first principle: winners are not greedy

the first principle of winners in stock trading is that winners are not greedy. Not greedy is a state of mind. Investing in the stock market should not be greedy and lose the basic bottom line for judging the risk of the stock market. Don't want to be the nouveau riche in the stock market with only one chance in ten thousand, be a speculator with risk control principles and thinking with his own mind. Haste makes waste. Who doesn't want to be a nouveau riche in a short time? But in real life, we see more losers. The more you want to break out, the less you can. If you don't understand this truth, you shouldn't speculate in stocks.

the perfect situation of stock market investment is: buy at the lowest point and sell at the highest point. In your trading record, you may be able to achieve such perfect results several times, but most of the time, you certainly can't. Many investors can't do it, but they still unconsciously pursue this rare chance of perfection. Why do many people always complain about "buying late" and "selling early" and always want to buy and sell at the best price, which often leads to big mistakes? This is the goal and mentality. < P > The second principle: Don't judge with emotion. < P > The secret of Warren Buffett's investment in the stock market is to find and discover companies with the greatest potential investment value. He will never change his investment philosophy because of the ups and downs of the stock market at a certain time.

Similarly, the same is true of Soros. The secret of Soros's investment in the stock market is to find the arbitrage opportunity with the lowest fixed risk that can be calculated in the comparison of different markets, different times and different products. He will never change his investment philosophy because of the ups and downs of the stock market at a certain time.

It is difficult for us to compare ordinary stock market investors, especially retail investors, with these two world-class investment masters on the same platform. If we have to compare, one of the biggest and most essential differences is that the investment behavior of ordinary retail investors is largely influenced by their own emotions.

there are many theories about the study of the stock market. Among them, an important point or conclusion is that investors' psychology and emotions will have an important impact on the stock market cycle, or that the fluctuation of the stock market is influenced by people's psychology and emotions. Of course, this is an observation in the macroeconomic sense. But does this theory have any reference significance for our retail investors to invest in the stock market Yes. That is, you don't have to let your emotions affect your investment decisions. Deciding when to buy and when to sell should be the result of your research on the market or a company, not the result of listening to others or your own mood.

the third principle: pay attention to the trend and follow the trend

respect the trend and follow the trend. When the stock market trend goes up, hold it all the way, and when it goes down, you can't make up the position. If you make up the position too early when the trend is downward, it is equivalent to "making mistakes again." Therefore, as ordinary retail investors with very limited funds, they must not ignore the trend when trading stocks-they will make up their positions as soon as the stock price falls.

Second, learn to grasp the rhythm of plate rotation, be good at observing and studying various classification indexes and related indexes, treat them dialectically, sum up their relationships and laws, and seize the leading varieties in time.

fourth principle: wait and see

this principle in stock market investment management refers to: when there are no further signals, signs, events and potential changes in the market, the best investment principle is to be fixed or unchanged. This principle is equally important for short positions and positions. The principle is simple, but in fact many people can't. There are two main reasons:

First, when you can't see the market clearly, many people often want to see it clearly. So, just ask someone else. At this time, my established ideas and opinions in the past are often influenced by others, thus unconsciously changing my judgment. It seems that we have a clear view of the market. In fact, we may have just made a mistake in the direction in a muddle, or made a mistake in recklessness. < P > Second, short-term mentality often dominates actual combat. The performance is as follows: when holding money in short positions, I am always worried that the stock market will go up and I am afraid that I may chase after it; When holding positions, I always worry that the stock market will fall, fearing that I can't ship at a high level. Therefore, although I can't see the direction of the stock market clearly, I can't let it go, thinking about it, either moving money or moving stocks. At any moment, it is difficult to judge whether the market is up or down. However, in the medium and long term, many times, the stock market just has no direction. If investors have a short-term mentality, they always want to see the dynamics of the stock market in a short time, which often creates more opportunities for themselves to make mistakes.