Why retail investors chase the rise and kill the fall and avoid it
Why do retail investors chase the rise and kill the fall? The stock market is a place full of opportunities, where a large number of investors seek wealth every day. However, many retail investors in the stock market suffer losses. One important reason is that they like to chase the rise and kill the fall. So why do retail investors chase the rise and kill the fall? How to avoid it? The editor has prepared relevant content for your reference on why retail investors chase the rise and kill the fall.
Why do retail investors chase the rise and kill the fall?
1. Retail trading is easily affected by emotions. When the market rises, retail investors may blindly chase the rise because they don't want to miss the opportunity, hoping to make more profits. And when the market falls, retail investors may rush to sell stocks out of fear of losses, hoping to avoid losses. Driven by this emotion, retail investors easily fall into the misunderstanding of chasing the rise and killing the fall.
2. There is information asymmetry in the stock market. Due to lack of professional knowledge and market insight, retail investors are easily affected by media reports, market news, etc. When the market is booming, the market is filled with some false or exaggerated news, causing retail investors to be misled and blindly chase the rise. When the market is in a downturn, some maliciously spread rumors or pessimistic forecasts will also trigger panic selling among retail investors.
How to avoid it?
1. Adopt a long-term investment strategy. Chasing the rise and killing the fall often occurs when pursuing short-term investment returns. Investors should make investment decisions based on the company's fundamentals and development prospects, rather than being swayed by short-term market fluctuations. When buying stocks, set reasonable take-profit and stop-loss levels, and take decisive action when the stock price reaches the preset price to avoid emotional trading.
2. Learn investment knowledge. Retail investors should pay attention to learning more stock investment knowledge, such as fundamental stock analysis and technical analysis, to improve their stock selection and risk control abilities, summarize their own investment methods, and avoid blindly following the trend of investment.
3. Diversify your investments. Investors can diversify their funds into different industries and different types of assets and adopt a more diversified investment strategy. Avoid concentrating all your funds on a few stocks, which can also reduce the risk of chasing the rise and killing the fall.
Why retail investors chase the rise and kill the fall
The first principle: See the volume before advancing.
The second principle: Don’t chase highs. You can use the Bagua box theory to place an order at a strong resistance level that has just been broken through. You should observe the first waveform after the market opens. When the market pulls back, the order will be filled just in time. If there is no pullback, but it goes all the way up, and directly closes the daily limit by a huge amount, then catch up on the daily limit board.
Principle 3: Never run out of money. The full position standard is set at a maximum of 85%. The reason is that there are good stocks every day. If you are optimistic about the stocks without cash, you will not have the money to buy them. Even if you want to buy them, you cannot buy them.
Principle 4: Set a stop loss price. Not all are successful in the short term. When you make a mistake in judgment, you must leave the market resolutely. Stop loss is to use small losses to gain the opportunity of big profits. In the stock market, available funds are always more valuable than the market value of the same amount of securities.
The stock market operation cannot get rid of the reason of chasing the rise and killing the fall. In fact, it is very simple to say, because this is a problem of mentality, because many people have inertial thinking and believe that the stocks that rise today will definitely rise tomorrow. , so this action is the so-called chasing the rise, and it will form a cycle of chasing the rise and killing the fall, because when you see other people's stocks rising, but your own stock does not rise or suffers a small loss, you immediately cut off the stocks in your hands. Go after the idea of ??stocks that are going up right now.
In the process of investing, we are often rational when we should be emotional, and emotional when we should be rational. Everyone knows how important mentality is. Only by not taking temporary rises as joy and not taking temporary falls as sadness, and repeatedly tempering and mastering your mentality, will your A-share road be full of surprises. In fact, sometimes we have to buy stocks in batches like fools, because only something as simple as turning stock buying into buying corporate equity can be lasting and profound. Wait for the flowers to bloom in the passing years, keep true and pure in the bustling world, and calm your mind in the chaos.
Why retail investors chase the rise and kill the fall
1. If you are eager to make quick money, you will lose half the money just because you think about it. Hot money is harvested by market makers, while institutions are harvested by pseudo-value investors. Their instinct is to chase the rise and kill the fall. Why is this so? Because of the greed of human nature, who is willing to wait for the stock and chase the rise on the right side? It is the only option for a quick rebound, but it is also a game of matching risk and return. Only a very small number of people can make a profit. It just so happens that no one in the world admits that they are mediocre. Even if 90% of the data shows that retail investors are losing money, they still refuse to admit that they are mediocre.
2. Wealth thinking, most people are afraid of excellent companies, because excellent companies are destined not to be cheap. Just like in real life, some people are also far away from brands. They all know that you get what you pay for in mid-to-high-end products. However, there are some people who are willing to pick up bargains. So, don't blame the poor quality. In fact, ordinary people, the ones who are least likely to be harvested are those who hold industry-leading blue-chip stocks, because the rich have heavily invested in a great company. If you are riding on the back of a bull, it is impossible for others to harvest you, right? In addition to this number, there are also normal operating companies behind it, with annual profit growth, annual dividends, monopoly, and scarcity, which solves your stock selection problem. Then you only need to make a decision, and you will get twice the result with half the effort.
3. Cognition is the ceiling of the investment world. Any stock should have a holding logic. You should fully understand it and not rely on luck. No one can make a living by trading. Recently, a trader jumped off the building again, named Xiao Ming. I have not seen many people who make money in the market by trading. In the era of big data, AI quantification, the main trading methods are very extreme, and there is not much chance of winning. Most people, no matter how much profit they make, will return it to the market and gamble for a long time. You must lose. This is his final message before his death. Can everyone accept the bloody lesson?
Why do retail investors always chase the rise and the fall________?
A-share market ends
The stock market is a place full of opportunities, with a large number of investors investing in it every day Seek wealth within. However, many retail investors in the stock market suffer losses. One important reason is that they like to chase the rise and kill the fall. So why do retail investors chase the rise and kill the fall? How to avoid it? The editor has prepared relevant content for your reference on why retail investors chase the rise and kill the fall.
Why do retail investors chase the rise and kill the fall?
1. Retail trading is easily affected by emotions. When the market rises, retail investors may blindly chase the rise because they don't want to miss the opportunity, hoping to make more profits. And when the market falls, retail investors may rush to sell stocks out of fear of losses, hoping to avoid losses. Driven by this emotion, retail investors easily fall into the misunderstanding of chasing the rise and killing the fall.
2. There is information asymmetry in the stock market. Due to lack of professional knowledge and market insight, retail investors are easily affected by media reports, market news, etc. When the market is booming, the market is filled with some false or exaggerated news, causing retail investors to be misled and blindly chase the rise. When the market is in a downturn, some maliciously spread rumors or pessimistic forecasts will also trigger panic selling among retail investors.
How to avoid it?
1. Adopt a long-term investment strategy. Chasing the rise and killing the fall often occurs when pursuing short-term investment returns. Investors should make investment decisions based on the company's fundamentals and development prospects, rather than being swayed by short-term market fluctuations. When buying stocks, set reasonable take-profit and stop-loss levels, and take decisive action when the stock price reaches the preset price to avoid emotional trading.
2. Learn investment knowledge. Retail investors should pay attention to learning more stock investment knowledge, such as fundamental stock analysis and technical analysis, to improve their stock selection and risk control abilities, summarize their own investment methods, and avoid blindly following the trend of investment.
3. Diversify your investments. Investors can diversify their funds into different industries and different types of assets and adopt a more diversified investment strategy. Avoid concentrating all your funds on a few stocks, which can also reduce the risk of chasing the rise and killing the fall.
Why retail investors chase the rise and kill the fall
The first principle: See the volume before advancing.
The second principle: Don’t chase highs. You can use the Bagua box theory to place an order at a strong resistance level that has just been broken through. You should observe the first waveform after the market opens. When the market pulls back, the order will be filled just in time. If there is no pullback, but it goes all the way up and directly closes the daily limit with a huge amount, then catch up on the daily limit board.
Principle 3: Never run out of money. The full position standard is set at a maximum of 85%. The reason is that there are good stocks every day. If you are optimistic about the stocks without cash, you will not have the money to buy them. Even if you want to buy them, you cannot buy them.
Principle 4: Set a stop loss price. Not all are successful in the short term. When you make a mistake in judgment, you must leave the market resolutely. Stop loss is to use small losses to gain the opportunity of big profits. In the stock market, available funds are always more valuable than the market value of the same amount of securities.
The stock market operation cannot get rid of the reason of chasing the rise and killing the fall. In fact, it is very simple to say, because this is a problem of mentality, because many people have inertial thinking and believe that the stocks that rise today will definitely rise tomorrow. , so this action is the so-called chasing the rise, and it will form a cycle of chasing the rise and killing the fall, because when you see other people's stocks rising, but your own stock does not rise or suffers a small loss, you immediately cut off the stocks in your hands. Go after the idea of ??stocks that are going up right now.
In the process of investing, we are often rational when we should be emotional, and emotional when we should be rational. Everyone knows how important mentality is. Only by not taking temporary rises as joy and not taking temporary falls as sadness, and repeatedly tempering and mastering your mentality, will your A-share road be full of surprises. In fact, sometimes we have to buy stocks in batches like fools, because only something as simple as turning stock buying into buying corporate equity can be lasting and profound. Wait for the flowers to bloom in the passing years, keep true and pure in the bustling world, and calm your mind in the chaos.
Why do retail investors chase the rise and kill the fall
1. If you are eager to make quick money, you will lose half the money just because you think about it. Hot money is harvested by market makers, while institutions are harvested by pseudo-value investors. Their instinct is to chase the rise and kill the fall. Why is this so? Because of the greed of human nature, who is willing to wait for the stock and chase the rise on the right side? It is the only option for a quick rebound, but it is also a game of matching risk and return. Only a very small number of people can make a profit. It just so happens that no one in the world admits that they are mediocre. Even if 90% of the data shows that retail investors are losing money, they still refuse to admit that they are mediocre.
2. Wealth thinking, most people are afraid of excellent companies, because excellent companies are destined not to be cheap.
Just like in real life, some people are also far away from brands. They all know that you get what you pay for in mid-to-high-end products. However, there are some people who are willing to pick up bargains. So, don't blame the poor quality. In fact, ordinary people, the ones who are least likely to be harvested are those who hold industry-leading blue-chip stocks, because the rich have heavily invested in a great company. If you are riding on the back of a bull, it is impossible for others to harvest you, right? In addition to this number, there are also normal operating companies behind it, with annual profit growth, annual dividends, monopoly, and scarcity, which solves your stock selection problem. Then you only need to make a decision, and you will get twice the result with half the effort.
3. Cognition is the ceiling of the investment world. Any stock should have a holding logic. You should fully understand it and not rely on luck. No one can make a living by trading. Recently, a trader jumped off the building again, named Xiao Ming. I have not seen many people who make money in the market by trading. In the era of big data, AI quantification, the main trading methods are very extreme, and there is not much chance of winning. Most people, no matter how much profit they make, will return it to the market and gamble for a long time. You must lose. This is his final message before his death. Can everyone accept the bloody lesson?
Why do retail investors always chase the rise and kill the fall________?
A-shares finally ended the situation where Asian, European and American stock markets rose sharply while A-shares were "independent", rising nearly 100 points throughout the day , with a transaction volume of 236.5 billion, breaking through the downward trend line of the past year! The dawn is just around the corner, but many investors have fallen into the dark night before dawn! It's time to regret and summarize, otherwise it would be impossible for small and medium-sized investors to escape the fate of "leeks".
Technical analysis shows that the K-line combination has formed a tower-shaped bottom since 05.09, which is a signal of bottom reversal. Moreover, the daily chart shows a bottom divergence structure, and a rebound is imminent. The three-day K lines of 05.12, 05.20 and 05.26 form a combination of three bottoms, indicating that there is relatively strong support at the 2780 point line. Looking at the net inflow of smart foreign capital close to 10 billion in the past 11 trading days, you should understand that at 2750 There is no need to panic at 2800 points! On the contrary, the "numerous bones" there are the paving stones for us to "make achievements".
And today, this Tuesday, as the last trading day in May, the market used Changyang to break through the downward trend line of the past year. Do you think this is an opportunity or a risk? Looking back at my analysis report on March 13th, "The time for building a mid-line position is coming", I already explained that this year's market target is 3500 points. After the main force rebounds from 2638 points to above 3000, the trading pattern will be more complicated. We call it the ultimate The complex model has stunned investors of all sizes, including some well-known industry Vs! Just relying on the main techniques and tactics presented so far is enough for investors to learn for a long time. In other words, after we understand the trading techniques this time, it will be like the first time that Guo Jing can compete with "Western Poison Ouyang Feng" After fighting for several rounds, the internal strength has improved a lot! And this weekend we will publicly explain and analyze the specific routines of this main force's trading.
Let’s talk about the next trading ideas. There is a high probability that it will operate according to the following two modes in the next few days.
The first is to attack 2997 points with heavy volume. The condition is that the trading volume is around 280 billion, and then it exceeds the previous high. The condition is that the trading volume is around 350 billion, and then it goes back slightly to confirm the validity of the bottom, and then goes up. It is up to you to pull up the market.
The second is to attack 2997 points and encounter resistance and fall back due to poor trading volume, and then go back to the 2830 point area. If it is weak or encounters a big negative situation, it will fall below 2780 points, and then gather momentum to launch the main upward trend. , the time period will be postponed to the end of June and the beginning of July.
This ended the situation in which Asian, European and American stock markets rose sharply while A-shares were "alone". It rose nearly 100 points throughout the day, with a turnover of 236.5 billion, breaking through the downward trend line of the past year in one fell swoop! The dawn is just around the corner, but many investors have fallen into the dark night before dawn! It's time to regret and summarize, otherwise it would be impossible for small and medium-sized investors to escape the fate of "leeks". ________?
Technical analysis shows that the K-line combination has formed a tower-shaped bottom since 05.09, which is a signal of bottom reversal. Moreover, the daily chart shows a bottom divergence structure, and a rebound is imminent. The three-day K lines of 05.12, 05.20 and 05.26 form a combination of three bottoms, indicating that there is relatively strong support at the 2780 point line. Looking at the net inflow of smart foreign capital close to 10 billion in the past 11 trading days, you should understand that at 2750 There is no need to panic at 2800 points! On the contrary, the "numerous bones" there are the paving stones for us to "make achievements". ________?
And today, this Tuesday, as the last trading day in May, the market uses Changyang to break through the downward trend line of the past one year. Do you think this is an opportunity or a risk? Looking back at my analysis report on March 13th, "The time for building a mid-line position is coming", I already explained that this year's market target is 3500 points. After the main force rebounds from 2638 points to above 3000, the trading pattern will be more complicated. We call it the ultimate The complex model has stunned investors of all sizes, including some well-known industry Vs! Just relying on the main techniques and tactics presented so far is enough for investors to learn for a long time. In other words, after we understand the trading techniques this time, it will be like the first time that Guo Jing can compete with "Western Poison Ouyang Feng" After fighting for several rounds, the internal strength has improved a lot! And this weekend we will publicly explain and analyze the specific routines of this main force's trading.
________?
Tell me about the next trading ideas. There is a high probability that the following two modes will operate in the next few days. ________?
The first is to attack 2997 points with heavy volume. The condition is that the trading volume is around 280 billion, and then it exceeds the previous high. The condition is that the trading volume is around 350 billion, and then it steps back slightly to confirm the validity of the bottom. Then pull it upward to take charge of the market. ________?
The second method is to attack the 2997 point and fall back due to the lack of trading volume, and then go back to the 2830 point area again. If it is weak or encounters a big disadvantage, it will fall below the 2780 point, and then gather momentum to start the main operation. If the market rises, the time cycle will be extended to the end of June and the beginning of July.
________?