Chapter 13 Chapter 13 "Shocking the Grass to Startle the Snake" and Preparation for Stock Investment

In the Tang Dynasty of our country, there used to be a county magistrate named Wang Lu in Dangtu County.Following the same pattern, his group of yamen servants followed suit one after another, causing the common people to complain endlessly.Some county residents were so angry that they sued one of County Magistrate Wang's chief bookkeepers for corruption. After reading the pleadings, County Magistrate Wang thought it was an allusion to himself. Grass, I have startled the snake", the eight-character comment.This incident was not only passed down as a joke by later generations, but also left an idiom that is still in use today, "to startle the snake by beating the grass."

Later, this idiom was included in "Thirty-Six Strategies" and became the first strategy in the third set of offensive strategies. "Suspect turns out to be untrue, observe and then act; recovery is the medium of yin." This trick mainly explains that after observing and knowing the other party's movement, you can take action.In the military, repeated reconnaissance is emphasized.For example, when you encounter complex terrain, deep grass and dense forests on the way to march, you need to search repeatedly;Sun Tzu said it well: "Soldiers are the great affairs of the country. The place of death and life, the way of survival, must be investigated." It contains such a meaning.War is a major matter that concerns the life and death of a country and an army. Before launching a war, you must carefully consider it. Once you decide to go to war, you must be careful in every way, be ready to investigate and study at any time, and make all preparations to prevent accidents.Otherwise, it will be a big mistake.

In 262 BC, King Qin Zhaoxiang sent a large army to attack the State of Zhao, and the two armies were at a stalemate in Changhu (northwest of Gaoping County, Shanxi Province today).At this time, King Zhao listened to the slander and appointed Zhao Kuo, who had no actual combat experience, as the main general, replacing the experienced veteran Lian Po.On the contrary, the King of Qin appointed Bai Qi, an outstanding military strategist, as the commander-in-chief, and sent additional troops in an attempt to annihilate the Zhao army in one fell swoop. Aiming at Zhao Kuo's weakness of inexperience in actual combat and reckless underestimation of the enemy, Bai Qi decided to adopt a tactic of outflanking Zhao Jun.He first ordered the Qin army to form a pocket-shaped position in the Changbi area and defend it with the main force to prevent the Zhao army from attacking. On the two wings of the long wall, 25,000 elite soldiers were deployed, ready to penetrate behind the Zhao army and cut off its food road; in addition, he also sent 5,000 elite cavalry to penetrate into the middle of the Zhao army's camp, so that the Zhao army could not look at each other from head to tail.

Zhao Kuo was not aware of Ziqi's arrangement.In August 260 BC, he led his army to launch a large-scale attack on the Qin army.Qin Junxian: The leading troops pretended to be defeated.Zhao Kuo, who didn't know the truth, didn't do any reconnaissance work, so he ordered the pursuit.As a result, Zhao Jun was galled at the long wall.At this time, the 25,000 Qin troops deployed on the two wings immediately dispatched and inserted behind the Zhao army, forming an encirclement position against the Zhao army. 5,000 cavalry also rushed in quickly, going back and forth to raid Zhao Jun.Zhao Jun launched several attacks but failed, so he had to camp on the spot and wait for reinforcements.Unexpectedly, Zhao's reinforcements and food transportation have all been cut off by the Qin army.By September of this year, Zhao Jun had been out of food for 46 days. The soldiers were starving and killed each other.Zhao Kuo continued to organize breakouts without success.In desperation, he decided to gather an elite force with thick armor and fast horses, commanded by him personally, to fight the breakout battle.But this time he didn't do a careful investigation. His breakout troops encountered the elite of the Qin army, so that he was shot to death by random arrows as soon as he appeared in front of the formation.Seeing that the main general was killed in battle, his subordinates collapsed without a fight, and all 400,000 troops surrendered.In the end, they were all killed.The Battle of Changping ended with the victory of the Qin army and the disastrous defeat of the Zhao army.Zhao Guo, which originally had a strong military strength, also went from prosperity to decline after this battle. After just over 30 years, it was destroyed by Qin State.

The subjective reason for Zhao Kuo's failure lies entirely in his lack of actual combat experience, without any investigation and research, and without any certainty, he rashly fought a decisive battle with a strong enemy, which resulted in a disastrous defeat.To put it simply, he did not "alarm the snake".This lesson is not only worthy of reference for future generations of generals, but also worthy of deep consideration for our stock investors today.You know, the stock market is like a battlefield. If you do not do in-depth and detailed investigation and research before investing in the stock market, and act rashly without making sufficient preparations, you will only incur the same results as Zhao Kuo. It's not known whether he went bankrupt until he reached a dead end.Therefore, friends should remember that before investing in stocks, the procedure of "alarming the snake" is inevitable.

So, for stock investment papers, what research and preparation should be done in advance? First, information should be collected.Sun Tzu said: "Know yourself and know the enemy, and you will never be imperiled in a hundred battles." Knowing yourself means evaluating yourself correctly and objectively.You must not only see your own strengths, but also see your own shortcomings, so as to maximize your strengths and overcome your weaknesses, or use their strengths to make up for your own weaknesses; knowing the enemy means evaluating your opponent correctly and objectively, and insight into the opponent's psychology. , in order to use one's own strengths to attack the other's weaknesses.The same is true for stock investment. If you know nothing or little about the stock you want to invest in and the situation of the issuing company, it is not a blind man riding a blind horse. Therefore, investors should collect extensive information before investing.

At present, there are many materials that can be an important basis for basic analysis, which can be roughly divided into the following aspects: Important national economic policies and measures.Such as: changes in industrial policies, increase or decrease in interest rates, increase or decrease in taxes, state management measures on the stock market, increase or decrease in tax rates, and so on. - General economic statistics.Such as: the growth rate of output value of all walks of life, the average financial indicators of all walks of life, the growth rate of the national economy, and so on.

The operating dynamics of the stock issuing company.Such as: the important decision of the board of directors of the joint-stock company on the operation and management, the change of the main person in charge of the company, the turnover of the company in each period, the implementation and benefits of major investment.Various economic indicators on Gongtong's quarterly profit and loss statement, etc. Information about the stock market.Such as: changes in various major stock prices, investment enthusiasm of most investors in the stock market, changes in stock price indexes, basic conditions of newly listed stock issue companies, etc.

Financial and price statistics.Such as: changes in various investment methods or yields, changes in currency circulation, changes in major deposit and loan interest rates, and so on. Sudden non-economic factors.Such as: natural disasters and their impact on the economy and so on. There are many channels for collecting information. You can learn about the situation from TV, radio, and magazines, and you can also collect prospectuses, annual reports, quarterly, financial statements, and loss statements of listed companies, and you can even go to the stock market for on-the-spot observation.In short, investors should continuously collect various relevant information for decision-making based on the elements of fundamental analysis.This work will be boring, but it will keep you focused and make a difference in whether your decision is correct or not.The rise of Apple Computer in the United States is a good example of the problem.

Apple Computer, known as the "Miracle of Modern America", was once a very ordinary small computer company, and it was very difficult to survive.Because the company almost monopolized the computers in the United States at that time, and 40% of the computers in the world were produced by this company.Faced with such a powerful competitor, it is really difficult for the small Apple Computer Company to make a fortune.But at this time, some venture capitalists in the United States resolutely used a large sum of money to buy the stock of this little-known small company.Because they concluded by analyzing the data, it will not be long before a major change will take place in the US computer industry, and the demand for family and personal computers will increase. Apple Computer Company is in line with this trend.They decided that such a company must be profitable.

Sure enough, a few years later, a whirlwind of personal computers pushed Apple Computer to the pinnacle of the personal computer industry. Investors made a fortune.Isn't this a very vivid example of "striking the grass to scare the snake"! Secondly, stock price analysis should be carried out. After collecting data and mastering information, the purpose is to carry out stock price analysis.This is very important for investors.When you are going to get involved in the stock market, you must first learn to judge the trend of stock prices.There are many factors that affect stock price changes, the most frequent and direct ones are economic factors, including economic cycle, price changes, interest rate levels, tax policies, exchange rate adjustments, the impact of international economic relations, money supply increases and decreases, etc. At the same time, it is also related to the company's operating conditions and human manipulation factors.So complicated, what method do we use to split it? Stock price analysis can be divided into two aspects: fundamental analysis and technical analysis.The so-called fundamental analysis refers to studying the value of stocks and measuring the level of stock prices by analyzing the management status of each company, the dynamics of the industry and the general economic situation.The basis for the basic analysis is domestic and foreign political and economic dynamics, financial and economic conditions, industrial prosperity and decline, and the operating conditions of each stock issuing company.The purpose of the basic analysis of stock prices is to judge the current stock price, which can solve the problem of "what kind of stocks should be bought"; the technical analysis of stock prices generally refers to the use of certain historical data to judge the direction of future changes in the entire stock market or individual stock prices and various splitting methods of degrees.The basis of technical analysis is the willingness of investors to buy and sell in the stock market, the direction of stock price fluctuations and the strength of momentum.The purpose of technical analysis of stock prices is to predict the trend of stock price fluctuations, which can solve the problem of "when to buy and sell stocks". The basic analysis and technical analysis of stock prices are complementary and complementary to each other.Familiarity with basic analysis can cultivate securities professional knowledge and internal cultivation, but if you know nothing about technical analysis and ignore the timing of buying and selling, although you will choose stocks, you will not be able to use limited funds at the most appropriate timing. resulting in waste.Familiarity with technical analysis can cultivate the courage and confidence of stock investors, but if you lack understanding of fundamental analysis, you can only become a brave man. Although you may achieve certain results, it will be difficult to achieve great things in the end. The above theories may be a bit boring for novices who are new to the stock market.But for people in the stock market, no matter how much you hate didactic theories, you should not take the stock market theory lightly, because participating in the stock market means that at least part of your livelihood depends on the changes in the stock market. Learning some stock market theories, It is equal to one more success and one less adventure.Dialectics tells us that theory comes from practice and guides practice. After learning it, it can guide us to avoid detours. , while learning the theory of the stock market, you must also pay attention to maintaining your own opinions, don't follow others' opinions and watch the wind move, don't you see that some big names who are familiar with the theory of the stock market often stumble?See the example below: Liu Luanxiong, who is known as the "killer" in the Hong Kong stock market, has been in the stock market since 1963, and he has always been victorious.However, just as storytellers often say, "If the earthen pot is not separated from the well, the general will inevitably die before the battle." Although Liu Luanxiong has repeatedly used killers in the stock market and succeeded one after another, he will inevitably be "killed". In the second half of 1987, the Hong Kong stock market rose wildly, and Liu Luanxiong was also ambitious and determined to make a fortune.He bought stocks like crazy, and first bought the shares of Oriental Daily and Huitai Company.Later, it bought "Xinchang" and "Roche Knitting" stocks.In the end, he bought the stocks of "Yulang" and "Bao Hua Construction" and thought he had a plan.Unexpectedly, the good times did not last long, and then a worldwide stock market crash occurred, and Hong Kong stocks also fell wildly.The stocks in Liu Luanxiong's hands suddenly turned into chicken ribs, and there was no meat to eat, and there was no life in discarding them.As for those minority shareholders who thought they would not suffer from following Liu Luanxiong, they shouted that they were unlucky.It can be seen that when the top players in the stock market also stumble, excessive superstitious belief in authoritative theories or authoritative figures will also cause disasters.Above, the author introduced some preparatory work that should be done before entering the stock market. "Don't fight unprepared battles" is the creed of military strategists, and "striking grass to scare snakes" should also be a guide for investors when entering the stock market.