Analysis of the reasons why it is easy to lose money when buying stocks

It is not easy to make money in the stock market. The probability of making money in the stock market is very small. Many novices try to trade in stocks and end up with losses in the end. as an ending. The following is the reason why it is easy to lose money when buying stocks. I hope it will be helpful to you!

The reasons why it is easy to lose money when buying stocks

First, the base of stock market investors is very large But it is caused by lack of professionalism

We all know that there are many ways to invest and finance, such as funds, foreign exchange, stocks, futures, etc., but we must know that among all these investments and finance, participation The number of people investing in stocks is basically the largest. Because the threshold for stock investment is relatively low, as long as you have the money to buy one stock, you can trade stocks. The price of some stocks is as low as one yuan, which means you can trade stocks with just 100 yuan. So basically everyone can trade stocks, but there is no professional knowledge to support it. There are very few people with professional knowledge, so there are more people losing money in the stock market. People with stock expertise are out of tune and unbalanced in the stock market. For example: If a person who has not studied martial arts competes with a person who has studied kung fu for decades, do you think the person who has not 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 come to the conclusion by comparing it with other financial management methods. For example, between fund investment and stock investment, the risk of fund investment is lower than that of stock investment, so the probability of making money in fund investment is higher than that of stock investment. Of course, what we are talking about here is the probability of making money, not the size of expected returns. For another example, compared with stocks and treasury bonds, the probability of making money with stable returns from treasury bonds is definitely greater than that from stocks. Therefore, few people make money in stocks. Part of the reason is due to the risk nature of stocks themselves. When compared in the same field, the probability of making money in stocks is definitely lower than other investment methods with relatively small risks.

Third, it is determined by the general environment of the stock market

When the general environment of the stock market is not good, most stocks are in a state of decline, and only a small part of them are in decline. The industry can stabilize the price of stocks, so most of them suffer losses.

Fourth, caused by personal psychological emotions

There are two situations of psychological emotions here. One is that one is more impulsive and unable to control oneself when investing, and subjective factors are more important. Strong, likes to chase the rise and fall, and has a gambler's mentality. Another way is that after the investment is completed, as long as there is no big profit, it will be a loss, and even small profits will be a loss. When talking to others, it will be a loss, which leads to misunderstandings among people.

Which is more risky, funds or stocks?

Generally speaking, the risk of stocks is greater. The main reasons are as follows:

1. The fund manager is responsible for managing the investment. The fund manager is more professional and has a professional team to conduct tracking and research to support decision-making. Therefore, the investment decision-making of the fund manager is more rational.

2. As for stocks, most of the stocks are invested and traded by us personally. Most stock investors do not have professional knowledge and are not very professional. Investment decisions tend to be emotional and they will blindly step on them. pit.

3. A fund is a combination of various financial products, and the risks are relatively dispersed. The decline of one financial product will not affect the overall situation, and it will have a risk hedging function. But stocks are relatively single. Once the stock price drops, you will lose money and the risk is concentrated.

How to reduce the risk of stock trading

Don’t invest too much money in stock trading. Give priority to stocks with lower prices. If you invest less money, the risk will be relatively reduced, such as Said: When buying stocks worth 10,000 yuan or buying stocks worth 100,000 yuan, the risk of buying 100,000 yuan worth of stocks is definitely higher. If you only buy 10,000 yuan worth of stocks, the risk will be relatively smaller.

In addition, when trading in stocks, you must analyze the stock’s fundamentals, news, K-line charts, etc., and always pay attention to your own stocks. When the stock falls a lot, you must Learn to stop losses, and when stocks make money, learn to stop profits.

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