Although it was her first time buying stocks, she felt a little nervous, but the desire to get rich overwhelmed everything. Kong Shiyan mustered up her courage and bought in at around 25 yuan. After deducting the handling fee, she bought exactly 2,000 shares.
"What's next?" she asked.
Yun Luo: "Work hard and wait patiently for the wind to rise."
"Okay." Kong Shiyan looked at the 2,000 shares in her account, her eyes full of anticipation.
**
A week later, the stock price dropped to 24.5 yuan instead of rising.
"Calm down, this is only temporary!" Kong Shiyan warned herself.
In the second week, the stock price rebounded slightly and then rushed towards 24 yuan.
Seeing that the stock market was hitting new lows every day, Kong Shiyan could hardly control her tense arms.
"Wait a little longer." She tried her best to suppress the various distracting thoughts that emerged in her mind. "Before the real estate company's stock price rose from 8 yuan to 37 yuan, it once fell to 6.5 yuan."
"From 25 yuan to 24.3 yuan, how can this be compared?"
Another two weeks passed.
The stock price fell every day, and even accelerated in the last two days, falling to 22.8 yuan in one breath. Kong Shiyan couldn't help but doubt her life.
You know, she had great hopes before buying the stocks. But she didn’t make any money after investing, and she lost her principal first.
What does it mean that the price of 25 fell to 22.8? That’s a loss of nearly 9%!
If she puts the money in the bank, she can get a steady 4% return every year. How can she lose money?
Kong Shiyan woke up from her dream of becoming rich overnight and regained her composure. She began to suspect that she had done something wrong.
Maybe, as others say, no one who buys stocks will have a good ending. She should stick to her principles and stay away from casinos.
While I was daydreaming, Yun Luo appeared, "I told you long ago that the price won't go up immediately after you buy it. You have to be prepared for a long-term battle."
Kong Shiyan: "It doesn't matter if it doesn't go up, but it can't go down so much!!"
A 9% loss on 50,000 yuan is a loss of 4,500 yuan! How long would she have to save by just living frugally?
When she thought about it, Kong Shiyan's heart was bleeding. She wished she could travel back in time and go back to a month ago to stop herself from buying stocks.
Yun Luo: "As long as you don't sell, it's all floating losses."
Kong Shiyan: "But it hurts my heart to watch it!!!"
Yun Luo: "Then don't look at it. It's enough to check the account once a week."
Kong Shiyan: “…”
As long as she doesn't look at it, the loss will not exist? The system is really great.
I really want to go to the kitchen and get the kitchen knife.
Kong Shiyan rubbed her brows, her face showing unspeakable anxiety, "Are you sure this stock will go up?"
Yun Luo: "It's a good company that can make money, so of course someone will buy it."
"Then why isn't it going up?!" Kong Shiyan couldn't help but growl.
She could never understand the logic behind this.
Yun Luo: "Because there are not many qualified investors. Rather than investing in good businesses, people prefer to chase the rise and fall to make quick money."
“The reality is that mispricing often occurs in the market.”
"Loss-making stocks are being hyped up to sky-high prices, while high-quality bonds such as those of banks are not being bought, and prices have hit record lows many times. For those who understand the business, this is a once-in-a-lifetime buying opportunity."
In just one month, Kong Shiyan lost more than 4,000 yuan in savings. She felt very uncomfortable. "How long do I have to wait before the stock price starts to rise?"
Yun Luo: "When the time comes, what should rise will rise."
Yun Luo: "If you can't wait and hold on, then you are not suitable for stocks."
Yun Luo: "Don't think about getting rich in the future. Work hard and use your spare money to invest in financial products."
Kong Shiyan rubbed her hair and said frustratedly, "I'm sorry."
Stock prices will fluctuate, as we were warned at the outset.
But she didn't expect that looking at the losing account would feel so tormented.
Kong Shiyan tried her best to stay calm. She thought that maybe putting the stocks aside and not looking at them would be beneficial for long-term holding.
While thinking, Yun Luo reminded, "Don't forget to buy new stocks."
Only when the holding amount exceeds 10,000 in 20 trading days can you apply for new shares. The chance of winning is as low as winning the lottery.
However, participating in the subscription at least gives you another chance. What if you win?
With this idea in mind, Kong Shiyan insisted on buying new stocks and never missed one.
In addition to subscribing for new shares, she also insisted on subscribing for convertible bonds.
To subscribe for convertible bonds, you don't need funds in your account, and you can subscribe even if you have an empty account. You can earn 50-200 yuan for one winning ticket. If you are lucky, you can at least give yourself a chicken drumstick when you eat.
**
In a blink of an eye, another month has passed.
The stock price fell to a low of 22.5, and then rose back to 23.
Kong Shiyan looked at the account and thought to herself several times, why not stop thinking about getting rich?
Selling stocks at a loss is like spending money to learn a lesson. From then on, she lived her life peacefully, not investing in risky investments, not playing stocks, and staying away from casinos.
Once, I had my hand on the mouse and had already entered the selling price and selling quantity, and I was just about to click OK.
Kong Shiyan thought about it again and again, and finally decided to close the page.
This is what she thought. If this is a business, and she could buy one ten-thousandth of the shares for 50,000 yuan before and one ten-thousandth of the shares for 46,000 yuan now, she should be happy and increase her investment.
And what about her?
I was anxious because the market price had fallen and I was afraid of losing all my money.
In fact, if you think about it carefully, loss-making stocks are still on the market, so what is there to be afraid of with high-quality growth stocks?
At worst, we can wait for the bull market.
Anyway, she heard from others that in a bull market, all stocks, whether good or bad, will rise together.
If you hold on until then, no matter how much money you make, at least you won’t lose money.
Kong Shiyan thought about it and felt that her operation was fine. So she closed her account and never looked at it again, living her life as she did before she bought stocks.
**
As time passed, Kong Shiyan gradually forgot that she had bought a pig farming stock.
She goes out early in the morning every day and comes home late at night. She reads financial books in her spare time and her life is extremely fulfilling.
In a blink of an eye, three months passed.
Kong Shiyan had just performed surgery on her pet cat. During the break, she overheard a colleague mention, "The stock market is doing well recently. Did you buy some?"
Kong Shiyan was stunned when she heard this.
Is the stock market doing well lately?
When she got home in the evening, she couldn't wait to open her account. She saw that the account showed that the market price was 29. The originally green numbers turned red at this moment, and the profit and loss ratio also changed from -9% to 16%.
She bought it only half a year ago and made 16% profit!
Kong Shiyan was so surprised and delighted that she almost screamed with excitement.
At this time, she had completely forgotten how anxious she was when she was trapped.
Yun Luo showed up at the right time to pour cold water: "Don't be too happy too soon, it's normal for stock prices to fluctuate."
"What do you mean?" Kong Shiyan was stunned.
An idea suddenly flashed through her mind, and her expression suddenly changed. Her voice trembled, "Could it be that the rise is only temporary, and will fall back later?"
Yun Luo: “It’s possible.”
Kong Shiyan: “…”
She bit her lower lip and thought for a long time, and finally suggested, "It's profitable now, how about I sell the stocks first?"
Yun Luo: "What if it doesn't fall, but goes up directly?"
Kong Shiyan: "I'll catch up with him when the time comes."
Yun Luo: "What if I get caught up in the chase?"
Kong Shiyan: "...Then take it again."
"What happened to your agreement to only invest and not speculate? Why are you starting to chase the ups and downs?" Yun Luo asked.
Kong Shiyan opened her mouth, speechless.
Yun Luo sighed: "Scientists have done experiments and found that the pain of losing 10,000 yuan is 2 to 2.5 times the joy of earning 10,000 yuan."
"That's 'loss aversion' in behavioral economics."
“To invest well, you have to overcome your instincts and buy and sell according to a plan.”
Kong Shiyan wanted to cry. Investing is so difficult! Really.
"I guess I'm not destined to make a lot of money." She looked depressed and slumped in her chair.
Yun Luo pondered for a moment, "Let me tell you a story? Maybe it will help you understand better."
Kong Shiyan: "Tell me about it."
Yun Luo: "There is a pig farm in the suburbs with assets of 1 million. By chance, the boss allows you to invest and do business with him."
"You are very happy, so you take out 50,000 yuan to join."
"The pig farming business is very simple. You use money to buy piglets, buy feed to raise them, and then sell the live pigs for slaughter and meat."
"Because the boss is very experienced and feeds the children scientifically, after deducting all costs, the one-year return on equity (ROE) of this business is as high as 40%."
"If you invest 50,000 yuan, you can earn 20,000 yuan a year. However, we are currently in the expansion phase, so the money we earn will not be distributed as dividends, but will be reinvested to increase production."
So far, Kong Shiyan could understand, "Then what?"
Yun Luo: "There is someone who envies you for being able to do business with the pig farm owner, and he also wants to join."
"But the boss said that there were enough partners and he didn't want to add anyone else. So this new guy set his sights on you."
"He said, didn't you invest 50,000 yuan and hold a certain amount of equity? Give this part of the equity to me, and I will buy it at a high price!"
"At first you disagreed, but he opened his mouth and said 80,000. Then he asked for 100,000, and then 130,000. After hearing the price, you gradually wavered."
"The offer of 130,000 is equivalent to earning several years' worth of money in advance. With this money, you can find another good business to invest in after you exit. There is no need to stay here."
"It's also a good thing for newcomers. Because they can't find good investment channels, they can only buy bank financial products, with an annualized return of about 4%."
"After buying your shares, it is equivalent to a principal of 130,000 yuan and an annual profit of 20,000 yuan. Although the annualized return is only 15% (it is too expensive), it is better than bank financial management."
Kong Shiyan understood, "Holding stocks now is equivalent to holding equity. The fluctuation of market price is equivalent to people constantly making offers to me."
"If you sell it at a low price, there's no need to give the business to others."
“If the price is high, you can consider transferring the equity and find another good business to invest in.”
Yun Luo: "Yes, that's it."
"From this perspective, there's no need to buy and sell too frequently." Kong Shiyan murmured, "Wait until someone offers a high enough price, then sell the business. Before that, just hold on to the shares."
Yun Luo: "Yes. If you sell a popular business, you may not be able to buy it back, so it is generally not recommended to bother."
After choosing a good company to invest in, all investors need to do is wait.
Unfortunately, too many people cannot sit still and end up chasing rising and falling prices, sinking with the capital.
"Be patient." Kong Shiyan kept reminding herself.
It’s easier said than done. Watching the stock price go up and down, my hands are itching to move, and I can hardly control myself.
What's even worse is that I initially selected more than ten stocks. Excluding the real estate and home appliance industries, technology stocks rose by 50%, pharmaceutical stocks and environmental protection stocks rose by 30%, but the pig farming stocks I bought only rose by 16%.
Why did I choose this lousy chicken after so many choices? Environmental protection and breeding, I would buy 25,000 each!
Kong Shiyan was upset. She uninstalled the software and refused to watch it again.
The author has something to say:
Win the new shares/bonds first, pay later
**
Summarize the main idea
#General opinion of the public: Good stocks/good companies should rise immediately after purchase, otherwise they are worthless#
#Actual situation: Due to various reasons, the stock price sometimes fluctuates and consolidates for one or two years#
#Investors are angry about changing stocks. The wind is coming. It is possible for the original stocks to double in one year, triple in two years, and quintuple in three years.#
#Including the consolidation period, the annualized rate of return is extremely high, but investors often cannot wait#
**
I saw a good article and excerpted it for popular science.
Some people ask, the country will provide free treatment for the new coronavirus, so why do we still need to buy insurance?
However, the medical insurance + special financial allocations only cover the treatment costs after being diagnosed with the new coronavirus.
1. You are responsible for the cost of treatment before the diagnosis is confirmed.
2. The costs of possible sequelae and long-term rehabilitation treatment after recovery shall be borne by the patient himself.
3. The loss of income for yourself and your family due to medical treatment, as well as other additional expenses such as nursing care, shall be borne by yourself.
4. If you are unlucky and die, the government may not give you extra compensation. Who will take care of your parents in the future? Who will pay for your children's education? What about the family's daily expenses and mortgage?
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