01.2022 Life Guide
How do retail investors face the treacherous sea of stocks?
Oriental Securities Corporation / Chen Ruiyi
Stocks rise and fall. Will you be happy all day because of the sharp rise in your stocks and worry that you can't eat when they fall? This paper gives you pertinent suggestions: do your homework, make good use of investment tools, set up stop profit and stop loss points, and overcome greed and fear.
In this era of anti inflation, investing in stocks is definitely a good way to increase passive income. However, since the third quarter of 2021, starting from the Evergrande crisis in China and the power cut-off without warning, Taiwan stocks have fallen more and rose less. I believe many people are flustered and do not know how to continue to operate calmly under the fluctuation of the stock market. Here are some suggestions:
1、 Do your homework and don't follow suit
When Xiaobai in the stock market just started, he generally liked to listen to others' opinions and even listen to postcards. He may have a sweet start, but in the end, he often became a helper for others to fry stocks. As the saying goes, "there is no free lunch in the world." In order to avoid the above situation, we should do our homework in advance, understand the basic concepts and common sense of the stock market, such as chips, K-line, etc., and spend time reading the annual report and financial report (note) of the investment target, so as to master the economic environment, the company's market competitiveness, profit performance, and future business strategy and direction.
2、 Make good use of investment tools
Of course, for many office workers, they are tired almost every day. Where is the physical strength to do their homework? But don't forget Confucius once said, "if you want to do well, you must sharpen your tools first." Although there are many paid financial investment websites on the market to help you reorganize the fundamentals, chips and dividend policies of individual stocks, so as to facilitate the search for individual stocks, in fact, as long as you make good use of the app of opening securities companies, you can explore the treasure. Taking "Oriental Petrochemical (Taiwan) securities e index earnings" as an example, it not only provides the basic information, trends, news and diagnosis of individual stocks held by investors, but also presents information such as after hours chip distribution, entry and exit of securities companies, changes in Directors' and supervisors' holdings. Through these indicators, we can better understand the investment dynamics of other investors in the market. However, I suggest that you still have to take time to read the key points of the company's annual report in order to figure out the real value of an enterprise.
3、 Correct investment mentality
When you enter the stock market, you must strictly abide by the operation discipline and set the investment target reward. You can continue to hold until you reach it. After you reach it, you should make profits and do not be greedy! Of course, there will be times when the stock trend is not as good as expected, so investors must understand their maximum tolerance for losses, set the stop loss point, and don't let the stock price decline and the loss continue to expand in order to wait for a rebound!
Busy office workers might as well make good use of investment tools to make up for the dilemma of being unable to keep an eye on the market during working hours. There is a "warning setting" function in the app of Oriental Securities Corporation, which can determine the stop profit and stop loss in advance. Set the low point or high point through the app the day before, and you can go to work safely the next day without sneaking into the office.
Finally, I remind you to be the master of your own investment. If you want to make money in the stock market, you must personally spend time collecting information and know how to "sell stocks", especially "stop loss" is more important than stop profit! Every appearance is a new starting point. After falling into the bag, you can continue to invest with the earned funds. Although it is difficult to stop loss, remember! The stocks that can't be cut off may hurt you the most. You must never leave the stocks with large losses alone, otherwise the most extreme result may be that the company will go off the market and become wallpaper. Therefore, you'd rather move out the funds and have a chance to make a comeback in the future.
Note: the financial report is published once a quarter, within 45 days after the end of the first, second and third quarters of each fiscal year (before 5 / 15, 8 / 14 and 11 / 14), while the annual report is within 3 months after the end of each fiscal year (before 3 / 31), which can be queried at the public information Observatory of Taiwan Stock Exchange Corporation.
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In this era of anti inflation, investing in stocks is definitely a good way to increase passive income. However, since the third quarter of 2021, starting from the Evergrande crisis in China and the power cut-off without warning, Taiwan stocks have fallen more and rose less. I believe many people are flustered and do not know how to continue to operate calmly under the fluctuation of the stock market. Here are some suggestions:
1、 Do your homework and don't follow suit
When Xiaobai in the stock market just started, he generally liked to listen to others' opinions and even listen to postcards. He may have a sweet start, but in the end, he often became a helper for others to fry stocks. As the saying goes, "there is no free lunch in the world." In order to avoid the above situation, we should do our homework in advance, understand the basic concepts and common sense of the stock market, such as chips, K-line, etc., and spend time reading the annual report and financial report (note) of the investment target, so as to master the economic environment, the company's market competitiveness, profit performance, and future business strategy and direction.
2、 Make good use of investment tools
Of course, for many office workers, they are tired almost every day. Where is the physical strength to do their homework? But don't forget Confucius once said, "if you want to do well, you must sharpen your tools first." Although there are many paid financial investment websites on the market to help you reorganize the fundamentals, chips and dividend policies of individual stocks, so as to facilitate the search for individual stocks, in fact, as long as you make good use of the app of opening securities companies, you can explore the treasure. Taking "Oriental Petrochemical (Taiwan) securities e index earnings" as an example, it not only provides the basic information, trends, news and diagnosis of individual stocks held by investors, but also presents information such as after hours chip distribution, entry and exit of securities companies, changes in Directors' and supervisors' holdings. Through these indicators, we can better understand the investment dynamics of other investors in the market. However, I suggest that you still have to take time to read the key points of the company's annual report in order to figure out the real value of an enterprise.
3、 Correct investment mentality
When you enter the stock market, you must strictly abide by the operation discipline and set the investment target reward. You can continue to hold until you reach it. After you reach it, you should make profits and do not be greedy! Of course, there will be times when the stock trend is not as good as expected, so investors must understand their maximum tolerance for losses, set the stop loss point, and don't let the stock price decline and the loss continue to expand in order to wait for a rebound!
Busy office workers might as well make good use of investment tools to make up for the dilemma of being unable to keep an eye on the market during working hours. There is a "warning setting" function in the app of Oriental Securities Corporation, which can determine the stop profit and stop loss in advance. Set the low point or high point through the app the day before, and you can go to work safely the next day without sneaking into the office.
Finally, I remind you to be the master of your own investment. If you want to make money in the stock market, you must personally spend time collecting information and know how to "sell stocks", especially "stop loss" is more important than stop profit! Every appearance is a new starting point. After falling into the bag, you can continue to invest with the earned funds. Although it is difficult to stop loss, remember! The stocks that can't be cut off may hurt you the most. You must never leave the stocks with large losses alone, otherwise the most extreme result may be that the company will go off the market and become wallpaper. Therefore, you'd rather move out the funds and have a chance to make a comeback in the future.
Note: the financial report is published once a quarter, within 45 days after the end of the first, second and third quarters of each fiscal year (before 5 / 15, 8 / 14 and 11 / 14), while the annual report is within 3 months after the end of each fiscal year (before 3 / 31), which can be queried at the public information Observatory of Taiwan Stock Exchange Corporation.
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