Stock selection is to keep going through the sieve, from big holes to small holes, from coarse mesh to fine mesh, over and over again. Until the finest and highest quality stocks are screened out.Some people will ask, how much is less? Personally, if your capital does not exceed 1 million and you hold up to 5 or 6 stocks at the same time, that's enough. Even if you average the score, each stock will have nearly 200,000 funds, and 20% of the positions will be enough, regardless of the profit value of a single stock or the contribution to the portfolio.The logic of profiteering is less but better.
In the stock market, many people have greedy ideas. Especially, when their investment logic is not particularly clear, many stocks will be bought if they are grasped correctly. Buying and buying, I found that my position was full, but a single stock only had a little position.At the beginning, the granularity research is coarse, it doesn't matter, and it is slowly eliminated. For example, you can screen by industry, then remove some according to business model, and then remove some according to assets and liabilities, etc. In each round of screening, only the best ones are retained and the poor ones are removed.Don't feel good when picking stocks. After buying a bunch of stocks, the position of each stock is just a scratch. Even if you see it right, you can't make a lot of money if it rises sharply.
The logic of profiteering is less but better.The logic of profiteering is less but better.