My trading record (2021-12-03, bought HK stock Alibaba)

Abstract: Explain the reasons of buying HK stock Alibaba Group and share my views.

Transaction detail

What I want to share with you today is the transaction I made on December 3. The details are as follows:

Bought stock

• Alibaba Group Holdings Ltd (HK stock code: 9988)
• Quantity: 100 shares
• Bought price: HK$119.2
• Commission fee: HK$37.42

Reasons to buy 9988

Today, Alibaba’s share price plunged again and hit a record low again, falling to HK$116. Although Alibaba’s stock price is yet to find its bottom, it is not clear when it will reach the bottom. In fact, no one will know in advance. Only when it really rebounds finally you will then know when and what price would be the bottom. So as an investor, you don’t need to waste your energy to predict the unpredictable outcome, you just have to ask if you think you have confidence in the company’s long-term development. If so, then the lower the price, the better chance you get to accumulate your wealth. Of course, you may have misunderstood it, so the best thing to do is still the same old strategy that you have to balance your portfolio and properly diversify and you should regularly check whether the company has deteriorated. Though I understand that many people say that Alibaba today has deteriorated, but I think that Alibaba today with stock price of HK$116 is in fact not so different from last year’s HK$300 Alibaba company. I understand that the general environment in terms of policy seems to be quite different, but in fact, external factors are changing all the time. It is impossible for a company to develop smoothly all the time without experiencing any downturns, a more often scenario should be like they encounter various difficulties from time to time, but I think Alibaba is still a leader in multiple fields and still has the ability to adapt to these different external factors, it just needs to take time to make adjustments and do what they should do.

Regarding the stock price, I would like to add one point that is the pendulum effect. Just like Ark Invest last year that after their stock price rose to a high level last year, many people still believed that it would continue to set new highs at the beginning of the year, but in the end it just made many people disappointed that the stock price just went down and down. The conclusion is that it is impossible to keep moving in one direction. Therefore, on the contrary, many people think that Alibaba’s stock price has repeatedly hit new lows this year and will continue to fall next year. First HK$100, then HK$80, HK50… But I believe things will be reversed, especially if Alibaba is really not that bad as many people think, then it will rise again in the end. So I believe the probability of rising is higher than declining next year after the all-the-way down trend this year. Of course, the prerequisite condition is that Alibaba’s future development needs to be bright.

Comments and sharing

If you have any questions, please feel free to leave a message or comment below, I will reply you. Or if you find anything incorrect in the article, please let me know and learn from you. If you find it interesting or it may help you in any sense, please share with other people.