the performance of real estate stocks is different from that of other industries. Revenue is only recognized after the delivery of properties, so their performance generally lags behind by one to two years, or even three years. If you don't believe me, just look at the annual reports of the four major real estate developers, Zhaobao, Jinwan, etc. They are definitely still not good, but in fact, the industry is already very hot."

"Gree Electric is different. After selling goods, it will directly confirm the income and achieve growth in performance. Therefore, the hot real estate market will directly lead to a surge in air conditioner sales, which in turn leads to a surge in its performance."

"Don't you want to choose other industries?" Zhao Xinyue asked.

Li Feng thought about it and thought:

"Other industries? Steel, coal, cement, building materials—they're all burdened by history and have severe overcapacity. After supply-side reform, they might see a brighter future. Furniture, building materials, gardening, home improvement companies have low technical barriers to entry. After much deliberation, I can only choose Gree Electric."

"How much position should we open?" Zhao Xinyue asked, licking her lips.

"Invest heavily in Gree Electric Appliances and establish an observation position in real estate stocks," Li Feng said as he opened his capital account.

—————

The real estate cycle has officially begun.

The last decade was so classic that it is worth it for investors to savor it again and again.

First came the stock craze, then the housing craze.

————

Move your lucky hands and send a wow for free for love.

Your support is my motivation to update