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Due to limited funds and a large number of people, the behavior of retail investors in stock market transactions is obviously irregular and irrational, and their emotions are easily affected by market conditions and atmosphere. It is precisely because of this that most retail investors do not make money in the stock market, that is to say, about 80% of people who follow the trend and follow the crowd are responsible for paying the bill, and some of them are guaranteed. Only a few people earn the vast majority of money, which is also in line with the 28 th rule of A shares.
Therefore, retail positions can be regarded as a reverse indicator. When the position of retail investors rises to a relatively high position, it means that everyone is chasing up, which may not be a good signal. When the retail position is relatively low, it means that the retail position has almost fallen, which may often be a relatively low market.
Understanding retail positions is actually a reverse investment strategy. Because most retail investors don't make money in the stock market, the core reason is that they are always thinking forward or trend, always chasing up and down. Almost all investment masters are reverse investment masters, but their expressions are different. For example, Buffett said that "others are afraid of my greed, others are greedy and I am afraid"; Soros said, "Everything will have ups and downs, and after it is good, it will be bad"; Charles Munger said: "Things must be reversed, and it is correct to think in reverse." These are the most classic manifestations of reverse investment.
Therefore, retail positions can sometimes be used as a reverse indicator in investment, which is conducive to improving the winning rate of stock market transactions.
Because of this, many WeChat official accounts V like to add "positions" statistical surveys to the daily articles of WeChat official accounts, with the purpose of observing market sentiment as a reverse indicator.