Hello, the first way for retail investors to lose money is to buy the wrong stock and plan to buy a very high-quality company. However, because I didn't have the ability to find high-quality companies, I couldn't tell which companies were high-quality and which were inferior, or I bought one at random after listening to other people's news. As time goes by, the company is getting worse and worse, which will lead to worse and worse performance of the stock price. This is the first way for retail investors to lose money.

The second way for retail investors to lose money is that even if they buy the right company, the price is too high. For example, we all bought big bull stocks in the later period, but because the price is too high, they may not make money for a year or two, which leads to an unbearable long adjustment process and sells them. Although the stock price has risen n times, in fact, this increase has nothing to do with you. Of course, there is another condition. It is because there is no patience and no time to grasp it. These two factors are the same. Even if you buy a very good company, the share price of this company has risen many times, but it has not made any money.

Summarizing the two ways of retail losses actually tells us a very simple and practical truth, that is, first, we must be able to choose high-quality companies, and second, we must be able to judge the reasonable prices of companies. Only by doing these two things well can we make money and enter the stock market to make money. These are two necessary conditions and minimum requirements. If you can't do these two things well, it is inevitable to lose money again.

Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.