Is it the advantage of capital, the asymmetry of information or the weakness of human nature? This question is something we must ask.
There are three main reasons for the loss:
First, retail investors do not understand the rules of the game in the capital market.
Secondly, retail investors bought "toxic" assets.
Third, the weaknesses of retail investors themselves.
1. What are the rules of the game in the capital market?
Let's make an analogy like this: A shares are a "fund pool". Many people want to make money in it, but the capacity of this pool is relatively fixed. IPO is drawing blood from the "fund pool"; Because of its low cost, the "size and size" in A shares were sold in large quantities to obtain excess returns when the ban was lifted, which also drew blood from the "fund pool";
Part of the tax revenue of the exchange "draws blood"; Commissions and service fees of financial institutions such as brokers and consulting institutions are also divided into part of the fund pool; Finally, most retail investors like to do "high-frequency trading" and do short-term habits.
In the case of stock funds game, plus insurance funds, pension funds, public offerings, private placements, QFII, hot money and other institutions, all the above parties want to make money in this "fund pool". This is a game of the capital market, which is what our users need to know.
Second, love to buy "toxic" assets.
Assets are divided into three categories: high-quality assets, ordinary assets and inferior assets.
The first is high-quality assets, which do not tell stories, make themselves bigger and stronger, and enhance the stock price value, such as Vanke. Political economy believes that the price fluctuates around the value, and high-quality enterprises enhance their intrinsic value, so the stock price of external performance will inevitably rise with the increase of value.
The second is ordinary assets, "zombie enterprises". The share price of such enterprises usually "goes with the flow", and the share price fluctuates with market fluctuations.
The third is inferior assets. Enterprises are getting worse and worse, and even have to withdraw from the market, such as Xintai Electric.
Many A-share companies like to tell stories, and retail investors also like to buy these "news theme stocks", but when investors "reduce their holdings at a high level", they are still hurt by retail investors who have become "problem solvers".
Third, its own "weakness"
Attracted by the money-making effect of the bull market, the bull market is coming. When you run into the market and hear what "news" your friends have, you won't control a large number of positions to buy. I didn't know it was the second half of the bull market when you entered the market, and the theme had been consumed. The prophet is waiting for you to take over.
For the above three reasons, investors always lose money and cannot obtain long-term stable profits. So, what can be done to avoid the state of "always losing money"?
Two suggestions:
First, choose high-quality assets;
The second is low-frequency trading, which uses valuation methods to buy at a low level.