After entering the stock market, many small and medium investors lose money. This can be said to be one of the reasons why a novice stocks trader loses money. Mostly when you see the stock rising, you buy it, and you don’t know what to do when it falls in the later stage. Selling when the bottom appears, you can use four words to describe it, that is, chasing the rise and killing the fall. About trend analysis, I have introduced how to look at the long term trend of stocks. The reason for this loss is common, so let's look at other reasons.
1. No stop loss:
Usually, after buying a stock, it does not correct the mistake when it is wrong, and keeps holding it. However, the stocks that are often bought because of chasing the rise usually fall, and the fall is still relatively large. There is often a situation of deep arbitrage, wrong the original market conditions, and will not carry out reasonable unwinding behavior in the later period, that is, holding stocks and waiting for unwinding, some stocks that are often pulled up will take a long time to unwind later.
2. Frequent transactions:
If a stock does not rise for two or three days after it is bought, it will immediately go out and buy other rising stocks, and repeat the process of buying a callback quilt again. At this time, if the previous stocks are found to have risen, it means that the buying rhythm is wrong and there is no patience. If it were not for the restricted delivery system to be t+1, it is estimated that it would be replaced several times a day.
3. Full warehouse operation:
Whether it is a bull market or a bear market, whether the market is bad or the market is good is a full position operation. This is not right. Short positions or lower positions are necessary when the market is not good. Full positions every day will result in losses. No matter how high the technology is in the stock market, when there are errors in the market, the pressure of undivided positions will force investors to make mistakes with greater probability.
4. Read too much stock news:
If you don't judge or won't judge these news, you will lose money when operating stocks. Once everyone in the market is talking about peaking.
There are many other reasons why novices lose money in stock trading. What should we do in this situation?
- To operate in the stock market, you must have your own operating methods and disciplinary guarantees. It is not possible to blindly chase the rise and kill the fall. Once the time is extended, this operation will only be out of the stock market after the stock market leaves the money behind. In addition to methods, there is discipline. It is still useless if a plan is made and not implemented.
- To understand the basic knowledge of the stock market, whether it is K-line, K-line technical indicators, these must be inevitably learned. After learning all the columns of stock introduction, stock terminology and stock knowledge, it will inevitably be a different situation up.
- Constantly sum up the reasons for their losses, whether it is the issue of stock selection or the control of buying and selling points when buying and selling, position allocation, etc. Or the mentality that rises and falls with the market.
- Everyone has different personalities. Find out what suits your own operating style. It doesn't matter if you chase the daily limit, you can also operate in the long term, and you can make money in the band.
New stock listing:
Before issuing stocks, the issuer needs to send various documents and reports to the securities transaction management agency in accordance with the law. It is a system. The documents and information that need to be issued must be published in time and sent to the subject agency for inspection. This is a process that must be experienced under the registration system. However, the subject agency is only for review and does not make substantive judgments.
So what is the impact on retail investors?
After the registration system, there will be more new stocks listed, making it easier to go public, reducing the importance of shell resources, and reducing the valuation of listed small and medium sized stocks. Retail investors prefer small and medium sized stocks, so many people think that the implementation of the registration system is unfriendly to retail investors. The issuance of the registration system will reduce the number of retail investors. In developed countries, the ratio of small and medium investors to institutional investors is 3:7. After the registration system, a large number of new shares will still be listed for financing.
It may break the high premium of small cap stocks, the market valuation will not be too high, and it will gradually return to rationality, the market will become more professional, and the space for speculation will become smaller. This will impose higher requirements on institutions and retail investors in the market. Many retail investors find it difficult to make a profit and will choose to withdraw from the market. The implementation of the registration system actually allows more retail investors to enhance their strengths and exercise themselves. They can both avoid problematic stocks and tap potential stocks. Therefore, retail investors must be cautious and not blindly speculate on new ones.