Chapter 11 Chapter 11 "Li Daitao Stiffness" and Loss Control

In the stock market: No matter whether you are a novice or a master, there is no general who is always victorious.Even if you eat the old "Shantou" in the stock market that has experienced many battles, it is inevitable that you will sometimes miss it.A big name in the Shenzhen stock market has nearly one million funds on hand. He once revealed to reporters that when the Shenzhen stock market experienced a low tide in 1991, he lost hundreds of thousands at once.Looking at those tycoons in the international stock market, there is no one who has not come all the way against the wind and took risks.It can be seen that there is no permanent winner in the stock market. Whoever devotes himself to the stock industry will suffer some losses, but when and how much they lose are different from each other.

Since losses are unavoidable, the concern of every stockholder is how to minimize losses and preserve strength in order to make a comeback.Here, we invite you to look at an example: In April 1992, the Youth League Committee of Nanjing Audit Institute held a "simulated stock investment competition", simulating six trading days in the stock spot market with two months apart.All the students in the school actively participated, and every three people formed a group.Among them, Qiu Weichuang, Qiang Wujun and Wang Mingwu, students majoring in auditing at level 90, are the most eye-catching.

In the third transaction, the three entrusted their classmate Lu Jun to sell 800 shares of their shareholder stocks at a price of no less than 120 yuan per share.When Lu Jun entered the exchange, he found that the price could not be sold at all, so he hurriedly told the news to Qiu Weichuang and the other three. Over the past few days, the three of them have collected all kinds of information, such as the situation in the Gulf, most-favored-nation treatment for China, the "El Nino" phenomenon, volcanic eruptions, the Three Gorges Project, etc.; the microscopic information includes backward packaging, ambiguous financial attitudes towards appropriation and advertising, etc. Wait.They listened to Xiao Lu's feedback, and based on the information on the stock market, they made a decisive decision to resolutely sell the Huandong stock. They couldn't sell it at 120 yuan, but they could do it at 110 or 100 yuan.

Xiaoqiu and others sold Huandong stock, returned the cash, and made a small profit. In the end, they simply sold all the 100 Huandong shares in hand at a price of 80 yuan per share.After that, there was news that the annual profit of Huandong Company had negative growth, and the result was self-evident.They used the returned cash to buy 500 shares of Honghe stock with a bullish market at 107 yuan slightly higher than the face value; The entrusted price is 10 to 20 yuan to buy part; the stock of Jinling Company that they have been buying all the time, after the price fell, they sold a small amount of high price before the market closed, which raised the closing price of each share by 30 yuan, and they held 800 shares, and gained another 2.4 ten thousand yuan.

In this way, the three investors led by Xiaoqiu made a profit of 436,100 yuan with stocks with a face value of 500,000 yuan and cash of 200,000 yuan, ranking first in the stock market. Although this example is a simulation experiment, not a real stock market fight, it can also inspire people.The key to Xiaoqiu's success lies in: they were able to judge the situation, sell the inferior stocks in their hands in a timely manner, and maintain the overall success with partial losses. The phrase "Li Dai Peach Rigid" comes from an ancient Yuefu poem: "Peach grows on the well, plum tree grows next to the peach, insects come to eat the peach root, plum tree replaces peach stiff, tree itself replaces each other, brothers forget each other." Later, this sentence It was included in "Thirty-Six Strategies" and became the fifth strategy in the second set of enemy battle strategies.The book said: "There is bound to be loss, and the loss of yin is to benefit yang." In terms of military strategy, it means that when the war situation develops to the point where losses are inevitable, local losses must be discarded in exchange for overall victory.

In the society, there are many criminal leaders who employ substitutes, that is, they hire someone to preside over the criminal business at a high price, and they hide behind the scenes to manipulate. A fine, or imprisonment, or even going to the execution ground, can also be weighed to make him die without thinking about it. It seems that there must be a special relationship between the "perpetrator" and the "surrogate".People love themselves, who would sacrifice their interests in vain to help others?Not to mention taking life as a joke?The ancients valued righteousness, while today's people value wealth, and some people value love. It can be regarded as a new and unique formula.The famous "Zhao's Orphan" story in the Spring and Autumn Period is an example.

There was a family of ministers in the State of Jin surnamed Zhao. From Zhao Shuai, Zhao Dun to Zhao Shuo and Zhao Tong, they had been loyal and assisted for generations. The king of the State of Jin had a very high prestige.Unexpectedly, it aroused the hatred of Tu Anjia, a treacherous minister in the court.He often falsely accused the Zhao family in front of the monarch.At this time, Jin Jinggong was also worried about the prosperity of the Zhao family and his high achievements, so he listened to Tu Anjia's slander, charged him with crimes, and ransacked the whole family of the Zhao family to eradicate the roots.

But at this time, Zhao Shuo's wife gave birth to a baby boy, named Zhao Wu. Cheng Ying and Gongsun Chujiu, two disciples of the Zhao family, rescued him desperately and hid him in Shouyang Mountain.When Tu Anjia heard that the baby boy was missing, he immediately offered a reward of 1,000 taels of gold to capture the orphan of the Zhao family, causing widespread panic. Gongsun Chu saw that there was a lot of wind outside, and he was afraid that the baby would not be safe, so he discussed with Cheng Ying to find a recently born baby, pretending to be an orphan of the Zhao family, and let him carry him to the mountains to hide. An Jia searched for fake ones, and the real orphans would no longer be threatened.Cheng Ying had no choice but to follow the plan.

When Tu Werjia got the news of the orphan, he immediately took people to search for it himself. He killed Gongsun Chujiu and the fake orphan, so he was relieved.Cheng Ying took advantage of the slack inspection and took Zhao Wu to flee to another country and live in seclusion. Fifteen years later, Duke Jin Dao came to the throne, and some people in the court wronged Zhao's family in front of him. Duke Jin Dao wanted to take this opportunity to destroy Tu Anjia's power, so he sent someone to find Cheng Yao and Zhao Wu, and granted Zhao Wu Xue is wronged.Tu Anjia's family was killed, and the case of Zhao's legacy came to light.This is the story of "Li Daitao is stiff, Cheng Ying rescues the orphan".

Cheng Yingcheng became the benefactor of the Zhao family because of the method of "Li Dai Tao Zong". Similarly, in today's era, "Li Dai Tao Zong" is applied to the stock industry, which can still play a role in helping the poor.As mentioned above, when stock investors buy a certain stock in the market, they hope that the operating conditions of the issuing company of this stock will be better than in previous years, so that they can get more dividends or hope that the price of this stock will increase rapidly. Rise in order to sell at an appropriate price to obtain a larger profit.No investor buys stocks with the hope of losing money.However, the operating conditions of the stock market and the changes in the stock market price are not affected by the will of individual investors, and often change in the opposite direction with the wishes of investors.How to deal with this situation?You may wish to try the following methods:

When you find that the price of the stock you bought changes in the opposite direction and continues to fall, you should immediately sell all such stocks in your hand to minimize the loss.Then withdraw the funds to invest in other types of stocks, in order to use the profits from other stock trading to make up for the losses on this type of stocks.This is to exchange partial losses for overall benefits - "Li Daitaoji".This method has a wide range of applicability, especially suitable for investors who are new to the market, have no experience in the stock market, are not familiar with technical analysis skills, and have little capital, because they cannot clearly determine whether the stock price decline is a general trend or a small trend, and they have no ability to bear it. Too much investment risk. Although this method of operation is simple, everyone needs to pay attention to it when using it. The key lies in the word "decisive".Once you find that the momentum is wrong, throw it out immediately, and you must not look forward and backward and procrastinate.Because, while you are on the sidelines, your losses are expanding.For example, Zhang San, Li Si, and Wang Wu all bought 1,000 shares when the price of the 3 stock was 40 yuan. Although all three of them were optimistic about the stock market, the situation suddenly changed. Instead of rising, the price of the 3 stock began to rise. fall.Zhang San found that the sign was wrong, and he quickly sold it when it fell to 30 yuan, so he lost 10,000 yuan; Li Si also found that the sign was wrong, but wanted to take another look. The possibility of rising, he sold it at the level of 20 yuan, and he lost 20,000 yuan. Although Wang Wu saw that the price was falling, he still hoped that the stock price would rebound in the near future, so he stood still. After a few days, He still didn't see the possibility of the three shares rising, so he had to reluctantly sell them. At this time, the price of the three shares had fallen to 10 yuan, and Wang Wu lost 30,000 yuan.So, which of the three investors Zhang San, Li Si, and Wang Wu has the least loss?It goes without saying, of course it is Zhang San.If you can get the same effect as Zhang San when you use this operation method, then "Li Daitao Zombie" is considered a success, and if you do Li Si or even Wang Wu in practice, then you are a loser, because "Li Daitao stiff" is to limit your losses to a minimum.In the stock market, although both novices and masters may lose money, there is still a big difference between novices and masters.When novices realize that they may have bought improper stocks, they are usually unwilling to sell, hoping that the stocks they bought will rise one day, but they wait and wait, and finally see that there is really no possibility of rising back. If you decide to sell, the stock price may have fallen a lot at this time, and you will lose a lot of money as a result, and you will regret it later.The difference between a master and a novice is that when a master finds that he has taken the wrong car and bought stocks that are falling, he will quickly sell them to minimize losses.Novices in the stock market, please don’t be unconvinced. As the saying goes: “Ginger is old and spicy”. If you don’t believe it, please see the following example: At the beginning of this century, Andre Miyer, a man of the world, appeared in the world stock market. This Paris-born Jew is famous in the international stock market for his cunning of a fox, viciousness of a snake, and sharp eyes of an eagle.In order to achieve his purpose, Miye has almost exhausted strategies, and everything has been carefully designed.According to the plan, gradually nibbled or swallowed, and finally established his financial kingdom.In his life, he has encountered countless strong winds and waves, and he can handle them well. In 1920, there were continuous financial crises in France. In just two or three weeks in 1924, the value of the franc fell by half.This point, Miye had already learned from the facial expression of the then French Minister of Finance at a financial oligarch gathering.Miye immediately ordered his agent to keep in touch with him at any time. From 1:00 p.m. to 3:15 p.m. one day in late August, the stock price on the Paris Stock Exchange plummeted. Many stock speculators immediately flocked to the telephone and ordered their brokers on the various exchanges to sell their stocks immediately.However, Miye had sold more than half of his stocks as early as 12 o'clock in the lunch room. Looking at the colleagues who were in a mess in the hall, Miye showed a mocking face.He knows that although he has suffered some losses due to the stock slump, because he has acted quickly and has limited the losses to a minimum, his vitality has not been damaged at all. When the time improves, he can still invest in stocks. Big picture on the big picture. Investing in stocks is a career of fighting against one's own psychology. Investors must learn to overcome themselves.Regardless of novices or masters, when their investment direction is wrong, the first light of hope is ignited, hoping that the stock price will come back to life due to some unexpected factors. These are two normal and beyond reproach psychological reactions.However, the next step should be to calmly analyze and make corresponding actions.The masters will quickly overcome themselves, extinguish the light of hope in their hearts, face reality squarely, and respond quickly to minimize losses as much as possible, just like what Andre Mier did.This is exactly what novices in the stock market should make great efforts to emulate.If you're always hesitating, and you're keeping your bad investments on the back of hope, you're going to fail badly.Therefore, we advise investors, especially those new to the stock market, not to be stingy with their losses, otherwise, you will suffer even greater losses.You must remember that the strategy of "Li Daitao is stiff" is only a means to limit losses, and to preserve vitality and make a comeback is the goal. You don't understand the principle of "keep the green hills alive, and don't worry about running out of firewood", don't you? !