Analysis Of Five Common Mistakes Made By Retail Investors In Stock Trading

Soros explained in his book Soros on Soros: "For others, making mistakes is a source of shame, while for me, realizing my own mistakes is a source of pride. Making mistakes is not terrible, but the terrible thing is not to correct them."

To be ashamed, the author has also made mistakes in the process of operation. These mistakes have seriously affected his own earnings. The following are the situations I encountered in the stock market before. Taking the right as a lesson from the past. Self encouragement also reminds the majority of retail investors to pay attention:

1、 Love bottom copying.

Shareholders have such a psychological characteristic that if the cost of building a position is lower than others, they always think they have taken advantage of it. In fact, stocks that have hit a new low or even broken down will be even lower if they are lower. Even in a bull market, stocks that have not been properly adjusted in the bull market cannot be bought.

2、 Unwilling Stop loss 。

There is an inelegant term for stop loss cut meat Cutting meat is painful. Once a piece of meat is cut off, even if it grows back, it is also a eye-catching scar. In today's beauty loving society, it is really uncomfortable to grow a scar. But imagine that if we are accidentally bitten by a poisonous snake, we can live by digging out the bitten meat, otherwise we will have to wait for death. So what should we do? Some retail investors saw the stop loss and the stock price rose again a few days later. Next time, they took a chance to stop loss, which often resulted in heavy losses. "Cut off losses and let profits run" is the wisdom.

3、 Likes to predict the market.

When the bull market was the craziest, the streets were full of "stock gods". Many people predict that the overall market is like a figure of eight, with the number of points at the top and bottom of the market being quite specific. However, it is difficult to predict the index with technical analysis. Even if the prediction is accurate, there is no substantial significance for the operation of individual stocks.

4、 Can buy but can't sell.

As the saying goes, "Those who will buy are apprentices, those who will sell are masters, and those who will empty are grandfathers.". It's easy to buy stocks. The key is to sell. If you buy a stock for 10 yuan, do not sell it when it rises to 11 yuan. You hope it will rise to 12 yuan, 13 yuan or even 20 yuan. It turned out to be the opposite of what you expected. 11 yuan just skimmed the water, and immediately fell to 10 yuan. You won't throw it away. You will think that you didn't lose money anyway, and maybe it will rise again tomorrow. As a result, your stock fell to 9 yuan. You won't throw it because you think it will bounce back to 10 yuan. However, fate played a trick on people, and your stock fell to 7 yuan. Now if I kill you, you won't throw it away. The reason is simple: "I lost money and will rise one day." We squeeze out our market value like a sponge in the "greed, fear and numbness".

5、 Desperate for food, desperate for high.

After a wave of adjustment, once the market moves upward, it will buy without thinking shares No matter whether the adjustment is in place or not, it does not depend on which sectors and individual stocks are leading the rise. The result is either a quilt or a meager profit.

Those who can recognize their own mistakes are brave. They can change their mistakes. Our goal is not to uncover our own scars for others to see, but to fully understand their own mistakes and find ways to correct them. Investing in the stock market is a hard but fun thing. The stock market has achieved a large number of people and destroyed many people's dreams. When the waves wash the sand, through the precipitation of time and the baptism of ups and downs, brave people are naturally fearless, while hypocritical people are naturally invisible. Only those who have changed can dance with the stock market.

It's painful to deny yourself, but it's like turning into a butterfly. Only when you become a "butterfly" can you face the storm of the stock market more calmly.