New investors are often insensitive to changes in trends, and if they are trapped, they are generally unwilling or unable to cut losses promptly and decisively. So, when new investors enter the stock market, they still need to adopt some cautious investment methods, such as estimating the risk return ratio. When the investment risk of a stock is far greater than the expected return, they should not blindly invest anymore; When the stock index is oscillating at a high level, the stock position should be reduced; For stocks that you are optimistic about, do not limit yourself to achieving a certain profit target, but adapt to market conditions. In a bull market, most investors make money, but when the bull market ends, there are always some investors who have to pay for the feast of the bull market. There are several main reasons for investors' losses: firstly, greed; secondly, panic; thirdly, impatience; fourthly, regret; fifthly, failure to correct mistakes in a timely manner and missing the opportunity to sell in procrastination. In fact, whether it is new investors or old investors, if they can overcome these five human weaknesses, they can naturally prevent market risks. In addition to controlling risks psychologically, it is also necessary to control risks operationally. In a bull market, many investors operate at full positions, selling a certain stock at a profit and immediately buying other stocks. Their funds are never idle, and their stock accounts are always filled with various stocks. In this case, once there is a market adjustment or individual stock volatility, there will be significant risks. Adjustments in the stock market are common, and choosing the right stocks is also important. Even when the market is declining, there are still stocks that have reached their limit up. If you can hold high-quality blue chip potential stocks, it can play a role in resisting risks. Preventing risks also requires learning to give up. There are countless investment opportunities in the securities market, but investors have limited time, energy, and funds, and it is impossible to seize all investment opportunities. This requires investors to make choices by weighing the importance and urgency of various investment opportunities, the size and priority of hot topics, and other aspects, and selectively giving up small investment opportunities in order to seize larger investment opportunities while reducing risks. How to avoid risks through position control Good position control skills are powerful weapons for investors to avoid risks. In the stock market, investors can only effectively control the further expansion of risks and seize opportunities to turn losses into victories by attaching importance to and improving their position control skills. In a weak market situation, investors must pay attention to the following points: 1、 Position ratio In a weak market, it is necessary to appropriately reduce the proportion of holdings, especially for investors with heavy or even full positions, to seize the opportunity of a brief rebound during the market downturn and sell some shallow individual stocks appropriately. Because in the continuous breaking down of the market, investors with excessive positions will inevitably suffer greater net asset losses than those with lighter positions. The irrational plunge in the stock market can also create strong psychological pressure on fully invested investors, thereby affecting their actual operations. Moreover, there are many uncertain factors in a bear market, and it is not suitable to fully or heavily position before the overall market development trend improves significantly. So, for some stocks that are currently shallow and have limited upward potential in the future, it is necessary to decisively liquidate positions. Only by maintaining sufficient reserve funds can one cope with bear markets with ease. 2、 Position Structure When the "bear" atmosphere permeates the stock market and both the overall market and individual stocks perform a series of "high platform dives", investors should not be scared by the panic inducing appearance of the stock market. The irrational continuous breaking and plummeting in the falling market is a favorable opportunity to adjust their position structure and retain the strong while eliminating the weak. You can sell some stocks that are inactive in nature, have large plates, lack themes and imagination space at high prices, and choose some stocks that have new positions, may evolve into mainstream sectors and leaders in the future to buy at low prices. Never ignore this operational method, as it will be a key factor determining whether investors can turn losses into victories or outperform the market in the future. 3、 The technique of dividing warehouses in weak markets When market trends are uncertain, it is not advisable for investors to operate at full positions. At the same time, the absolute short position operation behavior of investors is even more wrong. The key is to master the skills of dividing positions in position control: 1. Depending on the size of their financial strength, those with more funds can appropriately diversify their investments; Adopting diversified investment operations with limited funds can easily lead to an increase in transaction fee costs due to fixed transaction costs. When the market reaches the end of a bear market, stabilizes and shows signs of improvement in trend. For strategic replenishment or bottoming out buying operations, it is advisable to diversify investments and select stocks from several sectors that are most likely to evolve into hotspots in the future. 3. According to the stock selection strategy, if selecting stocks based on investment value is a long-term strategic buying, a diversified investment strategy can be used. If selecting stocks solely from a speculative perspective for short-term trading or for intraday "T 0" ultra short term operations targeting trapped stocks, a diversified investment strategy cannot be adopted. Instead, a strategy of concentrating forces and breaking through each individual stock must be used, and one stock must be carefully managed each time. 4、 Position allocation skills for strong markets When the market is in a strong upward trend, investors must pay attention to mastering the following key points of position control to improve investment safety. 1. Investors should invest one-third of their funds in chasing and speculating on the rise of strong stocks; 2. Participate in medium to long-term stable investment in potential stocks with one-third of the funds; 3. Leave 1/3 of the funds as backup funds to be used in case of abnormal changes in the overall market; The most suitable proportion of capital investment in a strong market should be controlled within 70%, and appropriate monetization operations should be carried out as the stock price continues to rise. Risk control techniques in bull markets Stock market risk exists not only in bear markets, but also in bull markets. If you don't pay attention to avoiding the hidden risks in a bull market, you will still encounter losses even in an uptrend. In a bull market, the first step in stock trading is to establish the awareness of stop loss and stop win. Some investors believe that stop loss is a bear market strategy and that a bull market does not require stop loss, which is a misconception. In fact, a bull market also requires a stop loss. When a stock shows signs of peaking, or when holding non mainstream varieties or stocks that have fallen against the trend, a stop loss is necessary. Especially when there are significant changes in the market environment such as fundamentals or when investors make major mistakes in their market analysis, it is even more necessary to have the determination to cut off one's arm. Secondly, it is important to pay attention to adjusting the position ratio. In a bull market, it is necessary to make appropriate adjustments to the position ratio in a timely manner according to market changes, especially for investors with heavy positions or even full positions. They should seize the opportunity of the short-term rapid rise of the market and sell off some profitable individual stocks appropriately. Reserve a certain amount of reserve funds to cope with the impact of uncertain factors in the bull market. The third is to optimize the investment portfolio. By continuously adjusting the position structure and optimizing the investment portfolio by retaining the strong and eliminating the weak during a bull market, not only can ideal investment returns be obtained, but also the risks brought by bull market bear stocks can be effectively avoided. The fourth is not to put all your eggs in one basket. When the market stops falling and stabilizes, and there are signs of a trend improving, for medium - to long-term buying operations, it is advisable to diversify investments and select stocks from several sectors that are most likely to evolve into hotspots in the future. This is an important method to control non systematic risks in bull markets. Finally, we must adhere to the principle of safe investment. In the operation of a bull market, we must follow the principle of "one stop, two looks, three passes": 'Stop' refers to the cessation of blind buying and selling operations. Many investors are worried about going short in a bull market, but this concern is unnecessary. The stock market always has opportunities, especially in a bull market where the formation, development, and completion of an upward trend do not end overnight. Therefore, investors do not need to worry about going short. 'Look' refers to selecting stocks. Nowadays, with the increasing number of stocks, the speed and magnitude of the rise of various stocks in bull markets are different. If you don't select the real hot stocks, you will miss out on the great bull market like I used to buy Nanning Department Store. 'Passing' refers to buying stocks, which requires attention to timing. In a bull market, it is advisable to chase the rise, but when chasing the rise, it is important to have a clear understanding of the trend, be familiar with the stocks preparing to chase the rise, and pay attention to changes in the market. This is the only way to effectively avoid risks and seize opportunities.