Chapter 218 Everything is Cyclic (Speaking from the Heart)
In the afternoon, the Shanghai Composite Index fell for two consecutive waves, reaching a low of 3006.26 points. Then a wave of funds poured in, pulling the Shanghai Composite Index up and closing at 3031.48 points.
Today, the 3,000 point level was finally maintained, but the trading volume of the two markets was only 956 billion yuan, less than one trillion yuan.
However, this 3,000-point mark has been repeatedly fought over for many years, especially in recent years it has been ridiculed by major financial media, major Vs, and ordinary investors, as if the Shanghai Composite Index should have been at 3,000.
This also means that the battle for 3,000 points this time does not seem to be so intense.
It didn't even make much of a splash on the Internet.
It seems that everyone has become accustomed to it.
Big A, should it really be in this position?
Today, the banking, liquor, consumer, and real estate sectors closed higher, while strong cyclical stocks such as kerosene, non-ferrous metals, and shipping generally retreated. In the real estate sector, many small-cap stocks hit their daily limit, such as Beijing Capital Development, Shanghai Real Estate Development, and Dalong Real Estate. The lithium battery industry chain exploded, and the AI sector continued to retreat.
After looking at the disc, Li Feng packed up a bit, picked up his water cup and prepared to walk home.
At this moment, a piece of news suddenly popped up on the computer: "Black swan strikes, high-yield stocks collapse, and dividend strategies fail?"
When I clicked on it, I saw that a Hong Kong stock called "Zhejiang Shanghai-Hangzhou-Ningbo" suddenly crashed and plummeted by 15.59%. The reason was that the dividend of this stock suddenly dropped from HK$0.40 per share in previous years to HK$0.35 per share, a drop of 15%.
This marks the lowest dividend payout level in a decade.
Investors who used dividends as their main strategy suffered a critical hit of 10,000 points.
In the past two or three years, high dividend strategies have been very popular both in A-shares and Hong Kong stocks, and many high dividend sectors have seen sharp increases, such as coal, oil, telecommunications, highways, etc.
However, can a high dividend strategy really earn you interest once and for all?
If you encounter a situation like this stock, wouldn't you be in trouble?
You must know that everything has a cycle.
People are born, grow old, get sick and die; the moon waxes and wanes.
In this world, nothing remains unchanged forever.
As time goes by, either you get better or you get worse.
For each stock, each has its own cycle.
It’s just that some stocks have long cycles and large increases, so they are known to everyone; some stocks have short cycles and mediocre increases, so they are ignored by everyone.
Stock trading is essentially about speculating on cycles.
Buy at the bottom of the cycle when everyone is pessimistic, and then sell at the top of the cycle when everyone is optimistic, thus forming a complete cycle and completing a round of harvest.
To identify a stock's cyclical position, one must conduct a specific analysis based on the industry in which it operates, rather than mechanically and dogmatically following high dividend strategies, low PE strategies, technical trends, or even more abstruse strategies like hitting the limit or chasing gains.
Those are just trying to find a sword by carving a mark on a boat.
If you only focus on the other party's dividends, then one day others will take away your principal.
You must know that dividends also have cycles.
When a company's performance increases significantly and there is nothing left to invest in its profits, it will naturally increase its dividends. However, when a company's performance declines and it can barely afford to eat, its dividends will naturally decrease.
So, in this game.
Including but not limited to high dividend strategies, even the cycle itself is just a gaming tool.
It’s just that we are all human beings, and we all have the same aesthetic taste. We will all choose to buy at the top of the cycle - when the company’s performance is the best.
And this is the best time for hunters to harvest.
It is also the best time for us to act.
After closing the page, Li Feng walked home with his thermos cup in hand.
Almost at the same time, Lao Chen stared at China Heavy Industry, scratched his head, and sighed:
"What? I've been playing all day, and now I'm only a penny? Is this ever going to end? Buying this stock is like being a widow. It's boring and tasteless."
About half an hour later, Li Feng returned home, turned on his computer as usual, and began to write the book "The Ultimate Bull Investor", with a lot of emotion.
From the beginning, the original intention of writing this article was to systematically review my stock trading experience over the years, sort out my investment routes over the years, and reflect on the mistakes I made on my investment journey...
Therefore, the content of the first 50 chapters is partly storytelling, and partly a subtle review of my own investment journey... It is relatively friendly to novice investors...
Later, I unknowingly wrote more than 100 chapters, covering the period before and after the stock market crash. Those were seven or eight years ago, or even more than ten years ago. I can't remember many things. In order to truly restore the situation at that time, I had to search for a lot of information to improve it. It was very painful...
Therefore, this part of the content is more in-depth and requires a lot of thinking.
Later, I gradually wrote to chapters 150 and beyond. This part of history is very close to the present, making it easier to find information and write. It was also the critical moment when I completely formed my own investment system...
Later, I wrote until the end of last year.
I originally planned to write in detail about what happened between 2020 and 2023.
However, on the one hand, it was winter vacation and I had no time to write, and on the other hand, there was nothing much to write during this period.
Everything that needs to be said has been said.
Everything that needs to be written has been written.
Later, it was March after the New Year.
After trying to write a few chapters and looking back at the previous articles, my mind suddenly became clear.
It can be said that writing this book has brought me the greatest benefit, no doubt about it.
Indeed, output is the fastest way to learn.
This period of writing has greatly improved my investment system, broadened my horizons, and strengthened my investment ideas.
In the future, I plan to write only one or two chapters every day, chat with my fellow stockholders, brag, and talk about things.
On the one hand, it is convenient for me to look back on the past several years without having to go through so much trouble to find information, and I can have a historical record.
On the other hand, it is to constantly force yourself to think, force yourself to read a lot, and force yourself to constantly study policies, markets and various information to output.
Force yourself to keep improving.
From now on, this will be a stock market chat room for fellow stockholders. Everyone is welcome to come and share investment ideas.
Also, if fellow investors feel they have gained something, please be so kind as to give them a free "Generate Power for Love" bonus.
Giving roses to others leaves a lingering fragrance on your hands. I love you all...
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Fellow stockholders, use your hands to make money and send a free gift of love.
Your support is my motivation to update.
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