Chapter 31 Don’t stop loss just for the sake of stopping loss
Lin Menghan followed Li Feng's finger and saw that Yijing Optoelectronics had emerged as a rising star since 2009.
From around 1.7 yuan at the beginning of the year, it soared all the way to 16 yuan in April 2010. After a slight adjustment for a few months, it soared again and reached a new high of 28.36 yuan in March 2011!
16 times in two years!
A truly rare bull stock.
Lin Menghan's breathing couldn't help but stagnate.
For any stockholder, if he can buy such a stock, it means that his assets have reached a new level and that he has taken a big step up in his social class.
Li Feng continued to point out: "Do you know why?"
"Why?" Lin Menghan asked back.
"Because Yijing Optoelectronics is engaged in the photovoltaic new energy industry, those years were the golden age of the photovoltaic industry. The products were in short supply, and the company's profits hit record highs. Countless institutions, speculators, and stockholders flocked in, pushing the stock price to 28 yuan!" Li Feng said slowly.
"In recent years, the domestic photovoltaic new energy industry has been plagued by overcapacity, and foreign countries have been conducting anti-dumping investigations. This has led to a difficult situation for the industry. Yijing Optoelectronics' profits have plummeted, with each quarter worse than the previous. Countless institutions, speculators, and investors have rushed to flee, driving the stock price down to 20 yuan, then 10 yuan, then 6 yuan, 4 yuan, and 3 yuan..."
After a pause, Li Feng pointed to the K-line chart of Yijing Optoelectronics and said:
"Look, from a fundamental perspective, there's no future for Yijing Optoelectronics in the future. From a technical perspective, the chips are piled up like a mountain."
"Reporter Lin, there's a big problem with your first step in stock selection."
"Just like getting married to a scumbag, buying this stock was a mistake from the start."
Li Feng summed it up succinctly.
These words were like a heavy punch that hit Lin Menghan's heart.
She frowned tightly and stared at the K-line chart of Yijing Optoelectronics. Her hands clenched unconsciously and her palms were full of sweat.
She didn't want to admit it, but she had to.
I really only saw the trees and not the forest.
They only focused on the daily and weekly lines, but did not carefully analyze the monthly and annual lines of Yijing Optoelectronics, especially the trend of Yijing Optoelectronics since 2009, not to mention the fundamental news of the industry.
Although I have held the shares for several months.
At this moment, I feel this feeling is particularly strange.
"Is it possible, is it possible that its industry cannot be reversed?" Lin Menghan murmured to herself, still unwilling to give up.
Li Feng sighed softly and said:
"As the saying goes, 'the longer the horizontal line, the higher the vertical line,'" he said. "The reverse is true: in this industry, the more prosperous it is, the more tragic it will be during its downturn."
"This wave of market surges, which has surged more than tenfold and coincided with the golden age of photovoltaics, is bound to end in a trough, which will surely be ended by the collapse of several major companies."
"As for the technical aspects..."
"Alas... There are thousands of stocks in the A-share market. Why does reporter Lin have to be so obsessed with just one?"
Lin Menghan turned her head away and stopped looking at the K-line that made her sad.
Li Feng, however, was in the zone and continued his comments, "Also, Reporter Lin, there's a big problem with your second step."
"Um?"
Lin Menghan raised her pretty face and looked at Li Feng.
I saw that he was brimming with confidence, and I began to believe it without realizing it.
"Stop loss, stop loss. You can't stop loss just for the sake of stopping loss. You have to know why you are stopping loss, otherwise the more you stop loss, the more you lose." Li Feng saw that Lin Menghan listened attentively, and he also waved his chopsticks, speaking faster and faster.
"This is too complicated to explain, so let me give you an example."
"I once invested in ST stocks, betting on restructuring. From the moment I bought them, I set a stop-loss standard. If the restructuring was successful, I would sell at the opening. If it failed, I would reserve all losses."
"A few months ago, I also invested in Qinling Cement. From the moment I bought it, I also set a stop-loss standard. If there is no dealer, I will sell it around the Spring Festival when the market is closing. If there is a dealer, I will sell it when the price doubles."
"Similarly, I also invested in Minsheng Bank and set a stop-loss standard..."
Li Feng spoke faster and faster: "When investing, you should sell before you buy. If you can't figure out when and how to sell, then don't buy."
"With your investment method, if there's no banker involved in the stocks you invest in, it's fine. If you're lucky, you might even get some profit. But if there's a banker, the K-line charts they draw will have a hundred ways to stop your losses, causing you to keep losing money until there's nothing left to lose."
These words made Lin Menghan break out in a sweat unconsciously, and her expression gradually became nervous.
"Also, buying stocks depends on the overall market trend..."
Li Feng continued to say,
Zhao Xinyue noticed that Lin Menghan was not in a good state, so she interrupted him:
"Stop! Eat some food first, then we can talk slowly..."
Li Feng saw that Lin Menghan's eyes were dull and felt something was wrong, so he stopped talking.
“This…this…”
Lin Menghan muttered to herself, her head buzzing, a constant struggle between her conscience and her conscience.
Li Feng's words completely negated and overturned her own investment ideas and methods, which made it difficult for her, who had always been proud, to accept.
How is this possible? !
But the facts are right in front of us, and we have no choice but to admit it.
“Drip—drip—drip—”
Zhao Xinyue turned up the temperature of the induction cooker, and Li Feng put tofu, bok choy, spinach, lettuce, sweet potato slices, etc. into the hot pot one by one. They were mostly cooked in a few breaths.
"Menghan, eat some food."
Zhao Xinyue saw that Lin Menghan was not in good condition and advised her.
Lin Menghan suddenly woke up from her dream and said, "So... that's how it is... so that's how it is... so that's how it is..."
"Menghan, what are you talking about?" Zhao Xinyue asked with concern.
Lin Menghan's expression suddenly became extremely excited, her eyes gleaming with a strong light. She said, "I understand. Stock selection not only depends on technical aspects, but also on the fundamentals of the stock, and also on the overall market trend."
"Li Feng, do you think I'm right?!"
Lin Menghan's eyes suddenly became burning as she looked at Li Feng.
"Yes, yes, reporter Lin is worthy of being the most promising host of the TV station. He gets things right and people understand what he says as soon as he speaks." Li Feng praised.
After figuring this out, Lin Menghan's appetite suddenly improved. She picked up a large bowl of meat and vegetables for herself, hesitated for a moment, and picked up a few slices of mutton for Li Feng, saying:
"Thank you, Reporter Li, for your guidance. I really benefited a lot today."
"Well, it's just communication, just communication with each other." Li Feng glanced at Zhao Xinyue. Zhao Xinyue seemed a little unhappy, so she put down her chopsticks and didn't eat the mutton.
Lin Menghan was eating hot pot while silently calculating her stock account in her mind.
Last year, I originally had a capital of 70,000 yuan, but I stopped the loss twice and lost more than 10%. Later, I stopped the loss twice on Yijin Optoelectronics, and the loss suddenly expanded to about 30%!
The loss was more than 20,000 yuan, which was equivalent to several months' salary.
I, Lin Menghan, must recover the losses!
She just kept thinking about eating, and after thinking for a long time, she still didn't know what stocks to buy to recover her losses.
I couldn't help but ask, "Reporter Li, what stocks should I buy now?"
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