The stock market often has different hot spots, and the performance of hot spots is often eye-catching. Ordinary investors, including myself, have tried to catch every hot spot before, and the stock recommendation of major media is also predicting hot spots, because catching hot spots means making money quickly. However, people's energy is limited. There are more than 1500 stocks, and the factors affecting the stock price are very complicated. If you try to catch every hot spot, you will be exhausted and often have a wrong rhythm (see

The rhythm and news of "stock trading"

) chasing up and down. In "

Reflection on misreading the market.

I said in my article that it is impossible for ordinary people to accurately predict the trend of the market, the transformation of hot spots and the rhythm of individual stocks. But it does not completely deny the analysis of hot spots. The correct way is to find sustainable hotspots within a few years. This sustainable hotspot is the main line of investment, such as the big bull market since 2005. Non-ferrous metals, securities, consumption upgrading, equipment manufacturing, banking, real estate, military industry, coal and oil are the main investment lines of mainstream institutions, and this investment line is based on the national economic development and the world economic situation. With fundamental support, it will not change in the short term.

Allocation of assets around the main line of investment will lead to more income than the market. Often the mainstream hotspots will temporarily cool down or adjust after overheating, and other unpopular industries (such as textiles and paper making) will also heat up. At this time, we should wait patiently for the main investment line to be adjusted to cover the position, and wait for it to become the next hot spot, instead of being tempted by non-mainstream short-term hot spots. Judging from the classification index, industries that invest in the main line can always outperform industries that do not invest.

The main investment line itself has overheating and temporary cooling, such as non-ferrous metals and real estate, which encountered a cold current in this adjustment. How to grasp their rhythm? The operating methods of western mainstream institutions: when they have selected several main investment lines, they will reduce their holdings if the stocks of a certain industry are overheated, and will maintain their holdings once they return to the normal valuation level, and will increase their holdings if they are undervalued. However, they will always focus on the main line of investment, and will not chop and change. Unless there is a major change in the industry, they will adjust the industry configuration and make a sell rating. Unless a country's economy deteriorates obviously, it will choose other countries.

Conclusion: 1 Don't try to catch all the hot spots, but catch the right main line of investment.

2. Don't try to grasp the rhythm of all stocks. If you have market experience, you can try to grasp the main rhythm of individual stocks in the main investment line.

3. The simple way is to choose the leading stock with less flexibility in the main investment line and hold it patiently for a long time, regardless of the ups and downs of the market and the rhythm of its own ups and downs. If the stock falls, wait for it to rebound.