- Zhang Bao Long says that volatility is a constant in the stock market.
- It is crucial to avoid emotional decisions when trading in the stock market.
- Buy the rise, sell the dips, and secure profits with substantial volumes.
Renowned Chinese stock investor Zhang Bao Long, believes that market volatility is the only constant investors can count on. He noted that stocks rise and fall daily, and the key to investing, he says, is to ignore the fluctuations and find stocks with strong trends. Zhang made the statement during an exclusive interview, where he reflected on the principles behind his successful practice as a stock trader for many years.
According to Zhang, it is crucial to stay calm and avoid emotional decisions when trading in the stock market. The renowned investor, also known as the “Warren Buffet of China,” noted that the secret to successful investment is identifying stocks that remain resilient even in bear markets.
Focusing on strategy, the Finanx AI chief shared his investment motto: “Buy the rise, sell the dips, secure profits with substantial volumes, and sell at the peak.” He says this strategy has helped him handle the ups and downs of the stock market.
Global Uncertainty and the Stock Market
Meanwhile, Zhang also talked about growing global uncertainty and its effect on the stock market. He sees war as the biggest threat to the global economy. The ongoing conflict between Russia and Ukraine, along with tensions in the Middle East, are hurting the markets.
But Zhang says that war and tensions don’t affect all sectors the same way. He pointed to defense, oil, and gold as sectors benefiting from these situations. According to Zhang, crises often provide opportunities for investors.
Behavioral Finance and Market Trends
Zhang also believes that behavioral finance is important for making investment decisions. He says that market changes reflect human emotions and that the stock market’s trend patterns are predictable. He thinks investors’ success lies in their ability to stay calm during market fluctuations and make rational decisions.
Zhang predicted that 2024 would mark a crucial season in China’s stock market, considering it is entering a new growth cycle influenced by the country’s 5,000-year cultural economic cycles. According to Zhang, emerging sectors like digitalization and artificial intelligence will present more rapid growth opportunities in the Chinese stock market.
Meanwhile, it is worth noting that Zhang’s investment motto has become a widely studied reference tool for investors. He encouraged stock traders to focus on market cycles, seize opportunities in digital transformation, and embrace the upcoming golden age of China’s capital markets.
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