Who are our enemies? Who are our friends? This question is the first question of the revolution. The basic reason for the ineffectiveness of all the revolutionary struggles in China in the past was that it could not unite real friends in order to attack real enemies.

Those who are well versed in the history of the party know that this is a well-known thesis put forward by a generation of great men, and it has a strong guiding significance for the Chinese revolution.

Whether it is a revolutionary struggle or a work or undertaking in a unit, it is necessary to clearly distinguish what is the most important issue and the first issue.

At the same time, stock trading, or stock market investment, should also distinguish what is the most important? Who came first?

Many people must think that in the stock market, stock selection is the number one priority.

Today is February 11, 2023 is Saturday, Yuansheng was idle at home, and received a call from Zhang Sheng, who asked this question.

Yuansheng said: Is stock selection the first place? Let's start with a story:

After the Autumn Harvest Uprising in 1927, when the Red Army first went to Jinggangshan, there were only a few hundred people, and by the beginning of the fifth anti-encirclement campaign, the Central Red Army had grown to about 100,000 people. It can be said that the process from a few hundred to 100,000 people is the rising stage of the Central Red Army, and many famous Red Army generals such as President Peng and Mr. Lin have been created at this stage. At this stage, many famous Red Army generals continued to win battles and became famous.

After the failure of the fifth anti-encirclement campaign, the Central Red Army was forced to shift its strategy (known as the Long March), from 86,000 at the beginning to the end of the Long March in October 1936, the Central Red Army was only about 10,000 people. The period from the five anti-encirclement campaigns to the end of the Long March was a difficult period for the Red Army, and even the most famous generals Peng, Lin, and Su could only retreat while fighting........... This phase can be called the retreat (descent) phase.

Yuansheng went on to say: Open the daily K-line of CATL, we will see that it was 105.01 yuan on March 23, 2020, and then continued to rise slowly to 692 yuan on December 3, 2021. This process is the ascending stage of the CATL era. Whoever buys it in this ascendant phase will easily make money. You can earn money by guarding, and the longer you keep it, the more you make money.

Let's take a look at another case: on November 7, 2022, Huaxia Ophthalmology was listed, and the transaction return that everyone could see in the evening showed that the institution bought 428 million yuan. It can be said that a small and medium-cap stock with a circulation of only 56.34 million shares, it is very rare for institutions to buy so many on the first day, so the new speculators are very excited and buy them on the second day......... As a result, Huaxia Ophthalmology fell from 74.77 yuan to 55.88 yuan before bottoming out.

It took 14 trading days for $74.77 to fall to $55.80. This process is the descending channel, and in the descending channel, whoever buys is very dangerous. To put it bluntly, at this stage, whoever buys it will take whomever it wants. Of course, in this process, maybe one day, or two days will rise, but it cannot change the pattern that it is generally down. This process is equivalent to the process of the Red Army's Long March, and Lin Zong and others also won local battles, but they could not change the pattern of the Red Army's overall need to retreat.

Huaxia Ophthalmology started from 55.80 yuan on November 28, 2022 to 90 yuan on January 20, 2023, which is the rising stage. At this stage, it is easier for anyone to buy Huaxia Ophthalmology to make money, even if it is temporarily set, it can be earned by guarding.

Zhang Sheng lamented on the phone: "If the same stock is bought at different stages, the fate will be different." It shows that it is too important to look at the general trend and the overall situation, which is the first problem of stock speculation! ”

Yuansheng: "The market has the general trend of the broader market, for example, the Shanghai Composite Index was 2,437 points on November 20, 2014, and 5,178 points on June 12, 2015. This process is the upward phase of the broader market, in which it is easy to pick stocks and make money. ”

"The plate also has the general trend of the plate, and at a certain stage, the plate is rising, and it is bold to fight; At a certain stage, the plate is down, away from it. Or if you are unfortunate enough to buy it, you can retreat first, wait for it to really go to the end, and then buy it back and enjoy its rising phase. Yuansheng said.

Zhang Sheng said: "No wonder there is such a famous saying in the stock market: look at the general trend and make a lot of money!" ”

Yuansheng: "Yes, in the rising sector, buy the most bullish stocks to earn the fastest and the most!" ”

Zhang Sheng: "I've learned useful things again!" In the past, I always thought that stock selection came first. I always think: if you choose the right stocks, you can make money. Now I understand: it is too difficult to go against the general trend, for example, on the second day of listing, I bought Huaxia Ophthalmology for 74 yuan, and the process of retreating all the way to 55.8 yuan was too uncomfortable. If you speculate on stocks for a long time, constantly covered, and full of positions, the pressure must be very high, and it is easy to affect your health....... In this way, even if you can make money by keeping it for a long time, the cost is too great and not cost-effective. ”

Yuansheng: "Yes, so, smart money, smart people, try to choose stocks in the rising stage and avoid stocks in the falling stage." In this way, it is easy to make money by trading stocks. ”

Zhang Sheng: "I have a question, the market has the potential of the market, the plate has the potential of the plate, and the individual stock has the potential of the individual stock, which is too difficult to judge in advance. How to deal with it or choose? ”

Yuansheng: "Making money is one of the two most difficult things in the world, and making money in the stock market is even more difficult. In fact, in any industry, it is very difficult for you to excel, for example, 70% of people can sing, but there is a famous singer who sings a song and gets 600,000 yuan, can we? There are executives whose annual income is more than 100 million yuan, what is our annual income? Some people were admitted to MIT, Harvard, Tsinghua University, ...... What university did we get into? Therefore, in any industry, everyone can only do things that suit their abilities. ”

"In the stock market, there are many opportunities on the surface, there are dozens of stocks with hundreds of daily limits, some stocks are very bullish, 99% of shareholders can't make money, it's normal, just like 99.99% of people can't sing a song to earn 600,000 yuan, and can't earn hundreds of millions of yuan or tens of millions of yuan annually. Most people have studied hard for 16 years through 6 years of primary school, 6 years of middle school, and 4 years of college, and their annual income is only tens of thousands of yuan, more than 100,000 yuan, which is the fate of most people, and it is difficult to change. It's a competition in life, that's the result, and most people can only accept it.

"The competition in the stock market is more intense because it's a big competition of 210 million stockholders, how much time do you spend picking stocks? Learn the ........ of candlesticks Look at the helmsman in his stock trading career, it takes 18 hours a day to look at or review stocks, how many hours do you spend? Everyone's comprehension, summarization, and execution......... It's all different, and the result is naturally different. Yuansheng said.

Zhang Sheng: "Yes, you have to be willing to be willing, and you have to give up to get it!" Whether it is studying, trading stocks, or working, you need to be willing to spend time and grasp the key points in order to excel; At the same time, you must be willing to give up stocks that you can't understand, and wait for stocks that you can understand before buying. Today's call with you made me understand: in the stock market, the importance of looking at the general trend is the first place. This general trend has the general trend of the market, the general trend of the plate, and the general trend of individual stocks......... Stock selection is the second place! Thank you, Yuansheng, for letting me learn something useful again! ”

Then the two talked about some other stock market ............

(To be continued)