A associate professor teaching earthquake theory at Peking University held a lecture on how college students at Peking University can make money by trading stocks.


I looked at this PPT, and for newcomers, it’s quite well explained, with theoretical insights and some technical analysis.
This professor has probably been playing in the A-share market for a long time. The speaker is named Zhao Kegang, an associate professor at the School of Earth and Space Sciences at Peking University.
This stock trading and profit-making course is an extension lecture following the "Earthquake Theory" class.
◦ Short-term trading is a zero-sum game (someone makes money, someone loses), while long-term holding of indices is a positive-sum game (economic growth dividends).
◦ The market isn’t where smart people make money from fools, but where systematic people make money from unsystematic people; those with information advantages make money from those without.
◦ Position management > stock selection ability. If the direction is correct and the position is light, you won’t make much; if the direction is wrong and the position is heavy, you get wiped out in one shot.
◦ Patience is a virtue. 80% of gains come from 20% of the time.
◦ What kind of people are suitable for stock trading? Not necessarily smart people or highly educated people, but those with patience (can wait), discipline (can hold), self-reflection ability (can improve), and the ability to withstand volatility (can endure). Trading is not just a pure intelligence game; besides intelligence, it’s a complex system that integrates psychology, behavioral finance, risk management, and rational decision-making.
◦ The three main principles of stock trading profitability: 1) Protect capital: position management, stop-loss discipline, etc.; 2) Steady profits: trading systems, consistency, etc.; 3) Pursue excellence: continuous learning, compound interest, patience, etc.
◦ Common fatal mistakes investors make: ① Treat investing as a hobby but expect to make money with amateur skills; ② Comparing three times before buying toilet paper but only spending 3 minutes reviewing a stock; ③ Having the ambition to make 1 billion yuan but lacking the patience to hold for 3 months; ④ Most people are just pretending to be diligent and thoughtful; ⑤ Only buy raw stocks, not mature ones; ⑥ Overconfidence when buying, excessive panic after buying; ⑦ Technical stop-loss; ⑧ Pursuit of certainty and precise entry points; ⑨ Fragmented knowledge; ⑩ Relying on intuition to trade stocks.
Why is it so difficult to make money in the stock market? The three fundamental laws of investing: ① It’s very difficult for newcomers to get rich in an ancient industry; ② The lower the industry’s entry barrier, the lower the profit; to survive in low-barrier industries, you must be the first to take the plunge; ③ The stock market is a zero-sum game.
In fact, he emphasized several times in the PPT that if you’re not suited for stock trading, you can choose not to participate or invest in index funds regularly.
Besides the stock market, life also has poetry and distant horizons.
Download "Making Money in Stocks_Extension Lecture on Earthquake Theory at Peking University.PDF"
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