6 Stupid Ways to Invest in stocks!Investors should never do this
Are you still learning from the successes of others?Why do jack Ma, Charlie Munger and other elites always tell us to learn from failure?Because success can’t be duplicated, but mistakes can be avoided.That’s what we’re talking about today.Those of you who are in the investment business know warren Buffett, but along with him is a very low-key and intelligent guru named Charlie Munger.He told us to always think backwards. He once said that if I knew where I was going to die, I would never go there.Friends who have seen the documentary of Alibaba all know that employees in the early stage of Alibaba have to learn to stand on their heads. Even Jack Ma once said that learning successful experience is not very useful, because everyone’s success is determined by too many factors, and the most valuable thing is to learn how others failed.So today we all think about the reverse, we don’t think about how to be a successful investor, we think about how to be a leek, how to lose money, and then avoid this.Here’s a list of six investing mistakes that can easily go wrong.Method one: listen to the news to buy stocks this should be the most common, become the method of leek has a long history, long history, endless life, leeks come and go, let me think of a poem, wildfire burn endless, spring breeze blowing and health.It is very tempting to buy stocks after hearing the news. The main force of buying can help you make money, while the main force can lift sedan chair for you. If a person really has news and wants to treat you well, the most correct way is not to give you news, but to give you money directly, because there are many ways to give you money, but to give you news in case you earn more than him.So if there was news, it wouldn’t be news if you knew.You and I will make mistakes, maybe this is human nature, so want to listen to the news when leek buy stocks, this method after many leek vote, loser index is 10, almost all leeks have done.Method 2: pursue hot stock what is hot stock?Open any stock selection software, the most searched is the hot stocks, hot stocks are often reported by the news media, promising good earnings, great growth potential, we have the same view, we do not deny that there are a large number of excellent companies in the hot stocks.But if the investment is to find a good company, is also a bit too simple, a lot of people is not can not find a good company, but did not notice the valuation, hot stock valuation is too high, often when you know the price has been up to the sky, maybe you bought will continue to rise, but usually you buy it down, and then you buy at the top of the mountain.The best investments are those that make money quietly in areas that people don’t pay much attention to.Method 3: Frequent trading For frequent trading is definitely the most high-quality VIP customers of securities brokers, they are playing with the noise of the market every day, challenging their own luck every day, so as to waste their wealth, these people overturn their investment philosophy and logic every day, chasing the rise and fall frequently.So here is really a simple and effective investment strategy, called index fund, if you do not have the time and energy to learn investment, then might as well understand what is the index fund, which is the only investment category recommended by Warren Buffett.Method four: see news to see broker, grind a newspaper to buy a stock, if you understood this company from the news, so mean this company is more popular.Because even you know this, and then you will pay attention to this company, open the research reports of various securities firms, after reading many securities research reports, feel that this company is the perfect investment object.Then you see all the ratings on the company are buy overweight, you get excited, you sell, and then maybe you buy at the top.In fact, you can ask yourself a question: How many times have we seen research papers from securities firms advising people not to buy the company?Short selling is impossible in China’s capital market, and brokers will not want to offend listed companies. There are few bearish reports. Therefore, when reading research reports of brokers, we must be especially alert to risks objectively and think with common sense and logic.Brokerage research papers are mostly free, but free things are sometimes the most expensive.Method 5: Always use your first level of thinking to think so what is the first level of thinking?Simply put, because more and more people travel, so I will open a travel agency;The thinking that I’m going to invest in the stock market because it’s going up is called tier one thinking.The truly excellent investors must be based on more in-depth thinking, more and more people travel, then what are the upstream, middle and downstream enterprises in this industry?What is the current state of the industry?What types of companies can be boxed into each other, what competition will they face, and are there ways to fend off competition?You should know that some industries are easier to make money than others, and it is easier to build moats, so always use the first layer of thinking, make investment decisions are bound to fail, the loser is only for reality.If we all know that investing is a game of probability, just like starting a business alone, there are a lot of uncertainties.Investment need to independent thinking, decisive decision-making, at the same time also need a little luck, frequently explosion ray on capital market recently, so if you don’t build a portfolio, just buy one or two stocks, then you face market volatility will be very big, high risk, little slip will let their assets shrink significantly.Therefore, it is very critical to build a portfolio, never full stock, must set aside a part of the cash position, to learn to rebalance cash and stocks, properly handle the portfolio, so if you do not build a portfolio, heavy holdings of one or two stocks will also let you exposed to huge risks.Well, these are the six ways to fail in investment, we now know these methods, strive to avoid them in the way of investment, then BELIEVE that we are not far from success.To end today’s video with a quote from Charlie Munger: The best way to get what you want is to make yourself worthy of him.Disclaimer: This article is a personal view, does not represent the views or positions of the platform, does not constitute any investment advice, can not be used as your investment basis, you need to independently make investment decisions, risk by yourself.Please confirm that you have the corresponding rights, behavioral capacity, risk identification ability and risk tolerance ability, and can independently bear legal liabilities.Some of the above content and pictures from the network, if there are works, copyright or other content infringement, please contact delete.Historical performance is not indicative of future earnings.Investment has a risk, enter the market need caution!