Firstly, it is important to pay attention to the research and assessment of the overall market. Many retail investors have not systematically studied stock trading behavior, and their trades are too casual and frequent. They ignore long-term tracking and research on the overall market and sectors, and tend to rely on others' recommendations, hoping that the stocks recommended by others can all rise. However, this is not comprehensive. It is important to understand the reasons for others' recommendations, how they study them, why they choose to buy, and how the rise and fall of the overall market affect sectors and individual stocks. So individual investors buying stocks must ask a few more questions about why.
Secondly, it is important to pay attention to the buying price, stop loss price, position entry, and take profit price. This will enable you to buy a stock with ease and control over its fluctuations.
Thirdly, many people, including myself, make a fatal mistake of frequent trading as mentioned earlier. The frequent trading results in the continuous expansion of losses caused by stop loss, with losses increasing on a weekly, monthly, and quarterly basis. Due to their own weaknesses such as discipline and self-control, retail investors must be cautious in their operations, and they do not have time to track multiple stocks for a long time. Therefore, it is best for beginners not to operate too many stocks and frequently switch stocks for trading, otherwise they will die tragically.
Fourthly, it is necessary to establish your own trading system and principles. Firstly, you must learn some simple technical things, such as reading the market timing, K-line structure, understanding the hourly average price line, quantity and performance indicators, swing indicators, and price indicators. Only by simply understanding and familiarizing oneself with the use of these indicators can one have a basic guarantee for operating and establishing one's own trading system..
Fifth, after having one's own trading system and principles, the main focus is on delving into the overall market, sectors, and individual stocks. To study individual stocks, it is necessary to delve into various indicators such as financial status, subject types, chip distribution, various K-line combinations, changes in market capitalization, and capital flow. After long-term observation, the success rate of studying the "stock nature" of stocks will increase, and conversely, the probability of failure will increase.
Sixth, execution must be firm. Every investor who can make a profit in the market has one thing in common: setting goals and resolutely implementing them. Keep being yourself! Never rely on others, because you are different from them in terms of abilities, experience, knowledge, funds, mentality, etc. The operation is naturally different. Stick to your own plan and principles, and naturally you will have a greater chance of winning in chess.
Seventh, mindset determines whether you can succeed. The so-called mentality is not a dead pig who is not afraid of being scalded by hot water, but a calm and objective attitude from the beginning, objectively viewing the ups and downs, objectively observing one's own operations, being calm and unhurried, persisting in one's previous repeated judgments, accepting obvious mistakes, changing operational errors, giving up when the market is not good, being bold when the market is good, not being discouraged by operational mistakes, not being proud when making money, and not being sluggish when losing money.
Eighth, control emotions. We often have inexplicable actions in our daily lives. The stock market is also an integral part of economic life, and controlling emotions during trading can help you achieve the goal of having stocks in your hands but not in your heart, or having stocks in your hands but not in your heart.
