Personally, if the idle funds are less than 654.38+ million, don't try to buy stocks, especially don't buy a stock. Do a good job in basic financial management, and you can outperform inflation.
The fund amount is 500,000-1 10,000. Only by learning to judge individual stocks can investing in the stock market have practical significance for improving personal finance.
The reason is also very simple:
First of all, it is unrealistic to give up the idea of getting rich in the capital market, unless you are a genius who fell from the sky.
Final income = investment principal x annualized rate of return x time
The three factors that determine the result are all variables. Only the invested principal can control these three variables, and the other two variables, one is predictable but uncontrollable (time) and the other is unpredictable and uncontrollable (rate of return).
At first glance, it is obvious that when the amount of funds is small, we should work hard, accumulate the principal and cooperate with the correct financial management methods (funds and stock index ETFs). Learn quantitative investment knowledge.
Remember not to be brainwashed by the popular consumerism. Young people should be kind to themselves, buy them at buy buy, and have consumer loans after the moonlight.
Adhere to some life principles and understand that what needs to be paid in cash in life is a liability or an asset. What you have to do is to create and buy assets as much as possible and reduce liabilities.
When the amount of funds reaches 500,000 or 6,543.8+0,000, it is good to change from financial management mentality to investment mentality.
For the same effort, 10,000 10% is10,000,10,000 is10,000 is/.
The amount of money determines the same time and effort, and the return is not an order of magnitude at all.
There are many factions in the A-share market with different ways, and there are only three ways to make profits:
Play a game of interests with others and institutions,
Equity dividends and profit growth of investment companies,
Profit from the big cycle of the market.
Most ordinary investors do not have a clear understanding of themselves, but out of a desire for profit.
As far as the investment method is concerned, the third way is more suitable, that is, killing rabbits with turtles (I call myself the tortoise rule, which means not to compete faster with others, but to live longer and climb farther).
However, most people who enter the market, especially men, are often overconfident because of the expectation of winning and earning, and will choose to play (gamble) with their opponents first.
The second representative is value investment, which needs to have certain financial analysis ability, information induction and summary ability, and can make rational judgments at the right time. The comprehensive ability of people is very demanding. This requires time to temper and continuous learning (many people's personalities are inherently unsuitable for investment). The representatives are Buffett and Munger.