How To Identify The Misunderstanding Of Stock Investment

　　 shares Price fluctuation is the result of market game, and it is also subjected to some external environment in a short time. market Emotional impact. When the market sentiment is high, a high premium will be given. When a panic or a market is depressed, the stock price will be underestimated. We must seize the fluctuation of the market and profit from it. For a long time, many Investors? Friends in the stock market did not earn money, or even a serious loss, the reason is largely attributed to some misunderstandings in the stock investment, eventually forming a loss or not get a good investment income. The main findings are as follows:

　　 Mistaken for a low price is a small risk.

Most of the investors like to buy some low priced stocks. They believe that the risks are low and the chances of making profits are large. In fact, this is a big misunderstanding. In foreign mature stock market, the stock price of a company with strong profitability and some insolvent companies is very different. Taking the US stock market, the stock price of Boxill Hathawayy, the listed company of investment master Warren Bafut, is over 100 thousand dollars per share. On the contrary, many stocks are less than 1 dollars. For example, there are several hundred Hong Kong dollar shares in Hongkong stock market, but there are more so-called penny stocks, less than HK $1. Due to the immaturity of China's stock market and the formation of the pattern of "dog to dog", the so-called ST shares and performance shares are sought after. Even some funds are involved in it. There is no denying that there is a precedent for the black chicken, but there are still many painful lessons from the delisting of the company. To make stocks is to make clear and approximate events. The distortion of market prices is to restore normal valuations sooner or later. In 2007, 5. 30 performance share continued to decline, which is a good example. In fact, the choice of stocks mainly depends on whether the listed companies have continuous performance growth capability, rather than the share price. According to statistics, this year, high priced stocks have far outperformed the market, and many have continuously hit new highs, such as oriental gardens, the Yanghe River shares and so on.

　 The lower the P / E ratio, the smaller the risk.

P / E is a dynamic figure. This year it may be blue chip stocks. Next year there may be losses. Therefore, if we want to make a detailed analysis of the specific company, we should not only choose the stock price ratio only based on the price earnings ratio, but mainly see whether the listed companies have clear high growth ability in the next few years. Some industries are cyclical. Do not buy stocks of related companies when the peak of the industry or the industry is not warming. Most enterprises have several stages of growth, maturity and recession. When buying stocks, it is best for the enterprises to grow at a high speed. You will share the benefits from the growth of enterprises, preferably those with monopolistic industries and independent pricing power. Some enterprises do not have the ability of continuous growth through asset income, such as transfer of assets or other investment income. Although the P / E ratio of stocks looks very low, if they buy, there will be no good investment income or even a loss. There are also stocks like basic or traditional industries such as banks, steel and petrochemical industries, which can not expect high price earnings ratios. On the contrary, some emerging industries or prominent companies offer high price earnings ratio because of good market expectations, and the P / E ratio will be significantly reduced through the continuous growth of performance. It is not difficult to understand that during the overall decline of the index this year, a number of cattle stocks emerged, such as the concept of lithium with new energy, and some stocks of life sciences, environmental protection and energy saving sectors hit a new high.

There is no such thing as war, the water is not constant, the stock price is up and down, and it is the charm of the stock market. The market is always right, we have nothing to complain about, timely adjustment of investment ideas, conform to the market, making money is the absolute principle. There is a good saying: "the way of thinking decides the way out, the head decides the pocket", and with the correct investment idea, you are not far away from success.

Anyone who has "stock age" for more than fifteen years may be somewhat impressed by the stock market in the mid 90s of last century. At that time, only one of the most fashionable themes was speculation. At that time, Shanghai local stock was the most active variety. Because the share capital is very small, some listed companies in Shanghai have only a few million shares. Tens of millions of people can easily control a single stock. But then, with the opening of the securities market to the people of the whole country, this situation was soon broken. The first impressive stock was Sichuan Changhong. At that time, the performance of Sichuan Changhong was about 1 yuan per share, while the stock price was only about 8 yuan. In a period of time, the stock did not perform well. The only reason was that the circulation of capital stock was relatively large. According to people's thinking at that time, excessive circulation of capital stock was not possible. However, not long after, the stock jumped up from 8 yuan to more than 50 yuan. This shows two points. First, the market itself is capable of correcting errors and discovering value; two, people's ideas will adjust themselves as the market changes. The reason why Buffett was regarded as a stock god is that he can always get his own belief value investment to get the average income higher than the average person.

As the saying goes, history will not repeat itself, but it will repeat itself in the history of securities market. More precisely, history will not repeat itself simply, but it will repeat itself in a changing way. Looking back to the Daniel market in 2007, the theme stocks and concept stocks were popular at the beginning. But when the market entered a more rational and mature stage, the blue chips began to exert force. The "28 phenomenon" believed that the friends who had experienced the bull market were deeply impressed.

In the current market situation, the most popular hype themes are emerging industries, energy saving, environmental protection, consumer and resource stocks. The logic behind this investment preference is that the industrial policies of future countries will be inclined to these industries and the market prospects of listed companies are bright. But an indisputable fact is that the stock that has overdrawn the expected earnings of N over the years will at least reduce its margin of safety and increase its investment risk. When the concept stocks are popular, it is not easy to stick to the belief of value investing. Because the price earnings ratio of stocks you hold is already very low, but it doesn't go up, and those stocks with fashionable themes often hit a new high. This will inevitably lead to lack of strength and impetuosity. Although it is not yet predicted, the market will definitely be able to complete the transformation of market style in a certain period of time, but it can be seen that some blue chips that haven't completed the valuation repair have relatively high margin of safety, and the probability of future profit is relatively large.

For example, the national development and Reform Commission announced the decision to raise the price of refined oil recently. This should be the best news for PetroChina and Sinopec. However, after the two stocks fell sharply in the morning, they were overcast, but some industries that should have been regarded as bad ones, such as shipping and Aviation stocks, had a certain increase. From the valuation point of view, there is no doubt that the increase in oil prices will increase the profit margins of the oil refining sector. At present prices, Sinopec's P / E ratio is only a little more than 11 times, which is significantly lower than the market average price earnings ratio. Although the gross profit margin of the refining sector is not high, it is likely that the overall profit forecast and future development will be good and definite if comprehensive analysis is conducted. It should be a scarce resource for a listed company, which is absolutely monopolized in the industry, and has a complete industrial chain and the "upstream and downstream". Some industry researchers believe that the reasonable valuation of SINOPEC should be about 13-15 times, and is still at a stage of serious undervaluation of value, so the value restoration in future market will be a big probability event.

It is often said that the market is always right. For a long time, this is absolutely true. But at some point, the market sometimes makes mistakes. For example, now, nonferrous metals and consumer stocks are often three to fifty times the price earnings ratio, while PetroChina and Sinopec also have stocks of resources and big consumption concepts. What is the only reason why stocks can be more than ten times? Smart investors may think that when most investors in the market make collective mistakes, I only choose those with the highest margin of safety and the most likely future profitability. If you stand a little lonely time and stick to your investment belief, you will make a profit with certainty.