For example, the incremental market is a sales market with room for growth, and the stock market is a saturated market! Compared with the second-hand circulation of real estate, the sales market formed by newly developed houses by real estate developers is an incremental market. The second-hand housing transaction is a stock market, and the houses in circulation are not new.
Talking about the competition in the stock market; On the innovation in incremental market: the user demand in the stock market is clear, so the competition in the stock market is also great, while the incremental market lacks competitors but also lacks a frame of reference, so the incremental market is uncertain. Therefore, when we do the stock market, we can knock our competitors, or the cost is lower, or the running score is higher, or the performance is stronger. When we do the incremental market, there is no object to knock, and the key point is to overcome the uncertainty of the incremental market. At this time, it is necessary to study the real pain points of customers in detail and create customer value.
Jobs said that users don't know that their needs are talking about incremental markets, so Apple is good at analyzing users' insights and innovations, while Gree Air Conditioning is fighting its way out in the stock market, because Gree Air Conditioning is doing product competitiveness and obviously surpasses competitors in product performance, forming a brand reputation.
The stock market is a stock market game in the short term and an incremental market allocation in the long term. So it makes sense to be a voting machine for a short time and a weighing machine for a long time.
Therefore, people who make stocks must know which money your trading system earns. If it is a speculative game, it is useless to bet on such long cows as Tencent, Apple, Haikang and Haitian, and you can't catch them! Speculative game can only study psychology, quantity and price analysis, and never pay attention to fundamentals and technology. This is because people want to make money in the incremental stock market, thinking about long-term things in their minds, and doing short-term things when trading, so the losses are unclear. We often hear people say, why do I think this company is very powerful? There are many patents, and I have a good market development. Why did the stock lose 50%? This is to make money in the stock market by incremental market method, and the ending will be very miserable.
If you are doing an incremental market, you often have the determination and patience to cross the bulls and bears, and you will not waver when you go up 500% and not be discouraged when you fall 90%. Because market changes are not the reason for trading, the reason for trading is whether the company can continue to rise in the future and whether its performance can continue to realize value. Does the rise and fall of the market have a lot to do with how much profit is created behind the company? If it's not big, why should it be discounted because of the bear market? If you buy because you are optimistic about a company, but sell because of a bear market, this is the disorder of the trading system. The reason for selling is not unique, and so is the reason for buying. Even the best trading logic will be destroyed.
At present, several feasible trading modes:
1, short-term: the only reason to buy a single stock is to have confidence in the stock in the short term, and the short-term bulls crush the short-term forces. The only reason for selling is that the reason for buying at the beginning is no longer valid. Because the rise is generally beneficial to bulls, the stock market rise often needs to chase after the rise to succeed, and it is best to break through the buying method. However, the risk is that the extremes will be reversed, and the bulls will suddenly become short when they reach the extreme.
2. Midline: Following the rhythm of the whole market, the only reason to buy is that bulls are stronger than bulls, commonly known as bull market, and the market is in an upward channel. The only reason for selling is that the market bulls are weaker than the bears, and the market is in a downward channel.
3. Ultra-long line: to be an incremental market, that is, to increase the valuation with the development of the company. The only reason to buy is that the company's current price is lower than the actual valuation (depending on profitability and growth), and the only reason to sell is that the company's current share price is higher than the actual valuation.
Of the three strategies, 1, 2 is a game in the stock market. You earn money from others, while 3 is incremental market investment. You earn returns from the company's development, so overall, 3 is easier to succeed.