Recently, there has been a significant adjustment in the stock market, from a high point of 3295 to 3016. Many stocks have fallen below the price at the low point of 2638, and many investors have suffered heavy losses. Why do most investors always lose money every time the market falls?
Every time an investor loses money, they always have the following characteristics:
1: Against the trend
Stock trading must follow the trend. As the saying goes, if you sail against the current and do not advance, you will retreat. The same goes for stock trading. Going with the flow "refers to the long-term moving average trend of the market showing a bullish pattern. In such a market situation, as long as it is not a junk stock, there is still a high probability of making money by entering the market at the right time!
But most stock investors often forget this sentence, thinking of buying the bottom when the stock falls, only to end up buying halfway up the mountain and being trapped for months or even years. The recent sharp decline has led many investors to act against the trend, resulting in massive losses.
2: I only love the short term
As long as you are a stock investor, you will think of bull stocks in your heart, imagining that one day your super bull stocks will rise by 300%, 500%, or even 1000%!
However, apart from the recent super concept of Teli A and Xiong'an, how many stocks have such a trend? Even if there are, can your short-term thinking be guaranteed to hold onto them? Which bull stock didn't experience such a rise after several months or even on an annual basis?
3: Always operate with full inventory, never empty inventory
Many investors, no matter how much money they have invested in stock trading, keep trading hard every time. Then, as the stock market falls, their account losses become increasingly large. They cannot bear to cut their losses, and if they do not cut their losses, they will immediately expand. When the market rebounds, they will have no funds to do T, and in the end, they can only cut their losses with blood.
There are also some investors who would rather be trapped every day than have no stocks in their hands for a day. If there are no stocks in their accounts for two days, they will feel uncomfortable all over. As long as they buy stocks immediately, even if they lose money, they will still feel comfortable both physically and mentally. The result can be imagined, and they will continue to be trapped.
4: A large number of various stocks
Don't put all your eggs in one basket. This is an investment truth, but many investors are deeply affected. When you open their accounts, most investors have a small number of stocks, ranging from three to five, to many seven or eight. Perhaps one of them has made a profit, but none of them can offset the losses of other stocks.
And many investors with small amounts of funds also have seven or eight stocks in their accounts, which means they contribute a considerable amount of tax revenue to the country every year. After a year, your cost is much higher than other investors.
5: Too greedy, don't know how to take profits
A large portion of investors have this idea: "Today's trend is good, and tomorrow it will continue to rise, not in a hurry." As a result, they opened lower the next day.
In the stock market, always remember one sentence: Money that doesn't go into your own pocket is not yours. Greed is something that many people have, but you need to learn a lesson from it and understand that contentment is the key to happiness.