Can stocks be held for a long time_What will happen if stocks are held for a long time

Holding stocks for a long time is a common stock investment strategy. As long as the investor has enough excellent investment vision and investment ability to accurately grasp the investment timing, the choice of long-term stock holding investment strategy can bring investors rich returns. The following is a small compilation of stocks can be held for a long time, I hope to be able to help you.

Can stocks be held for the long term

(a) The fundamentals of the stock issuing company. If an investor wants to hold a stock for a long period of time, the situation of that stock issuing company becomes very important. In the short term, it may be possible for a variety of reasons that even if the stock-issuing company is in bad shape, this stock can see a significant rise in a short period of time. Over a longer time horizon, the price of a stock becomes relevant to the situation of the issuing company. Because a longer time horizon can more effectively eliminate the influence of certain contingent factors, without the influence of contingent factors, the stock price can truly reflect the operating conditions of the issuing company.

(ii) The general trend of the stock market. The price trend of a single stock can not be detached from the influence of the general trend of the stock market. In a bull market, even the worse stocks can bring good returns. In a bear market, even good stocks can struggle to make large returns. If they want to hold stocks for the long term, investors have to deal with changes in the general trend of the stock market.

What stocks face when held for the long term

(a) Stock delisting. If the issuing company of a stock held by an investor is not doing well and the stock is delisted. It is very difficult for investors to recover their investment. The good news is that stock delisting is less common in China's stock market. As of September 2018, the Shanghai Stock Exchange and Shenzhen Stock Exchange a*** only 105 listed companies have had their shares delisted.

(ii) Stocks don't delist but keep falling. In this case, the investor can be said to be trapped and the investor will keep losing his money.

(iii) The stock sees a rise. If this happens, the investor can say that he or she has been very lucky. By simply selling the stock holdings, the investor will be able to make a profit.

(iv) The stock trend has been flat. In this case, leaving the stock sitting will neither go up nor down significantly. What exactly to do with the stock depends on what the investor thinks for himself.

It is important to note that if the stock is left alone all the time, the investor tends to experience a longer waiting period until the stock gains. Investors need to factor in this waiting time when calculating how high or low a stock's return will be.

Judging whether a stock can be held for a long time

First, the market's bull and bear cycle, make a judgment, the end of the bear market to do more, the end of the bull market to liquidate the position.

Bull market madness, what stocks have a bubble, that is the liquidity of the premium, once the liquidity can not keep up, the bubble will burst, this is the eternal law.

So, when the market is crazy, you need to be calm, and you can't hold on to the idea of holding stocks for a long time.

Currently the market is in a bear market reversal cycle, most stocks are at the bottom of the region, there are many stocks to choose from.

Secondly, choose sectors that are strongly advocated.

So which industries have room for growth in the future? Must be 5G, cloud computing, big data, Internet of Things, Internet of Cars, VR/AR and other technology direction.

Third, returning to the level of individual stocks, the stock price is at a low level and reversed.

Making money in the A-share has never been low buy high sell, low layout, high flight, especially from the big cycle, stocks in the low this condition is very important.

In fact, we can think of it this way, a stock turned 5 times, and then turn 1 times, it becomes 10 times, you are willing to go for 1 times the space, to take over 5 times the profit space of the chips! Therefore, to do a long period of investment, we must firmly hold the chips at the bottom, do not be tempted to chase the high position of the stock.