Truly formidable investors, throughout their lives, only invest in one stock:

This notion is common among many people. Of course, investing in only one stock is not just a method, but an investment philosophy.

For retail investors, it can almost be described as "invincible in battle, conquering all without fail," with gains in every engagement. To put it mildly, even if they are trapped, it is only a shallow trap.

The benefits of investing in only one stock are numerous: firstly, it is worry-free. Most retail investors are amateur stock traders who are already busy with their daily work and family or workplace matters. Adding the consideration of stocks can inevitably lead to anxiety and mistakes. Holding just one stock is much more worry-free.

Secondly, it saves time. Whether it is entering or exiting the market, it can be done in a minute. Thirdly, it conserves energy. There are currently about 3,600 stocks listed for trading in the Shanghai and Shenzhen stock markets. If you consider each stock for 5 minutes, it would take at least 125 hours, which would waste a lot of personal energy. It is likely that one's hair would turn white without even figuring out the rationale behind it.

The stock you choose to invest in must be a blue-chip industry leader with good performance or a small-cap high-performing stock with good growth potential. Once selected, regardless of the bull or bear market, you must strengthen your attention to it and study its fundamentals and technical aspects consistently, day in and day out, over a decade. In this way, the basic secondary high and low points will be in your heart, making it difficult not to win.

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Investing in only one stock, regardless of the price, should never be done with a full position. The best trading method is to buy 25% of your funds first. If it rises by more than 30%, sell it. If it falls by 50%, add another 50% of the remaining funds. If it continues to fall, add more according to the proportion. Exchange time for space until you make a profit.

Investing in only one stock throughout one's life is easy to say but hard to persist in. Most people cannot do it. Those who can, I believe, are not far from success.

How to Master One StockStep One: Adopt the right mindset and choose the right direction; otherwise, a single mistake can lead to a total loss. Logical thinking is also part of the academic analysis school. Understanding the market economy situation and looking forward to the future prospects, who will be the leader? Who has value? Who can sustain? Your choice is just a fleeting thought.

Step Two: Choose the right target for lifelong benefits. Investing in stocks is equivalent to investing in a company. It is essential to understand the background of the listed company, its managers, cash flow, product market position, and prospects before participating. Otherwise, do not get involved lightly. To increase your assets, you must double them and keep doubling, ensuring continuous growth. Focus your energy and do not spread your net too wide.

Step Three: The great opportunities in the stock market are waiting to be seized. Timing is more important than stock selection. Opportunities are not available every day, and once they come, they must not be missed. Otherwise, how can we talk about undervalued investments and value investing? Speculation is only for a moment and is not something everyone can do.

Step Four: Hold stocks in an upward trend and hold cash in a downward trend. When you find a stock you like, buy it at a low price and do not sell it until you reach the desired price. Even if the market changes, there will be prior signs. Control the chips in your hand according to the trend, and what else is there to worry about?

Step Five: It sounds simple, but it is difficult to do. Establishing principles is not difficult. There are many philosophies, philosophical stories, and great truths in the world, but why are the people who achieve them a minority? Because only 3% of successful people always exist, and that is because many people do not have their own principles and are unwilling to do so. Often, repeating many simple and effective things is more effective.

How to simplify, refine, and make complex things efficient and popular is a realm that a true investment master pursues, and most masters only focus on one stock. However, the premise is not to work for brokers. Simply put: frequent operations, chasing rises and killing falls, acting on rumors, etc., these investors work for brokers all year round, and the handling fees exceed their own profits at the end of the year, not to mention your time and energy costs.

Spend your life doing one stock: buy with 25% of the funds, sell when it rises by 30%, and buy again when it falls by 50% - Pyramid Buying Method

What is the Pyramid Buying Method?

The Pyramid Buying Method is one of the more popular position-building operations worldwide. It is a long-term investment concept, and its characteristic is to keep the average price of the purchased investment varieties at the second-lowest price.If a stock has a long-term positive trend, when the stock price falls, build a position in a pyramid shape, that is, the lower the price, the larger the number of positions built. When the stock price returns to the normal track, it will naturally make a profit. As shown in the following figure:

Conditions suitable for pyramid position building in stocks:

1. It must fall to the previous bottom to build a position

Because the previous bottom often has a supporting effect, many stocks can rebound quickly at the previous bottom, and profits can be made on the second or third day.

2. Use the CCI oversold stock selection

Meet the following four technical indicators:

① CCI falls below -200;

② The J value of KDJ is negative;

③ The closing price of the stock is at the lower track of BOLL or has already broken through the lower track;④ The closing price has a discount of more than 10% (or close to 10%) compared to the 5-day moving average.

3. Choose the stock with the lowest price in the Shanghai and Shenzhen A-share market.

Take some time to wait patiently, and sell when you have a 2% profit (after deducting the transaction fee).

How to use the pyramid position method to buy in batches?

1. Positive pyramid buying

The bottom of the positive pyramid is wide and becomes narrower as it goes up. When the index or stock price is on the rise, the funds bought in the early stage are larger, and the funds bought later gradually decrease, thereby reducing the investment risk. As shown in the following figure:

The advantage of this method of buying less and less is:

Buy more at a low price, buy less at a high price. Although it is not as profitable as buying all at once, it can reduce the risk brought by the decline of the stock price.

For example: When a stock price is at 10 yuan, buy with 50% of the funds for the first time. When the price rises by 10%, buy with 30% of the funds, and so on, continue to add purchases in the rise until the position is completed at a certain price. The positive pyramid position method is suitable for stocks in a bull market or in an upward channel, but not suitable for the end of the bull market.2. Inverted Pyramid Buying Strategy

Contrary to the regular pyramid buying method, the inverted pyramid approach involves initially investing a smaller amount of capital and gradually increasing the investment as you go along, thereby reducing the overall investment risk. See the diagram below:

The advantage of this "buy more as the price goes up" inverted pyramid strategy is that you buy less at high prices and more at low prices, which helps to lower the average cost of your position through staggered purchases. This eliminates the worry of not having enough capital when a stock presents a buying opportunity.

During a declining market or stock price, you continue to buy with an increasing proportion of your capital until you have fully built your position at the low point. This allows you to continuously lower your cost basis, and once the market starts to improve, you have room for profit.

What is the core of the pyramid building method?

Whether it's the regular pyramid buying or the inverted pyramid buying, the crucial first step is to determine how to divide your initial capital into equal parts and how to build your position in batches.

In general market conditions, dividing your capital into 1/16 is the most secure approach. You invest 1 part of your capital for the first purchase, and if the price rebounds by about 2% (after deducting a 1% transaction fee), you sell.

As long as the stock rebounds by about 2% from your average cost basis (after deducting a 1% transaction fee), you can sell. Alternatively, you can divide your capital into 1/8, which allows you to replenish your position twice, doubling your potential profit.

In the event of a sharp market downturn, you can divide your capital into 1/32, enabling you to replenish your position four times and withstand a 40% drop in the market. Even if you encounter a stock that has halved in value, you won't be afraid.The 7 Most Classic Bottom K-Line Combination Patterns in History

Doji

A pattern where the opening and closing prices are very close, this is one of the most important single K-line patterns. It implies that the battle between bulls and bears is particularly fierce, or the supply and demand situation is balanced. It is also a signal that an upward trend may come to an end.

Another variant, the gravestone doji, has both the opening and closing prices near the daily low. Although this pattern can also appear at the bottom, it is more often identified at high levels.

Abandoned Baby Pattern

A very rare combination of three K-lines. A K-line with a long body is followed by a doji with an upward gap, and then a reverse control body K-line is formed.

This is a typical reversal pattern and a variant of the "island reversal."

Envelope PatternAfter a series of rising candlestick lines, a long bearish candle that gaps up engulfs several previous candles. The gap up of the bearish candle indicates that the last consensus of the bulls is mercilessly swallowed by the counterattack of the bears.

The West also regards this pattern as a key reversal day.

Hammer Pattern

It is an important bottom pattern, with a short body and a very long lower shadow, which can even be twice as long as the body.

In many cases, the pattern of "golden needle probing the bottom" has "pierced" the short-term or long-term bottom of the market.

Hanging Man Pattern

The pattern is the opposite of the hammer pattern, but it appears at the end of a series of rises. The lower shadow suggests that the bears have started to exert force, although the end of the day recovers, the bears have heard the charge of the vanguard forces.The confirmation of the two patterns mentioned above requires a reversal in the market trend the following day.

Engulfing Pattern

After a long-bodied candlestick closes, it is immediately followed by a small candlestick within the body. This pattern is less reliable than the Hanging Man or the Envelope Pattern, but it also tends to appear at the top or bottom of market trends.

Morning Star and Evening Star

Similar to the Abandoned Baby pattern combination, but the middle top or bottom small candlestick body is slightly longer, and the gap the following day may not necessarily leave a gap. The significance is similar to the Abandoned Baby, indicating a market reversal.

Most retail investors in the stock market are repeatedly defeated in battles, constantly chasing rising prices and cutting losses, falling into an endless vicious cycle, and ultimately leaving the market with great disappointment and substantial losses. Experienced retail investors summarize the history of stock trading with blood and tears, and summarize the nine major pitfalls of stock trading that are bound to lose, for learning and reference:

1. Rushing to snap up rebounds after a stock market crash

After a sharp rise or fall, the stock market often experiences a strong rebound. Therefore, when the stock market falls sharply, some people often do not analyze the reasons for the sudden changes in the market, but rush into the market to snap up the rebound.They would also say: Hurry up and get in to pick up bargains, there must be a big reversal after a sharp drop, and you can make money in one or two days.

2. Impulsive, buying stocks with good performance as soon as they hear about it

"Buying stocks depends on the fundamentals," more investors are no longer satisfied with listening to news to speculate on stocks or buying stocks by looking at technical lines, but hope to invest more rationally. Understanding the fundamentals of a stock when selecting stocks is one of the important tasks. However, for non-professional individual investors, understanding the fundamentals is not as simple as imagined.

3. Long-term holding can definitely make money

In stock trading, short-term is silver, long-term is gold, and the opportunities for long-term investment are often greater than short-term speculation. That is to say, the strategy of holding the right stock is often more profitable than frequent in and out. However, there are also many stock investors around us who think: although the short-term stock price has fallen, it will definitely rise again. As long as you hold on for a long time, there will always be a day to make money.

4. Prefer a small drop rather than a long-term trap

Every day, staring at the rise and fall of the stock market, as soon as the stock price falls slightly, immediately sell the stock. Although this approach seems to be able to avoid the risk of being deeply trapped, investors using this operation method are difficult to obtain the opportunity to make a profit, constantly cutting meat operations, increasing the cost of investment, and may also continuously kill "outstanding stocks", missing the investment opportunity.

5. Heavy position in strong stocks

Strong stocks have a strong trend, often rising in one breath for several months, and those who catch it are excited, and those who miss it are annoyed. When a certain industry or type of stock rises sharply, and our eyes and ears are filled with various information about strong stocks, many people find it difficult to resist the temptation. In order to earn more, some people even risk all their funds on strong stocks. However, strong stocks rise quickly and fall just as quickly. If you fail to withdraw in time, the loss will be astonishing.

6. Don't buy high-priced stocksMany stock investors are afraid of buying high-priced stocks. They feel that a stock that is priced at 50 yuan or even higher is too expensive to touch.

Firstly, they think that their own capital is small, and the high stock price means they can buy too few shares, which makes the probability of making money small.

Secondly, they believe that high-priced stocks have already risen so much, and if they fall, they will go down by several yuan or even tens of yuan, which is much more risky than low-priced stocks.

7. Frequent trading misses the "big dark horse"

Some retail investors are always happy to frequently trade in the short term, hoping to gain the difference in profits. However, doing so often makes it easy to "ride the dark horse but not win in the end", and in the end, they still cannot escape the harsh reality of losing money.

8. Listening to news

People who entered the market in a hot bull market and have made a lot of profits by listening to news may not be able to accept this advice at all. Especially some stock investors who have been trading directly in the exchange for a long time, almost in addition to the news, they do not consider other methods. What is more absurd is that even if they lose money after listening to the news, they do not think that this method of listening to the news is wrong, but think that the news source is not accurate enough, and the next time they will pursue more accurate news, rather than giving up this wrong method.

9. Buying more stocks can diversify investment risks

A considerable number of stock investors firmly implement the concept of diversified investment. They have not much capital, but the number of stocks they invest in is not small. Often the risk is not diversified, and the result is a loss. Moreover, many investors still do not understand what the real meaning of diversified investment is, and buying a lot of stocks in the same industry does not play the role of diversified investment.Do not mistake frequent trading for hard work.

Stock trading requires the most effort, but more often than not, it is not about striving to do more and to seize every opportunity, but rather about striving to restrain and wait, reducing the impulse to trade.

Traders' frequent trading either comes from the impulse to seek the excitement of buying and selling, or from a strong desire for profit. Every day, and even every moment, they are entering the market to trade. If they don't have a position in their warehouse for a while, they feel uneasy. This seems like hard work, but always feeling that there are opportunities is actually not having opportunities, because the market has its own rhythm of movement, which will not change because of anyone's existence, and no one can keep up with all the fluctuations. This kind of trading that does not pay attention to trading opportunities is just a futile waste of energy and money. Sometimes, unknown profits are like a trap waiting for traders to make mistakes. It looks beautiful, but if you are not careful, you will ignore the risks behind it.

Trading risks stem from the randomness of price trends, and this randomness also determines that traders have no way to clearly identify which are trading opportunities and which are trading traps. If viewed from this perspective, before entering each trade, it is unknown whether it will be profitable or not, as if it has fallen into a dead end with no exit. Many traders may wonder, if that's the case, what is the necessity of trading?

This is also where most traders find trading difficult. In fact, although traders cannot actively grasp the identification of opportunities and the space of price fluctuations, the definition of risks can be completely determined by themselves. At both ends of the trade, one is profit and the other is loss. As long as you can grasp the loss, the other end of profit can be found according to the map. Many traders have reversed this order, often only staring at the illusory potential profits, but ignoring the real possible risks. It is this phenomenon that leads traders to see everything as an opportunity, and when the real opportunity comes, they have lost the ability to enter the market.

The market is never secretive. Before starting, it will give every trader who pays attention to it a clear entry signal, but most traders cannot grasp it. So seeing is not equal to doing. The difficulty of trading lies in always maintaining the identification of illusions and patiently waiting for the truth, reducing some unnecessary trades. Before you think clearly about how much risk you can bear and accept, do not easily enter the market, which can make it easier for you to wait for the emergence of trading opportunities. Cherish every time you enter the market, just like a warrior cherishes every bullet.

Without experiencing the cold to the bone, how can you get the fragrance of plum blossoms? Without tasting the vinegar and ink of the world, how can you know the sour and sweet of life? All those who have a thorough understanding have experienced the incurable, breaking and establishing, dawning and rebirth, phoenix nirvana, and living towards death. If you are at the end of your rope, then you will be as powerful as a bamboo shoot breaking through the earth!