Why do individual investors suffer huge losses in stock trading?

2. Be impulsive and immediately sell stocks with good performance. Buying stocks depends on fundamentals. More investors are no longer satisfied with listening to news and buying stocks based on technical lines, but hope to invest more rationally. Understanding the fundamentals of stocks is one of the important tasks when selecting stocks. However, for non professional individual investors, understanding the fundamentals is not as simple as they imagine.

4. Better a small drop than a long one. Watch the ups and downs of the stock market every day, and if the stock price drops slightly, sell the stock immediately. Although this approach may seem to avoid the risk of being deeply trapped, investors using this method of operation find it difficult to obtain profit opportunities. Continuously cutting meat increases investment costs and may also mistakenly kill "high performing stocks", missing out on investment opportunities.

6. Do not buy high priced stocks. Many investors are afraid to buy high priced stocks. I feel that stocks are often priced at 50 yuan or even higher, so I dare not touch them. On the one hand, I feel that my capital is small, the stock price is high, and the quantity I can buy is too small, so the probability of making money is small. On the other hand, I also feel that high priced stocks have already risen so much, and if they fall, it will cost a few yuan or even ten yuan to go down, and the risk is much greater than low-priced stocks.

8. Listen to the news. In the hot bull market, those who once relied on listening to news and gained a lot of profits may not be able to accept this advice at all. Especially for some investors who have been trading directly on the exchange for a long time, they almost do not consider any other methods besides news. What's even more absurd is that even if they lose money after hearing the news, they don't think this method of listening to the news is wrong, but rather believe that the source of the news is not accurate enough, and they will pursue more accurate news next time instead of giving up this wrong method.