Why is frequent stock swap unreliable? Practical skills

Many friends like to do ultra short term trading because if caught correctly, short-term profits can be made quickly. Like some short-term star stocks, they skyrocketed by more than 20-30% in just a few days. So, everyone is thinking that if we can grasp every short-term rhythm well, making big money is as easy as flipping hands.

Therefore, everyone is trying their best to operate frequently, frequently swap stocks, and speculate frequently. However, this world is somewhat strange. The more one wants to achieve and the more one desires, the more difficult it is to achieve and obtain. The result is always the opposite, the more you want to make quick profits, the faster you lose.

Why? Because speculative markets play a psychological game, challenging people's psychological limits with intense fluctuations and repeated twists and turns. So, many people are always tempted by the market to buy during high price surges due to greed, and during low price drops due to fear, they are constantly cut off by panic and sell off cheap chips. And during the repeated consolidation and turmoil, it was shaken out due to impatience, and as soon as it went out, it quickly rose. In short, whether it's a sudden surge, a sharp drop, or a prolonged period of repeated consolidation, they are all playing psychological warfare. If you are psychologically fragile or too greedy, it is not suitable to mix in this market.

In fact, the number of operations and error rate are directly proportional. The more operations, the greater the psychological fluctuations, and therefore the greater the errors. Everyone may feel that many times, some stocks tend to fall as soon as they are bought and rise as soon as they are sold, basically going in the opposite direction of their own operations. It is also a psychological tactic for stock price fluctuations.

So, the best way to survive in a market dominated by psychological warfare is to remain calm, patiently wait, and not compete with others. Competition cannot be won, it should be noted that in any market, a few people always make money for the majority. If everyone could think of it and do it, then the market wouldn't be played with like that. On the contrary, often times it goes in the opposite direction. So often it is necessary to operate against the trend. Operate against the crowd. Many times, the dumbest method is the best method.

For example, if you insist on holding shares, no matter the storm or thunder and lightning, you will remain calm and stable. Many times, it is necessary to achieve: having stocks in hand, having stocks in mind, having stocks in mind, and having stocks in hand.

Don't worry about the overall market sentiment, in structured markets, many stocks are not synchronized with the market. During this period, several stocks that I have repeatedly talked about in my blog posts and on Fu Lei Net have been extremely strong. A few stronger stocks have risen by about 30%, becoming independent bull stocks in the midst of the market crash. There are also a few that hit the daily limit up today. So besides patiently waiting, there is no great trick to investing.