What is the reason for buying ten stocks and losing nine stocks?
There are two sentences in the stock market. The first sentence is that the stock market is 7 losses and 2 draws 1 profit, and the second sentence is that ten stocks are 9 losses. It can be seen from these two sentences that it is not easy to make money in the stock market, and the probability of making money in the stock market is very small. According to these two sentences, only one tenth. So, why is this happening? Where are the reasons for the loss of nine out of ten stocks? I summarized the following points:
First, the stock market investors have a large base but are not professional.
We all know that there are many ways to invest in financial management, such as funds, foreign exchange, stocks, futures, etc., but we must know that among all these investments, the number of people who participate in stock investment is basically the largest. Because the stock investment threshold is relatively low, as long as you have the money to buy first-hand stocks, you can speculate. Some stocks are as low as one yuan, that is, 100 yuan can be traded. Therefore, basically everyone can stock, but there is no professional knowledge as a support, and few people have professional knowledge, so there are more people who lose money in stock trading. People with stock expertise are unbalanced in the stock market. For example, a person who has never studied martial arts competes with a person who has studied martial arts for decades. Do you think a person who has never studied martial arts can win?
Second, the risk nature of the stock itself determines.
When we say that the probability of making money in the stock market is small, in fact, most of us are comparing with other financial management methods. For example, fund investment and stock investment, the risk of fund investment is less than stock investment, so the probability that fund investment can make money is greater than stock investment. Of course, what we are talking about here is the probability of making money, not the expected income. For another example, compared with national debt, stocks are definitely easier to make money from the stable income of national debt than stocks. So there are very few people who make money from stocks, partly because of the risk of stocks themselves. Compared with other fields, the probability that stocks can make money is definitely less than other relatively less risky investment methods.
Third, the general environment of the stock market determines it.
When the stock market environment is not good, most stocks are in a state of decline, and only a few industries can stabilize the stock price, so most of them are losing money.
Fourth, it is caused by personal psychological emotions.
There are two kinds of psychological emotions here, one is impulsive when investing, unable to control himself, with strong subjective factors, like chasing up and down and gambler psychology. Another is that as long as you don't make much money after investing, you will definitely lose money. Even if you make a small profit, telling others is also a loss, which will lead to misunderstanding.
How can stocks make a profit?
No one can 100% guarantee how to make profits in stock trading. All our analysis methods are only to improve the probability of making money and reduce the risk of our investment. Therefore, we should think rationally, try to avoid the influence of subjective factors, formulate reasonable investment strategies, and strictly follow the standards of investment strategies. Learn fundamental analysis, technical analysis and news analysis, make value investment as much as possible, and avoid short-term speculation.