Sample essay on essential knowledge for playing in the stock market

As a financial product, stocks have been accepted by the majority of investors. Stock investment is extremely risky, but the returns can also be very high. So what is stock investment, and what are the characteristics of stock investment? Here I would like to share with you some must-know knowledge about the stock market for your reference.

Basic terminology for introductory stock knowledge

Main board market: The main board market is also called the first board market, which refers to the securities market (usually the stock market) in the traditional sense. It is a country or The main place for regional securities issuance, listing and trading.

GEM: Also known as the second board market or the second stock trading market, it is a type of securities market different from the main board market. It is designed for entrepreneurial companies, small and medium-sized enterprises and high-tech companies that are temporarily unable to be listed on the main board. The securities trading market provides financing channels and growth space for industrial enterprises and other enterprises that need financing and development. It is an important supplement to the main board market and plays an important position in the capital market.

New Third Board: Originally refers to the Zhongguancun Science and Technology Park unlisted joint-stock company entering the agency share system for transfer pilot, because the listed companies are high-tech enterprises and different from the delisted companies in the original transfer system and the original STAQ , NET system listed companies, so it is vividly called the "New Third Board". At present, the New Third Board is no longer limited to non-listed joint stock companies in Zhongguancun Science and Technology Park, nor is it limited to non-listed joint stock companies in pilot areas such as Tianjin Binhai, Wuhan East Lake, and Shanghai Zhangjiang, but is a nationwide non-listed joint stock company. The trading platform is mainly aimed at small, medium and micro enterprises.

Blue chip stocks: refers to a stable cash dividend policy that has higher requirements for the company's cash flow management. Usually, those company stocks with good operating performance and stable and high cash dividend payments are called " Blue chip stocks”. Blue chip stocks mostly refer to large, traditional industrial stocks and financial stocks with long-term stable growth.

Red chip stocks: This concept was born in the Hong Kong stock market in the early 1990s. The People's Republic of China is sometimes called Red China internationally. Correspondingly, Hong Kong and international investors refer to stocks with mainland China concepts registered overseas and listed in Hong Kong as red chips.

Bull market: There are more buyers than sellers in the stock market, and the stock market is bullish, which is called a bull market.

Bear market: A bear market is the opposite of a bull market. There are more sellers than buyers in the stock market, and a bearish stock market is called a bear market.

Opening price: refers to the price of the first transaction of the stock after the market opens on that day. If there is no transaction price within 30 minutes after the market opens, the closing price of the previous day will be used as the opening price.

Closing price: refers to the price of the last stock traded every day, which is the closing price.

Highest price: refers to the highest price among the prices traded on that day. Sometimes the highest price is only one price, and sometimes there is more than one price.

Lowest price: refers to the lowest price among the prices traded on that day. Sometimes the lowest price is only one price, and sometimes there is more than one price.

Blue chip stocks: refer to the stocks of companies with excellent performance but slow growth. This type of company has the strength to withstand the economic downturn, but this type of company cannot bring you exciting profits. Because the business of such companies is relatively mature and they do not need to spend a lot of money to expand their business, the main purpose of investing in such companies is to obtain dividends. In addition, when investing in such stocks, the price-to-earnings ratio should not be too high, and at the same time, pay attention to the historical record of stock prices fluctuating during economic downturns.

Popular stocks: refer to stocks with large trading volume, strong liquidity and large stock price changes.

Growth stocks: refer to stocks issued by companies whose sales and profits continue to grow faster than the growth of the entire country and industry. These companies usually have big plans, focus on scientific research, and retain large amounts of profits to reinvest to promote their expansion.

Notes on investing in stocks

1. Be brave enough to face the stock market. Since investors choose to invest in the stock market, they should have the courage to face the stock market and avoid negative emotions such as fear. Invest in stocks It is nothing more than a matter of profit and loss. When a buying point appears based on your own indicators, you will decisively open a position to buy. When a selling point appears, you will sell without hesitation.

2. Don’t regret your investment. There are many factors that affect the trend of stock prices in the stock market, and there is often randomness. Therefore, every trading investment cannot be guaranteed to be foolproof, but after making your own analysis, Don’t feel regretful when investing, as this will only increase negative emotions and affect your next operation. Novice investors should regard winning and losing as common military affairs, and resolutely set up profit-taking and stop-loss points.

3. Maintain a correct investment mentality. I would like to remind all investors to maintain a correct mentality when investing. We all know that fear and greed are human nature and are also taboos in investment. For novice investors, overcoming their own negative mentality has become the primary issue. When there is a profitable market, you must have the courage to chase the rise. If you are timid, you will eventually be eliminated; at the same time, do not be greedy for more in stock selection. Choose stocks with investment value according to the capital situation. When the rising market occurs, you should act within your ability and do not blindly overdraw. ;Sell decisively when the profit-taking point is reached.

4. Investors who are good at waiting for opportunities to succeed can often endure loneliness and wait for good opportunities to come. The stock market often experiences repeated swings, so don't be impatient.

Investors will inevitably have the mentality of getting rich overnight, wishing that their stocks would hit the limit every day, so they would fill their positions all day long to chase the rise and fall, but before they knew it, they had lost more than half of their money. Only then did I suddenly realize that I had sold the stocks that I should have continued to hold, and I still had the stocks that I should have sold, and I had not waited for the corresponding opportunity to operate, so I regretted it too late.

How much is the transaction fee for stocks with a market value of 10,000 yuan?

Currently, the highest commission for buying and selling stocks is 30/10,000 of the transaction amount. That is, if you buy a stock of 10,000 yuan, you have to pay it to the securities company 30 yuan commission. The lowest is 20,000 yuan, that is, if you buy a stock worth 10,000 yuan, you will have to pay a commission of 2 yuan to the securities company.

It’s like buying clothes. If you don’t counter-offer, they will earn you 30 yuan. You If you are good at counteroffering, you may only earn 2 yuan.

Commission is charged for both transactions, with a minimum charge of 5 yuan.

In addition, the stamp duty is 1/1,000 of the transaction amount. This is uniform across the country and cannot be negotiated. There is no stamp duty on the purchase. There is also a transfer fee of 0.06 yuan for every 100 shares in Shanghai stock market, but not in Shenzhen stock market.