Editor's Note
"The masters are in the folk, and the folk are really masters". Adhering to the principle of looking for lighthouses to illuminate the way forward for investors, we will embark on the journey of digging up folk ox men and present the real experience to everyone who loves investment!
There is no shortcut for investment itself, but we believe that with more people walking, the mud trampled by previous generations can also become the path of future generations; The splendor seen by predecessors can also shine in the eyes of latecomers.
In order to explore the investment philosophy and experience of these grassroots firm experts, Ping An Securities and the Daily Economic News jointly launched an interview column called "Firm Expert - A-share Hero" to share the investment experience of these experts and present a reference path for ordinary investors to provide readers with a feast.
A Du, a firm offer expert: a young "old investor" with 8 years of investment experience
A Du (pseudonym), a 27 year old male from Sichuan. In 2016, when he was just over 20 years old, he entered the market at Ping An Securities with 10000 yuan of pocket money and gradually loved it. With a desire for dreams, eight years later, he has grown slowly from a real "white man" to a young "old investor". His account assets have also continued to make profits from the initial 10000 yuan, with a total assets of more than one million, and he has his own investment system. His growth path may be that of every investor. In Adu's words: "The stock market has brought me not only money, but also reshaped my understanding of the world."
Initial investment experience: stock market Xiaobai's "painful understanding"
Adu's first experience of A-share was not pleasant. Shortly after opening an account at the end of 2015, he transferred 10000 yuan of pocket money into the account, and soon the warehouse was full. "At that time, I didn't even know T+1, and I was pure white." Adu laughed at himself. "After I bought the first stock, I wanted to sell it before the closing. I found that I could not sell it. Then I checked the trading system, and I knew that A shares were T+1."
On January 4, 2016, Adu experienced his first investment in Waterloo in his life, and his stocks also fell continuously. When he finally sold, he had lost more than 30%.
"Fortunately, we didn't have much money at that time, but we were in a bad mood." Adu recalled the scene with great sadness. "At this time, we can't tell others that we have to shoulder the burden of the past. Every profitable and successful investor must have encountered this and that loss on the way to growth, which is a very reasonable thing. The key is to resume trading, constantly improve our understanding and improve our investment system."
Exploring Learning: Understanding the Way from the Dilemma Reversal
During the period from 2016 to 2020, Adu graduated, entered the society, slowly accumulated some savings by working as a part-time worker, and also continued to in-depth study various knowledge of the stock market. "But for a long time, I lost money," Adu said frankly.
Emotionally, psychological frustration is inevitable. "Because from the perspective of investment, the pleasure brought by logical verification is the most important, which means the improvement of self cognition, making money is only the result of logical verification, and logical verification is only the result of cognitive improvement. But the loss obviously means that my logic has not been recognized by the market, and my cognition is also relatively limited, which is the most frustrating reason for me.", With the deepening knowledge of stocks, Adu also realized that for ordinary people, stocks are an important carrier to meet financial needs.
"What really opened my mind was the decapitation of a liquor company in 2021," Adu recalled. "At that time, I remember that the company also had a lot of arguments. However, in May 2021, the company solved all the problems that had previously been ST, and successfully removed its hat. Its big rise made me realize that in the market, if we can achieve 'dilemma reversal', it may bring excess returns."
"But we must be cautious when screening stocks that are facing difficulties," Adu said. "First of all, there should be no gambler mentality. Don't look at companies with very poor performance or poor asset quality. Second, pay attention to the major changes in the company's main business brought about by asset restructuring or changes in industry prosperity. Third, remember not to catch up."
After five years of "tuition" to the market, from 2021 to 2023, Adu finally began to make steady profits. By the end of 2023, the market value of the account exceeded one million! After eight years of persistence, in the process of constantly confirming and overthrowing his own logic, Adu's cognitive system has been reflected in the results of income. "Eight years is a long time. For many people, this is half a youth. After losing money, find the wrong place bit by bit, pause trading for a period of time, and keep your brain in a calm state, so that you can change from experience to experience. I have experienced insomnia in the middle of the night when losing money, and of course, I have experienced insomnia when making profits. I believe that many shareholders have come here in this way. Those who have not yet found a profit model may be more in the state of moving forward, not stopping or slowing down. It's like running. If a person sprints at the beginning, he will not be the most likely champion; The champion must be slow when it is time to be slow, and he will not spare any effort when it is time to sprint. The same is true of investment. "
Look at the market in the middle of a fall: you can see it more clearly outside
During this period, Adu's life has also undergone tremendous changes. He said goodbye to the workplace and made investments full-time.
Although he no longer went to rush to the morning and evening peak, and there was no urgency to work overtime at any time, he still lived a very full day in the rental house in Chengdu. Watching, re checking, trading and operating are fun every day.
"But in fact, this situation may only be a short experience of my life," Adu said. "I regard it as a holiday to recharge my batteries and will continue to return to the workplace in the future."
With more time, the trading frequency of Adu has become higher. "My position is divided into two parts, one is holding distressed contrarian stocks in the medium term, and the other is used for short-term trading. But I don't like to chase up and kill down. I cultivate a sense of the market through short-term trading with light positions, and also cultivate my habit of strictly enforcing trading discipline."
For the short term and the long term, Adu does not think who is right and who is wrong. "The model comes from the market, and the market must be right, so the model must also be right. There are many long-term losses, and many short-term losses; there are many short-term losses, but there are many more long-term losses. When we understand the short term and the long term, we should not take the long term as a value investment and the short term as a speculation. When we do the short term, we will also make judgments based on fundamentals and take financial indicators as a reference. This is actually an important judgment information of value investment. In fact, the loss of money is not caused by the selected mode in essence. In the final analysis, it is a cognitive problem. If everyone can make money with it for a long time, no one will do short-term business. Therefore, the core of stable profitability is to enhance cognition, whether it is about the market, our own cognition, or the macro environment. "
He specifically shared the discipline and cognition of short-term trading: short-term trading must have a good market environment. If it is a period of general decline, short-term operations are too difficult, and ultra short-term trading needs to closely follow the trend of large funds. The timing of buying and selling needs to be controlled accurately, and the decline is not hard to resist, and the rise is not greedy.
As for how to select stocks for short-term trading, Adu pointed out that the market style changed very quickly, and ordinary investors took short positions. Remember the word "follow", closely follow the market hot spots, and then select the leading stocks in the hot sectors. "Each individual stock has different stock characteristics. For the same plate, the same round of market of leading stocks may even increase 50 percent more than other individual stocks. Therefore, intervention will involve leading stocks, fast in and fast out."
At the beginning of this year, Adu retreated a lot. "When he retreated to 20%, he was in a bad mood, so he went to eat with friends. If he couldn't eat twice, he went to bed on time. If he couldn't sleep for 8 hours, he would sleep for 10 hours. Miraculously, I gradually found that I was in good condition after being away from the market for a short time. Then in February, the market rebounded, and I added positions again. In the annual report season, I added positions in high dividend stocks on a short-term basis. "
As a result, Adu came to the conclusion that the market is changing rapidly, which makes people nervous. Sometimes, taking a break is one of the ways to invest. "After all, investment is a long-term thing, right? Sometimes you can see the market more clearly when you leave."
Focus on the future: grasp the investment opportunities of A-share
When it comes to whether A-share will usher in a bull market in 2024, Adu is optimistic: "No matter how the market changes, it will not affect the position of high-quality valuation in China's market. I have been in the stock market for seven years, and I am also an old investor. I believe A-share will usher in a bull market."
As for which sectors are more optimistic, Adu said that in addition to the dilemma reversal, he also pays more attention to domestic substitution and independent research and development logic. "Both substitution rate and penetration rate are growth stock investments in essence, and chips, semiconductors, etc. are my focus; in addition, with the arrival of the downward cycle of interest rates, the high dividend sector may become a better alternative to traditional financial management, and I will continue to pay attention."
At the end of the interview, Adu also expressed his blessing to millions of investors like him, as well as Ping An Securities.
"I hope the stock market will be Changhong in 2024; I hope I can buy houses in Chengdu in the past two years; I hope tens of thousands of investors like me can make money in the market. Thanks to the investment advisers of Ping An Securities, I will respond to any demand in a timely manner. I hope that Ping An Securities will become better and better!"
