Recap

One day, I received a mysterious invitation letter, which said: "You have been selected to participate in a special stock investment seminar. Three leaders in the investment industry will personally teach you their secrets." I arrived at the venue feeling both excited and anxious.
The venue was brightly lit and filled with investment experts from all walks of life. Under the spotlight, I met Mr. Li, a master of technical analysis, Ms. Wang, an expert in value investment, and Mr. Zhang, a genius in news investment. They introduced their investment concepts and strategies to me respectively.
However, listening to their inscrutable explanations, I was completely confused about what K-line charts, intrinsic value, and news-driven trading were. The three leaders noticed my confusion and smiled at each other...

The picture shows the mysterious invitation letter

Stock investment is a complex and diverse subject, and different investment schools have their own theoretical foundations and practical methods. Among them, technical analysis, value investing and news investing are three common investment schools.

1. Technical Analysis Mr. Li

Technical analysis is a method of predicting future price movements by studying historical data on stock prices and trading volumes. Technical analysts believe that all factors that affect stock prices will be reflected in price and trading volume, so market trends and trading opportunities can be discovered through charts and technical indicators.

1. Principle : The core of technical analysis is that "price reflects everything". It assumes that market prices already reflect all available information, so price movements can reveal future trends. Technical analysis usually uses various charts, such as K-line charts, trend lines, moving averages, etc., as well as technical indicators, such as relative strength index ( RSI ), moving average convergence divergence indicator ( MACD ), etc.

2. Advantages : The main advantage of technical analysis is its operability and intuitiveness. It can be applied to different markets and time frames and is suitable for both short-term traders and day traders. In addition, technical analysis tools and software are very mature and can be easily obtained and used by investors.

3. Disadvantages : The disadvantage of technical analysis is that it does not take into account the fundamentals of the company and may ignore some important factors that affect prices in the long term. In addition, technical analysis has high requirements for market effectiveness, and its accuracy may be reduced when the market fluctuates violently or the news has a large impact.

2. Value investment Ms. Wang

Value investing is an investment method that searches for undervalued stocks and holds them for the long term by analyzing the intrinsic value of the company. This method was proposed by Benjamin Graham and carried forward by investment gurus such as Warren Buffett.

1. Principle : The core of value investing is "buy when it's undervalued and sell when it's overvalued." Value investors believe that the market sometimes misprices stocks, causing stocks to be priced below their intrinsic value. Value investors try to discover these undervalued stocks by in-depth analysis of the company's financial statements, business model, management capabilities and market prospects.

2. Advantages : The advantages of value investing are its stability and long-term returns. Because value investors buy stocks whose intrinsic value is higher than the market price, the downside risk is relatively small. At the same time, over time, the market often corrects mispricings and investors can reap substantial capital appreciation.

3. Disadvantages : The disadvantages of value investing are the need for longer holding periods and in-depth analytical skills. Since it can take a long time for the market to reflect a company's intrinsic value, value investors need to have patience and confidence . In addition, value investing requires a lot of data analysis and industry research, and requires higher professional knowledge from investors.

3. News Investment Mr. Zhang

News investing is a method of making investment decisions based on market news and major events. News investors believe that the market's reaction to important information will bring about significant price fluctuations, so they can obtain investment returns through quick reactions.

1. Principle : The core of news investment is "information is money". News Investors pay close attention to market dynamics, company announcements, economic data, policy changes, etc., and make investment decisions quickly. They believe that market reactions to new news can produce short-term price fluctuations that provide trading opportunities.

2. Advantages : The advantages of messaging investing are its flexibility and high return potential. Because news investors typically trade immediately after news is announced, they are able to quickly capture gains from market fluctuations. Additionally, news investing is particularly beneficial for short-term traders because they can profit from the market's instantaneous reactions.

3. Disadvantages : The disadvantages of news investing are its risks and uncertainties. The market's reaction to news can be instantaneous and unpredictable, which makes news investors need to bear higher risks. In addition, news investment requires investors to have keen market insights and quick response capabilities, which is a greater challenge for ordinary investors.

in conclusion

Although under the guidance of three investment masters, I have a preliminary understanding of technical analysis, value investing and news investing, my practical experience is still insufficient.
Whenever I try to apply what I've learned to make investment decisions, I always feel a lack of confidence and experience.
Facing the fluctuations and changes of the market, I realized that just mastering the theory is not enough. More practical exercises and experience accumulation are needed to truly become a mature investor.

Technical analysis, value investing and news investing are the three major schools of stock investment, each with its own unique theoretical basis and practical methods. Technical analysis is suitable for short-term traders and day traders, who use charts and technical indicators to discover market trends; value investing is suitable for long-term investors, who find undervalued stocks through in-depth analysis of the company's intrinsic value; news investing is suitable for those who have the ability to react quickly and market insight investors to capture trading opportunities through market news and major events.

Investors should choose an investment strategy that suits them based on their own risk tolerance, investment objectives and professional knowledge. No matter which investment method you choose, you need to continue to learn and accumulate experience to improve the accuracy and success rate of investment decisions.

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Last edited at：2024/12/16